Reliance General Insurance announced on Wednesday that it is now the first general insurance provider in the nation to accept premium payments in e-Rupee, the RBI’s central bank digital currency.
According to a release, the company has partnered with Yes Bank to make it easier for premiums to be collected digitally via the bank’s e-Rupee technology.
Customers can scan the e-Rupee QR code provided by Reliance General Insurance to make an immediate payment if they have an active e-wallet with any bank, the company stated.
With this innovative opening, the company upholds its commitment to providing outstanding customer experience by offering its clients a simple, secure, instantaneous, and environmentally friendly payment alternative.
They claim that the e-Rupee is a digital token equivalent to a banknote that is a kind of government-issued money backed by the RBI as part of legal tender.
It claimed that because e-Rupee is digital, it eliminates all the problems associated with using actual currency and provides the same level of privacy as a banknote. Additionally, it claimed that because all e-Rupee transactions go via an organisation that is under the control of the RBI, there are less hazards associated with banknotes, such as money laundering and currency fraud.
Reliance General Insurance said that by offering e-Rupee as a sort of digital currency transaction alternative, it is helping its customers to hedge such risks and promote secure financial transactions.
The e-Rupee pilot initiative was launched in Mumbai, New Delhi, Bengaluru, and Bhubaneswar on December 1st, 2022. Four major lenders, including State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank, participated in the launch of the retail digital rupee project in a limited user group. Later, it will be expanded to Shimla, Hyderabad, Indore, Kochi, Gangtok, Guwahati, Lucknow, Patna, and Hyderabad. The scope has gradual expansion plan as and when required for the additional banks, users, and locations.