Our honorable Prime Minister Narendra Modi has launched E-Rupi on 2nd August 2021 at 4:30 pm, to enhance and solidify the structure of digital payments in India, e- Rupi has been launched, it is a contactless, cashless, voucher-like digital payment system. The E-RUPI has been developed in collaboration with the NPCI ( i.e National Payments Corporation of India), Department of Financial Services, the National Health Authority, and the Ministry of Health and Family Welfare.
Table of Contents
What is e-RUPI?
e-RUPI can be defined as a person and purpose-specific payment system which will be used in form of QR based code or SMS string. It will be sent to the beneficiary’s phone and can be redeemable at assigned centers without using mobile banking applications, debit/credit cards, or more, thus it will reduce the physical interface. Basically, E- RUPI will act like a prepaid or pre-loaded, voucher that can be used without debit cards, credit cards, mobile or internet banking, and more. It will easily connect beneficiaries and sponsors. Ensuring the payment security, the service provider payment will be made only if the transaction is completed.
PMO Statement
“Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary,”
How does E-Rupi will work?
Under the umbrella entity of the UPI platform, private and public sector banks will be onboarded for issuing entities. Once this process is completed, then various government agencies will approach these entities with specific beneficiary details, the payment purpose, and other details. After identifying the beneficiary using their mobile number, a voucher will be generated and delivered to that particular beneficiary for redemption.
Some of the benefits of e-RUPI are:
Cashless and contactless digital payment.
Connects service sponsors and beneficiaries digitally.
Ensures leak-proof delivery of various welfare services.
— Narendra Modi (@narendramodi) August 1, 2021
Are E-RUPI and digital currency are same?
No. e-RUPI is not a digital currency. it has been baked by the Indian currency as an underlying asset, which makes it different from other virtual currencies. The apex bank is working on implementing CBDC (i.e central bank digital currency ) across India.
In a recent interview T Rabi Sankar, the deputy governor of RBI has emphasized the needs of such CBDCs. He said, “desirable not just for the benefits they create in payments systems, but also might be necessary to protect the general public in an environment of volatile private VCs”.
As Indian youth are looking to invest in cryptocurrencies such as Bitcoin, Ethereum, Ripple, Dogecoin, and more, and extensive potential areas in a high currency to GDP ratio, currently it is at 14.6%, and acting as a shield for retail investors’ unstable cryptocurrency markets.
In other words, the digital currencies directly involve the country’s current fiat currency, with a brand new digital avatar. However, this will require a major legal overhaul since our current system is formulated to deal with physical currency.
Features of e-RUPI
- This is a one-time payment mechanism., its user can redeem the voucher without using a debit/credit card, digital payments app, or mobile/internet banking, at the service provider.
- The E-RUPI has been developed in collaboration with the NPCI ( i.e National Payments Corporation of India), Department of Financial Services, the National Health Authority, and the Ministry of Health and Family Welfare.
- It directly connects the beneficiaries with the service providers virtually using digital technologies without any physical interface.
- Considering the security of payment it ensures that the payment to the service provider will be only made if the transaction has been completed.
- All the payments will be made on time to the service provider without involving any intermediary, As e-RUPI is prepaid in nature.
- The main aim of E-RUPI is to assuring a leak-proof delivery of welfare services to Indian Citizens.
- This payment mechanism can be used in various schemes for delivering services such as providing medicines and nutritional support under Mother and Child welfare schemes, TB eradication programs, diagnostics & medicines under Health-related schemes such as Ayushman Bharat, One Nation One Health Card, Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.
- The private sector and multi-national companies are also allowed to use these digital vouchers for their employee’s welfare and corporate social responsibility programs.
FAQ
What is e-RUPI?
It is a person and purpose-specific payment system which will be used in form of QR based code or SMS string. It will be sent to the beneficiary’s phone and can be redeemable at assigned centers without using mobile banking applications, debit/credit cards, or more, thus it will reduce the physical interface
Who Launched E-RUPI?
E-Rupi has been launched by Shri Narendra Modi on 2nd August 2021, at 4:30 pm.
Is E-RUPI a digital currency?
No. e-RUPI is not a digital currency. it has been baked by the Indian currency as an underlying asset, which makes it different from other virtual currencies.
Who Developed E-Rupi?
The E-RUPI has been developed in collaboration with the NPCI ( i.e National Payments Corporation of India), Department of Financial Services, the National Health Authority, and the Ministry of Health and Family Welfare.
Who can Use E-Rupi?
The private sector and multi-national companies are also allowed to use these digital vouchers for their employee’s welfare