“e-RUPI”, an electronic voucher-based digital payment system, is launched

Published: 9th Aug, 2021

Context

What is e-RUPI?

e-RUPI is a cashless and contactless mode of digital payments medium, which will be delivered to beneficiaries' mobile phones in form of an SMSstring or a QR code.
This has been developed by the National Payments Corporation of India (NPCI), the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority.
The payment system will be a person-specific and purpose-specific system.
This will be like a prepaid giftvoucher that will be redeemable without any credit or debit card, a mobile app, or internet banking at specific accepting centers.
The system is built by NPCI on its UPI platform and has onboarded banks which will be the issuing entities.

Any corporate or government agency will approach the partner banks, either private or public-sector lenders, with the details of specific persons and the purpose for which payments have to be made.
The beneficiaries will be identified by their mobile number and a voucher will be allocated by a bank to the service provider.

Significance of e-RUPI

The launch of e-RUPI could potentially highlight the existing gaps in digital payments infrastructure which isnecessary for the success of the future digital currency.
e-RUPI is still backed by the existing Indian rupee as an underlying asset and the specificity of the purpose makes it different from a virtual currency and makes it closer to a voucher-based payment system.

Digital Payment Methods

The Digital India programmeenvisions for transforming India into a digitally empowered society and knowledge economy.
“Faceless, Paperless, Cashless” is one of professed role of Digital India.
As part of promoting cashless transactions and to convert India into less-cash society, various modes of digital payments are available.

These mode are:

Banking cards, Unstructured Supplementary Service Data (USSD) , Aadhaar Enabled Payment System (AEPS), Unified Payments Interface (UPI), Mobile Wallets, Banks Pre-paid Cards, Point of sale, Internet banking (NEFT, RTGS or IMPS), Mobile banking and Micro ATMs etc.

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