Union Bank of India has announced plans to integrate the Reserve Bank of India’s digital rupee into its employee benefit schemes
This initiative aims to shift specific allowances directly into employees’ Central Bank Digital Currency (CBDC) wallets, marking a significant move towards embracing digital currency.
Employee Federation Pushes Back
The bank’s decision to credit allowances like the newspaper allowance directly to the CBDC wallet has sparked resistance among a section of its staff.
This discontent culminated in a protest by the All India Union Bank Employees Federation, demanding that the bank’s management engage with staff members before implementing such changes.
In a letter dated December 28, the employee association emphasized that adopting the CBDC should remain a choice, not a compulsion. They argued that the bank’s aspiration for complete staff registration on the Digital Rupee App should be more about encouragement than enforcement.
This move by the Union Bank of India aligns with the RBI’s launch of the CBDC, Retail, on December 1, 2022, symbolizing a significant shift towards digital currency in India.
Despite the bank’s innovative approach and the RBI’s reported success in achieving a million daily transactions in the retail segment of the CBDC, the road ahead requires careful navigation, balancing technological advancement with employee consent.
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