HDFC Bank has introduced new features for the Unified Payments Interface (UPI) and Central Bank Digital Currency (CBDC), developed in collaboration with various fintech partners. These additions are designed to improve the digital banking experience of users by enhancing convenience, security, and user accessibility.

The newly launched features include UPI Circle-Delegate Payment, personalised experiences on UPI, and user-level programmable CBDC. These features were unveiled at the Global Fintech Fest 2024 in Mumbai, where HDFC Bank worked with fintech companies such as KreditPe, ToneTag, and PayU to roll out the offerings. Regarding these new developments, representatives from HDFC Bank highlighted that the bank has consistently prioritised innovation to improve banking experiences.

They stated that these new UPI features are intended to make digital transactions more user-friendly and secure. Over the years, HDFC Bank's partnerships with various fintechs have enabled the creation of solutions designed for the needs of a broad customer base, ranging from urban centres to remote areas. Officials also acknowledged the Reserve Bank of India's role in supporting the development of new features for CBDC payments, particularly the introduction of user-level programmability.

This feature is expected to further enhance customer convenience. HDFC Bank has a history of collaborating with fintech companies, including MintOak, Zeta, RazorPay, PineLabs, and JusPay. These partnerships have resulted in solutions such as SmartHub Vyapar and PayZapp, which aim to meet the evolving needs of customers.

A closer look at the new features Some of the most noteworthy features added to the UPI and India’s CBDC initiative include: UPI Circle-delegate payment: this feature allows a primary account holder in any UPI application to authorize a secondary user to make payments. The delegate payment feature enables these secondary users to conduct transactions using the primary account without the need to set up separate accounts. HDFC Bank partnered with KreditPe to introduce this feature.

Personalised UPI experience – Merchant EMI – SmartHub Vyapar: this feature integrates personalized offers, promotions, instant discounts, and credit card EMI options into UPI payments. The goal is to create more tailored banking experiences and streamline payment processes for users. User-Level programmable CBDC: the introduction of user-level programmability in the HDFC Bank Digital Rupee Wallet allows users to control how their CBDC payments are made.

This includes defining specific benefits, setting validity periods, or restricting usage to certain geographical areas. This feature provides greater flexibility and control over digital currency transactions. .