New Delhi : Prime Minister Narendra Modi used video conferencing to introduce e-RUPI, a person- and purpose-specific digital payment system. Digital technology is drastically altering people’s lives and advancing the concept of Ease of Living. In a tweet on Sunday, Modi stated, “We will introduce e-RUPI, a futuristic digital payment system that gives numerous benefits to its customers, at 4:30 PM on August 2nd.”
“Today the country is giving a new dimension to digital governance. e-RUPI voucher is going to play a huge role in making DBT more effective in digital transactions in the country. This will help everyone in Targeted, Transparent and Leakage Free Delivery,” Prime Minister Narendra Modi said.
Under this new payment system, the beneficiaries will get an electronic voucher or coupon that can be used without online banking, payment applications and other traditional payment modes. In a simpler language, e-RUPI, the new digital payment mode, is a QR code or SMS string-based e-voucher. The digital coupons, similar to Sodexo vouchers, have been developed by the National Payments Corporation of India in collaboration with the department of financial services, ministry of health and family welfare and national health authority.
Benefits
There is no connection between the e-RUPI payment mechanism and any app or mobile banking. As a result, these electronic vouchers are accessible to anybody with a phone. The SMS coupon can be used at the service provider. When the transaction is complete, the payment to the provider will be executed. Because this payment is prepaid, it provides prompt payment to the service provider without the need for a middleman.
e-RUPI is a QR code or SMS string-based e-Voucher that is sent to the recipients’ mobile phones. E-RUPI incorporates the elements of UPI (Unified Payments Interface), a revolutionary payment system created by the National Payments Corporation of India (NPCI). NPCI has developed e-RUPI in partnership with the National Health Authority (NHA), the Finance Ministry, and the Ministry of Health and Family Welfare.
Read Also : Insurance Bill cleared at Parliament
The Prime Minister’s Office stated in a statement that the e-RUPI project would be one of the programmes introduced throughout the years to reduce contact points between the government and the recipient and “guarantee that the benefits reach its intended beneficiaries in a targeted and leak-proof way.”
e-RUPI works by creating a link and forming a connection between users, service providers, and beneficiaries using a digital medium. It also ensures that the service provider is paid only after the transaction has been completed. Because it is prepaid, it provides prompt payment to the service provider without the need for a middleman.
According to the PMO, it is intended to be a game-changing effort to assure the delivery of leak-proof social services. It can also be used to deliver services under schemes such as TB eradication programmes, fertiliser subsidies, medicines and diagnostics under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which provides drugs and nutritional support to mothers and children and so on. E-RUPI is also beneficial for private sectors. The services offered by e-RUPI helps corporates to provide schemes for their employees and fulfil their obligations under Corporate Social Responsibility (CSR).
Read Also : HDFC’s consolidated net profit up 31%
Banks which are affiliated to e-RUPI Services
This new digital payment mechanism is now supported by 11 public and private sector banks. e-RUPI vouchers are completely supported by HDFC Bank, Punjab National Bank, Axis Bank, Bank of Baroda. State Bank of India, and ICICI Bank. These banks provide both the issue and redemption of e-RUPI coupons.
Only e-RUPI coupons may be issued by banks like Kotak Mahindra Bank, Union Bank of India, Canara Bank, Indusland Bank, and Indian Bank. These lenders do not provide the redeeming digital voucher option.
