HDFC Bank launches new UPI, CBDC features for UPI Circle Delegate Payment, SmartHub Vyapar

HDFC Bank launched a few new features for Unified Payments Interface (UPI) and Central Bank Digital Currency (CBDC). These features include the newly-launched UPI Circle-Delegate Payment; Personalising Experiences on UPI; and User-Level Programmable CBDC. Created in partnership with numerous fintech collaborators, the objective of these functionalities is to elevate the digital banking experience for clients through advancements in convenience, security, and accessibility.

HDFC Bank has tied up with various players, like KreditPe, ToneTag and PayU, in the fintech ecosystem to launch these new offerings at Global Fintech Fest 2024, in Mumbai.

New features

UPI Circle: The UPI Circle feature is designed to allow the primary account holder in any UPI application to delegate payment responsibilities to a secondary user. Through the Delegate Payment via UPI feature, the secondary user can conduct transactions using the primary account holder's account without the need to create separate accounts. This innovative offering has been brought to the market through a collaboration between HDFC Bank and KreditPe.

UPI - Merchant EMI - SmartHub Vyapar: HDFC Bank has introduced a feature that personalises the user experience on UPI by offering tailored promotions, exclusive discounts, and convenient credit card EMI options during the payment process. This initiative not only enhances the banking experience for users but also streamlines the payment process, providing a more seamless and efficient service.

Central Bank Digital Currency functionality: HDFC Bank has recently introduced User-Level Programmability on Central Bank Digital Currency (CBDC). This would allow users to take advantage of programmable features within the HDFC Bank Digital Rupee Wallet. With User-Level Programmability, individuals can customise payments to be made for specific purposes, such as defined benefits. 

Moreover, users can now specify additional conditions such as the validity period or geographical restrictions on where the CBDC can be utilized. This innovative feature empowers users to tailor their digital currency usage according to their needs and preferences.

“The new UPI features we’ve introduced are designed to make digital transactions more accessible, secure, and convenient for our customers. By partnering with multiple fintechs over the years, we have been able to deliver tailor-made, cutting-edge solutions that meet the needs of our diverse customer base, from large metros to remote parts of the country,” said Parag Rao, Group Head – Payments, Liability Products, Consumer Finance, & Marketing, HDFC Bank.

“Adding a further dimension to customer convenience, new features have been added to CBDC payments. We extend our sincere gratitude to the Reserve Bank of India for their continued guidance and support in the development and roll-out of User-Level Programmability for CBDC,” Rao further said.