Multiple Fin-Techs in India realizing the significance of being regulated by RBI

Google, Amazon, and Walmart have applied to join the Reserve Bank of India’s (RBI) digital currency pilot, offering transactions via the e-rupee

Google, Amazon, and Walmart have applied to join the Reserve Bank of India’s (RBI) digital currency pilot, offering transactions via the e-rupee. Reports say that Indian fintech, including Mobikwik & Cred, also participates. Google Pay, Walmart-backed PhonePe, and Amazon Pay aim to facilitate e-rupee transactions through their platforms. The RBI launched the e-rupee pilot in December 2022 as a digital alternative to physical currency. Despite an initial surge, e-rupee transactions have declined, mirroring global challenges in popularizing digital currencies. Initially, only banks could offer e-rupee transactions, but in April, the RBI allowed payment firms to participate once approved. These firms are collaborating with the RBI and the National Payments Corporation of India (NPCI) and expect to roll out e-rupee access within three to four months.

Although transaction volumes using the e-rupee peaked at over a million daily late last year, they have since fallen to 100,000-200,000 daily. Allowing famous payment firms to offer e-rupee transactions will increase usage by expanding the user base. Together, these firms account for over 85% of digital payments via the Unified Payments Interface (UPI), which averages about 13 billion transactions monthly. While the RBI continues efforts to popularize the e-rupee, there are no immediate plans for a full-scale launch, with the digital currency likely to remain in the pilot stage for the next few years. The RBI and NPCI have not commented on the developments, and the payment firms involved have declined to provide further information.