You can be on Entrepreneur’s cover!

IDFC FIRST Bank And ToneTag Partner To Launch CBDC Payments The digital rupee offers features of physical cash like trust, safety and settlement finality

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

IDFC FIRST Bank Twitter handle

IDFC FIRST Bank has partnered with ToneTag, a global proximity and voice tech solution provider to enable acceptance of Digital Rupee at Merchant outlets. This partnership comes at the back of a pilot program launched by the Reserve Bank of India (RBI). RBI, recently announced the launch of Central Bank Digital Currency (CBDC) for retail users. This initiative is in the first phase of its implementation with 4 banks including IDFC FIRST Bank.

Through this initiative, the currency is issued in the same denominations and distributed through financial intermediaries and the users will be able to transact through a digital wallet offered by the participating banks. The digital rupee offers features of physical cash like trust, safety and settlement finality. Like cash, the CBDC will not earn any interest and can be converted to other forms of money, like deposits with banks, according to an official statement.

"This solution will change how merchants transact, and IDFC FIRST Bank is a proud partner in this collaboration. Digitization of cash payments is one more step in making transactions easier for our customers. As a bank that firmly believes in 'Customer First' approach this initiative aligns well with the same," said Madhivanan Balkrishnan, COO, IDFC FIRST Bank.

As per RBI, users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones or hardware wallets to facilitate person-to-person (P2P) and person-to-merchant (P2M) transactions. The e₹-R will continue to offer features of physical cash of safety, trust, and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks, the statement added.

"We are glad to collaborate with IDFC First Bank and participate in the first phase of CBDC retail pilot. In this pilot ToneTag will provide solutions through which merchants will be enabled to accept digital currency. With this launch India becomes one of the only few companies Globally to take this leap of digitalizing cash and reap it's great potential to reduce counterparty credit and liquidity concerns, as well as increase the efficiency of payments and securities settlement. This indeed is going to be India's decade and many kudos to RBI," said Kumar Abhishek, founder and CEO ToneTag.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Google's 'Find My Device' Will Finally Roll Out to Android Phones. Here's Why It Was Delayed.

Both Android and Apple iOS users will receive unknown tracker alerts on the Find My Device network.

Management

HR Could Be Withholding The Critical Data You Need to Boost Retention and Drive Results. Here's How to Take Control and Gain Access

To get people data into the hands of managers so they can use it to drive business results, companies must break down barriers between HR and the rest of the organization

Business News

Elon Musk Says AI Technology Will Be Smarter Than 'Any Human' By 'Next Year'

The billionaire spoke about the rapid advancement of the technology in a livestream interview on X.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.

Leadership

Employees Are Burning Out — and the Culprit Isn't What You Think

There's a type of stress that has a huge impact on employees' health, work performance and personal lives. Here's what it is and what you can do to combat it, both for yourself and your employees.