To facilitate its customer’s digital banking needs HDFC Bank has recently launched various new services in Unified Payments Interface (UPI) and Central Bank Digital Currency (CBDC). All these new solutions are created together with the most significant fintech partners to enhance the convenience, security, and availability of the services for users all over the country.
Some of the new HDFC Bank features on UPI and CBDC are still unknown but this article will keep us.
Some of the new additions that have been made by HDFC Bank include the UPI Circle-Delegate Payment, Personalised UPI Experiences, and the User-Level Programmable CBDC. These were unveiled during the Global Fintech Fest 2024 in Mumbai in which the bank partnered with leading fintech firms such as KreditPe, ToneTag, and PayU.
Dixon noted that the bank talked about innovation while Parag Rao, Group Head of payments, Liability Products, Consumer Finance, & Marketing at HDFC Bank, was keen to assert – In that context. “At HDFC Bank, innovation lies in providing better banking solutions to our customers,” said Rao adding that the new UPI feature has the potential to make digital transactions safe, seamless, and available for all groups of people starting from the largest metropolis to the remote parts of India, moreover, the long-term cooperation with several fintechs has been result in delivering the solutions meeting the needs of most diverse customers.
Rao also discussed the customer convenience that would be provided by the new CBDC features A huge thank You to the Reserve Bank of India for its invaluable guidance in the User-Level Programmability feature for CBDC.
Some of the main aspects of UPI at HDFC Bank as well as CBDC are as follows:
UPI Circle-Delegate Payment: It helps the primary or owner account holder of any UPI application to assign payment control to another user. This is particularly important since the secondary user who wants to transact using the primary account holder’s UPI account does not have to open an additional account. The feature of transfer of money between Axis Bank and the other account was launched by undertaking the HDFC Bank together with the country’s KreditPe.
Personalized UPI Experience – SmartHub – Merchant EMI Vyapar: At the time of payment HDFC Bank offers credit card EMI options through UPI and offers, promotions, and lightning deals to its customers. This feature is going to enhance the banking selections to increase payments that make banking easier and more individual.
User-Level Programmable CBDC: The bank has implemented User Level Programmability for its Digital Rupee Wallet wherein the users can program the payments on certain conditions. For instance, the users can schedule the digital currency for certain benefits and have it made valid for a certain period, or even use it only in certain locations. This feature can be categorized as one of the advantages of CBDC since it introduces a higher level of control and variability for the users.
Analyzing the Importance of Fintech Partnership in Strategic Management of HDFC Bank
There has been a huge emphasis on partnerships with fintech companies as part of the HDFC Bank’s growth plan in the competitive context of the contemporary digital banking environment. The bank has collaborated with variety of fintech players in the past and present such as MintOak, Zeta, RazorPay, PineLabs, JusPay and many more. Such collaborations have resulted into products like SmartHub Vyapar and PayZapp that have been deemed fit to cater for the ever-evolving customer needs.
Conclusion
The new UPI and CBDC functions addition to HDFC Bank are evident steps towards advanced digital banking, new safety measures, and customizable preferences for users. With the nature of the bank to innovate and strategically harness the opportunities that emerge from partnerships with fintech businesses, customers should prepare for even more disruptive solutions in the future.
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