BoB Introduces Merchant Loyalty and Cashback Program to Promote CBDC.

Banking & Finance

On 27 February 2025, Bank of Baroda (BoB), based in Vadodara (Gujarat), launched a pilot for a "Merchant Loyalty/Cashback Programme" using programmable Central Bank Digital Currency (CBDC) for its customers through the "bob Merchant App."


      - The project, developed under the guidance of the Reserve Bank of India (RBI), allows small and medium-sized merchants to create and manage their own loyalty programs.

      - Merchants banking with BoB and registered on the app can set up cashback offers without incurring additional infrastructure costs.

      - Pharmacies, grocery stores, and local retailers can customize their loyalty campaigns by adjusting the duration, cashback percentage, and expiry date.

Main Point :-   (i) Customers using the digital rupee app for purchases will receive cashback in the form of programmable CBDC. This offer is currently available only to BoB account holders. The cashback can be redeemed at the same merchant outlet before its expiry.

      (ii) The initiative aims to promote the usage of CBDC by making digital payments more attractive to both retailers and customers. It also seeks to support small businesses by improving customer retention and driving repeat business.


          ____________________________