Reliance General Insurance starts accepting premiums in RBI's e-Rupee

Reliance General Insurance has become India's first general insurance company to accept the Reserve Bank of India's Central Bank Digital Currency e-Rupee for premium payments. The company has partnered with Yes Bank to enable premium collection using the bank's e-Rupee platform.

How will the new payment method work?

Customers with an active e-wallet with any bank can scan Reliance General Insurance's e-Rupee QR code to make immediate payments. According to the company, this new payment method aims to provide customers an easy, safe, instant, and green payment solution.

By accepting e-Rupee for premium payments, Reliance General Insurance is enabling its customers to hedge such risks and promote safe financial transactions.

The retail digital rupee project was launched in a closed user group with the participation of four leading lenders, including the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank.

The pilot for the retail digital rupee was launched in Mumbai, New Delhi, Bengaluru, and Bhubaneswar on December 1, 2022, and will later be extended to other cities. The scope of the pilot may be expanded gradually to include more banks, users, and locations as needed.

Also read: CBDC vs UPI: What differences did RBI Governor Shaktikanta Das note

What is e-Rupee? 

e-Rupee is a digital token that is equivalent to a banknote and is backed by the RBI. The central bank claims that it removes all issues related to handling physical cash and offers the same anonymity as a banknote. In addition, since all e-Rupee transactions are done through an RBI-regulated entity, it reduces banknote-related risks like anti-money laundering and the counterfeit of currency.

Also read: Reliance Retail becomes first retailer to accept payments via Digital Rupee at stores