Prime Minister Narendra Modi on Monday launched a new digital payment system called e-RUPI and called it first step towards having a digital currency in the country and a revolutionary initiative in the direction of ensuring a targeted and leak-proof delivery of welfare services in the country.
What is e-RUPI?
e-RUPI is a cashless and contactless instrument for digital payment developed by the National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority. It is a QR code or SMS string-based e-voucher that is delivered to the mobile of the beneficiaries.
How does it work?
Beneficiaries will be able to directly receive the vouchers from the government on their mobile numbers. But for getting the e-RUPI coupons, their mobile number and identity will be verified.
Users of this one-time payment mechanism can redeem the vouchers at specific accepting centres without any card, smartphone, digital payments app or internet banking access. e-RUPI helps connect the sponsors of services with beneficiaries and service providers without any physical interface in a digital manner. It also ensures payment to the service provider is made only after the transaction gets complete
Where can it be used?
Apart from regular payments, it can be used for services under various schemes, financial benefits under DBT and also by the private sector for its employee welfare and corporate social responsibility programmes
As per information by National Health Authority, several banks including State Bank of India, HDFC, Axis, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank, ICICI Bank are supporting this payment mode with issuance and redemption facilities for e-RUPI coupons.