India to launch e-RUPI, Honorable Prime Minister Shri Narendra Modi launched e-RUPI, An electronic voucher-based digital payment system.It will enable the targeted delivery of social benefit and subsidy through QR codes and SMS. A major setup towards the eventual rollout of India's Central Bank Digital Currency. In this article, we are going to provide complete information about how e-RUPI digital works, benefits, and it's uses.
Prime Minister Narendra Modi launched an electronic voucher basic digital payment system e-RUPI. The platform, which has been developed by the National Payment Corporation of India (NPCI), in association with Department of Financial Service(DFS), Minister of Health and Family Welfare (MoHFW), and The National Health Authority(NHA) will be a person specific and purpose specific payment system taking the first step toward a digital currency in the country.
What is e-RUPI digital payment Solution?
e-RUPI is a cashless and contactless digital payment method, which will be delivered to an eligible mobile phone of beneficiaries in the form of SMS string or QR code. It will be like a prepaid gift voucher that can be redeemed at some of the accepting centers without any credit or debit card, mobile app or internet banking. e-RUPI will connect the sponsors of the service with the beneficiaries and service providers digitally without any physical interface.
In simple: A digital voucher developed by the National Payments Corporation of India (NPCI) will be transferred directly to the mobile phone as an SMS string or QR code. e-RUPI users will be able to redeem the vouchers at the merchants accepting UPI e-Prepaid Vouchers.
For example: Assume that if the company has assigned work to an employee, for this work. An employee has to move to another state. Basically, expenses have to be bear by the company. Like hotel and meals expenses, the company will not give cash in hand because to avoid misuse.The company gives QR code or SMS to an employee(generated by partner Bank). Through vouchers or QR code employee can redeem.
The system has been built by NPCI on its UPI platform and has onboarded banks that will be the issuing entities. Any corporate or government Agency will have to approach the partner banks, which are both private and public-sector lenders, with the details of the specific persons and the purpose for which payments have to be made. The beneficiaries will be identified using their mobile number and a voucher allocated by the bank to the service provider in the name of a given person would only be delivered to that person.
Banks are live with e-RUPI
| Banks |
|---|
| State Bank of India |
| HDFC BANK |
| Axis Bank |
| Punjab National Bank |
| Bank of Baroda |
| Canara Bank |
| IndusInd Bank |
| ICICI Bank |
How is it different from online payment?
e-RUPI is not any platform, it is a voucher meant for specific services in e-RUPI Voucher are purpose specific and even if one does not have a bank account or a digital payment app or a smartphone can benefit from these vouchers.
What is the use of it?
According to the government, e-RUPI is expected to ensure the leak-proof of delivery of welfare services. it can also be used for delivering services under the schemes meant for providing drugs and nutritional support under mother and child welfare schemes, TB eradication programmes, drugs and Diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc.
The government also said that even in the private sector can leverage these digital Vouchers as a part of their employee welfare and corporate social responsibility programmes.
The person who is buying the vouchers and issuing them to others can track the utilization of the vouchers.
Privacy is another issue as the beneficiary won't have to share their personal details.
Significance of e-RUPI
The government is already working on developing a central bank digital currency and the launch of e-RUPI could potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital Currency.
In effect a Rupee is still backed by the existing the Indian Rupee as the underlying asset and the specificity of its purpose makes it different to the virtual currency and puts it closer to a voucher-based payment system.
FAQ (e-RUPI)
Is it an alternative to UPI?
No, but it is derived from UPI and uses NPCI infrastructure to work. For now, e-RUPI is used for DBT schemes in a targeted manner, in order to stop misuse of funds. It is not a standalone payment system but UPI for a specific purpose.
Where can the e- RUPI be used?
For now, only for schemes related to the Ministry of Health. Soon, it should be used widely for other DBT schemes of the government. However, the private sector can also use it to sponsor welfare schemes.
Can e-RUPI private sector benefit?
Yes, in the private sector can leverage these digital Vouchers as a part of their employee welfare and corporate social responsibility programmes.
Where can the e RUPI be used?
For now, only for schemes related to the Ministry of Health. Soon, it should be used widely for other DBT schemes of the government. However, the private sector can also use it to sponsor welfare schemes.
0 Comments
If you have any queries, Please let me know.