RBI's CBDC Can Now Be Accepted at Reliance General Insurance Through Yes Bank

Reliance General Insurance on Wednesday said it has become a forerunner general insurance company in the country to accept the Reserve Bank of India's (RBI) Central Bank Digital Currency e-Rupee for premium payments.

The company has tied up with Yes Bank to facilitate the collection of premiums in the digital mode using the bank's e-Rupee platform, a statement said.

Customers who have an active e-wallet with any bank can scan Reliance General Insurance's e-Rupee QR code to make immediate payment, it said.

With this pioneering launch, the company is presenting its customers with an easy, safe, instant and green payment solution, and taking its promise of providing excellent customer experience to the next level.

e-Rupee is a digital token that is equivalent to a banknote i.e. legal tender, and is a sovereign currency backed by the RBI, it noted.

Being digital, e-Rupee removes all the issues of handling physical cash and offers the same anonymity as a banknote, it said.

Moreover, it said, since all e-Rupee transactions are done through an RBI-regulated entity, it reduces banknote-related risks like anti-money laundering, the counterfeit of currency etc.

Reliance General Insurance is enabling its customers to hedge such risks by providing e-Rupee as a form of digital currency transaction option thereby promoting safe financial transactions, it said. 

The pilot for the retail digital rupee was launched in Mumbai, New Delhi, Bengaluru and Bhubaneswar on December 1, 2022. The retail digital rupee project started in a closed user group with the participation of four leading lenders, including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. Later, it will be extended to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. The scope of the pilot may be expanded gradually to include more banks, users and locations as needed.