eRUPI Digital Payment System, What is e RUPI, How it Works, Advantages
On 2nd August 2021, Prime Minister Modi launched a new digital payment solution eRUPI via video conferencing. e-RUPI is an electronic voucher based digital payment system developed by the National Payments Corporation of India (NPCI) on its UPI platform, in collaboration with the department of financial services, ministry of health & family welfare and national health authority.
What is eRUPI
eRUPI is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS-string or a QR code. This will essentially be like a prepaid gift-voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking. e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
Applications of eRUPI
- The voucher is going to play a vital role in making direct benefit transaction (DBT) more effective in digital transactions in India.
- It will help everyone in targeted, transparent and leakage free delivery.
- e-RUPI is person as well as purpose specific. Hence, the platform will ensure that the money given by any organisation is used for the same work for which that amount was given.
- If any organization wants to help someone in their treatment, education or for any other work, then they will be able to give an eRUPI voucher instead of cash. This will ensure that the money given by him is used for the work for which the amount was given.
- It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies etc.
- The government also said that even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.