In the era of digital currency, Prime Minister Narendra Modi on Monday launched a new innovative digital payment solution platform named e-RUPI. The platform was developed by the National Payments Corporation of India (NPCI) in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and partner banks. It’s a person oriented or purpose-specific payment system. According to the government this new payment mode is to ensure direct monetary support by the government to its beneficiaries/citizens without any leaks or mishaps.
What is
e-RUPI and how does it work?
It is in the form of a prepaid e-voucher
powered by UPI issued directly to the recipient after a two step
verification (identity and mobile number), which is target sensitive and can be
only be used to make payment for generated intent. When availing this services
you would receive a QR code or SMS string-based e-voucher on your registered mobile number
that can be used by you only once. Imagine, it as a coupon that can be redeemed
only for a specific item and you can’t cash it for money/other purposes. For example
e-RUPI voucher issued to pay money for any health service can only be used for that
purpose alone.
Advantage of
this e-voucher:
The user can
benefit from this e-payment method even if they don’t have a card, digital
payments app or internet banking access. This payment
process and transaction is completely digital, contactless and cashless.
Services that
fall under this digital payment platform are drugs and nutritional support under
Mother and Child welfare schemes, TB eradication programs, drug and
diagnostics, fertilizer
subsidies and so on.
The private
sector can as well avail these services as part of their employee welfare and corporate
social responsibility program, to cover for travel, food and healthcare etc.
At present there
are eleven banks in affiliation with e-RUPI, however Canara Bank, Indusind Bank,
Indian Bank, Kotak Bank, Union Bank of India can only issue and not accept the
said vouchers. But Axis, Bank of Baroda, HDFC, ICICI, Punjab National, SBI
banks can do both accept as well as issue the vouchers.
