Fintech platform Cred has become the first non-bank entity to roll out access to the Reserve Bank of India’s (RBI) digital currency, the e-rupee. The announcement, made on Tuesday, marks a major milestone in the adoption of central bank digital currencies (CBDCs) in India.
Cred, backed by global investors such as Tiger Global and Peak XV, has partnered with YES Bank to facilitate the issuance of e-rupee tokens into user wallets. The company will initially provide access to a select group of users, aiming to streamline and simplify digital currency transactions.
“Our goal is to make e-rupee transactions frictionless and drive its adoption among the most creditworthy Indians,” said Cred’s founder, Kunal Shah, in a statement.
RBI’s Digital Currency Journey
The Reserve Bank of India launched a pilot project for the e-rupee in December 2022. Initially, only banks were allowed to participate. However, in April 2024, the RBI expanded the program to include payment platforms, opening the door for companies like Cred to join.
This move comes as payment giants such as Google Pay, PhonePe (backed by Walmart), Amazon Pay, and MobiKwik have been vying for a spot in the pilot. Reuters reported in August 2024 that these firms were actively exploring ways to integrate the e-rupee into their payment ecosystems.
Challenges in Adoption
Despite an initial surge in e-rupee transactions, usage has dwindled over time. This trend highlights the difficulties central banks face worldwide in driving the adoption of digital currencies. Cred’s involvement could serve as a catalyst for renewed interest, thanks to its established user base of India’s affluent and creditworthy consumers.
The e-rupee is designed as a digital alternative to physical cash, offering secure, instant payment options. By incorporating it into its platform, Cred aims to make this new form of currency more accessible and convenient for everyday transactions.
What’s Next?
Cred’s entry into the e-rupee market could set the tone for India’s fintech sector, encouraging other payment platforms to follow suit. With the support of the RBI and partnerships with banking institutions like YES Bank, the e-rupee could become a cornerstone of India’s digital payment landscape.
The move signifies the growing importance of fintech in shaping the future of finance in India. For Cred, it’s not just about innovation—it’s about leading the charge in transforming how Indians transact in the digital age.
