India’s Banks Roll Out Incentives to Boost E-Rupee Adoption
Financial institutions in India have embarked on strategies to promote the adoption of the e-rupee, the country's digital currency overseen by the central bank.
Various incentives, including cash-back rewards and loyalty points akin to credit and debit card schemes, are being introduced to encourage its usage.
Initially trialed in December, the e-rupee targets one million daily transactions by year-end. Presently, retail transactions are averaging around 25,000 per day, prompting the Reserve Bank of India to initiate measures to increase usage, as revealed by informed sources.
To attract more users, the central bank has integrated the digital currency with India’s popular Unified Payment Interface (UPI), aiming to enhance its accessibility, as previously reported.
Leading banks like HDFC Bank have also launched promotional initiatives to boost e-rupee transactions. While specific details of these offerings remain undisclosed, the efforts are apparent in the quest to enhance transaction frequency.
Smaller private banks such as Yes Bank and IDFC First Bank are reported to be providing reward points that can be redeemed for various services, including travel bookings, mobile recharges, and FastTag cashbacks, as disclosed by insiders.
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Furthermore, major banks like ICICI Bank and Union Bank are anticipated to follow suit with comparable incentives, as per executives familiar with these plans.
However, the costs associated with these promotional endeavors are reportedly covered by the banks themselves, according to sources well-versed with the situation.
Globally, countries like Nigeria have implemented similar initiatives to promote digital currency adoption, but their success has been limited. Industry insiders foresee these incentives as short-term measures that might temporarily spike transaction volumes but express doubts about their sustainability without a solid business rationale for continued implementation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
