To promote the digital rupee introduced by the Reserve Bank of India (RBI), the state-owned Union Bank of India is considering transferring claims related to various employee-benefit schemes directly to the Central Bank Digital Currency (CBDC) wallet. The move bypasses the conventional salary accounts of the employees.
The bank communicated its intention to the employees on 26 December, emphasising the encouragement of CBDC wallet transactions and urging 100 per cent staff registration on the digital rupee app.
As a first step, the bank’s management has chosen to credit the newspaper allowance directly to the CBDC wallet and has advised all employees to register on the bank’s digital rupee app. However, a pilot run of this initiative is encountering resistance from some staff members.
The All India Union Bank Employees Federation is protesting the move, asserting that the management cannot enforce the use of the wallet on employees. In a letter dated December 28, the association highlighted that the use of CBDC is optional, and the management should seek the employees’ consensus before implementing such measures.
The union conveyed its perspective, stating, “Their wish for a complete staff registration on the Digital Rupee App to utilise Central Bank Digital Currency (CBDC) should be confined to providing advice and encouragement, rather than enforcing mandatory participation from the employees,” reported ET.
The RBI launched CBDC – Retail on 1 December, 2022, representing a digital manifestation of paper currency named digital Rupee. Moneycontrol reported that the RBI achieved its goal of reaching a million daily transactions in the retail segment of CBDC on 27 December. To boost the adoption of digital currency, several banks are reportedly offering incentives in the form of cashbacks or reward points.
