Canara Bank has launched UPI Interoperable Digital Rupee mobile application as a part of the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) pilot project.

The state-owned bank said Monday that it is the first bank among public and private sector banks to introduce this feature in Bank’s CBDC mobile app called 'Canara Digital Rupee app'.

With the introduction of this feature, customers will be able to scan merchant UPI QR codes using the app and make the payment through digital currency. 

Further, this feature empowers the merchants to accept digital currency payments using their existing UPI QR codes in addition to the UPI based payments without the requirements of a separate on boarding process for CBDC.

“The launch of Canara Bank Digital Rupee mobile application enabled with UPI Interoperability is a revolutionary step towards digitalizing the Indian economy,” said Canara Bank managing director and CEO Satyanarayana Raju.

The launch of the app, Raju said, will enable customers to enjoy the benefits of fast and secure transactions with digital currency devised by the RBI.

The application is available for both Android and iOS users. 

The digital currency is a legal tender as per RBI regulations and the launch of this app is a significant step towards the adoption of digital currency in India, Canara Bank said.

Some of the features of the app are: 

• Load currency into their CBDC Wallet by debiting their linked account 

• Redeem digital currency and credit the amount back to linked account 

• Transfer digital currency to any individual having CBDC wallet 

• Send and collect payments through CBDC QR based payments 

• Make payments to merchants through QR based payments (both CBDC QR  and UPI QR) 

The app features multi-factor authentication and encryption, making transactions secure and protecting user data.  

The facility is currently being offered on a pilot basis to customers and merchants of the bank in 26 cities across India. 

Canara Bank Digital Rupee app is available for all whitelisted customers in these 26 cities. If any customer is not whitelisted, then they will be prompted to request for whitelisting while installation of app. 

Customer will get message for whitelisting from the bank within 24 hours upon which they can proceed with installation of app.

CBDC users would be able to transact at any merchant UPI QR across the country.