e-Rupee Wallets by CRED and MobiKwik: Fintechs Join RBI’s CBDC Pilot
Why in the news
Fintech firms CRED and MobiKwik, partnering with Yes Bank, rolled out e-rupee wallets, a first for fintech in RBI’s CBDC pilot; the move is expected to widen acceptance and cut cash reliance.
Key facts
- Limits now: ₹10,000 per transaction and ₹50,000 per day.
- The e-rupee is a sovereign digital currency from RBI; UPI only moves money between bank accounts in real time.
- Pilot reach as of June 2024: 5 million customers and 420,000 merchants.
- CRED beta: P2P transfers and UPI-linked payments; planned CREDPay integration and PIN-less payments under ₹500.
- MobiKwik is moving to full P2P and P2M rollout.
Bank-backed versus fintech-backed wallets
| Feature | Bank-backed | Fintech-backed |
|---|---|---|
| Control | Run directly by banks | Fintechs with sponsor banks |
| Experience | Traditional banking apps | Agile, feature-rich apps |
| Compliance | Direct RBI oversight | Through partner banks |
| Reach | Bank customers only | Wider, via fintech user base |
Way forward
- Programmable money: smart contracts for automated refunds, cashback tracking and purpose-restricted payments.
- Success depends on user experience, consumer education, cost effectiveness, regulatory clarity and smooth integration.
Exam angle
- Partner bank: Yes Bank; issuer of e-rupee: RBI.
- Terms: CBDC, P2P, P2M, programmable money.