Tiger Global and Peak XV-backed CRED has taken a significant step in India’s digital financial ecosystem by becoming the first fintech platform to enable transactions using the Reserve Bank of India’s (RBI) e₹. This move aligns with RBI’s push towards a cashless economy and digital currency adoption.
The RBI launched the pilot programme for the digital rupee in December 2022, initially allowing only banks to facilitate transactions. However, in April 2024, the central bank extended access to payment firms, paving the way for fintech platforms like CRED to participate in the Central Bank Digital Currency (CBDC) initiative.
CRED’s e-₹ wallet integrates the security of sovereign-backed digital currency with a seamless payment experience, offering:
To activate their e-₹ wallet, users must complete a video KYC, after which they can load funds via UPI. The issuance of e-₹ tokens into wallets will be facilitated by YES Bank.
Alongside CRED, MobiKwik has also introduced its e₹ wallet, expanding accessibility beyond beta users. The MobiKwik e₹ wallet is now available to all Android users, offering:
This development highlights a growing trend of fintech firms embracing digital currency, making transactions smoother and more widely accepted across the digital payments ecosystem.
Speaking about the future of e₹ transactions, Kunal Shah, founder of CRED, shared his perspective: “The e₹ wallet is a milestone in India’s financial evolution. With RBI’s support, we’re empowering the creditworthy to shape the future of digital currency in the world’s fastest-growing economy. Our aim is to make e₹ transactions seamless and accelerate its adoption among India’s most creditworthy citizens.”
While CRED and MobiKwik have taken an early lead, other major payment firms such as Google Pay, PhonePe (backed by Walmart), and Amazon Pay, are also vying to participate in the RBI’s CBDC initiative as per a news report.
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Published on: Jan 29, 2025, 2:47 PM IST
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