Launched on 2nd August, 2021, e-RUPI is India’s newest addition to the digital payment saga. Known for its small ticket size benefit transfer, e-RUPI is set to make the delivery of government welfare services efficient. Read the story to know more about the mechanism.
Crux of the Matter
What Is E-Rupi
It is a cashless and contactless digital payments solution, developed by National Payments Corporation of India (NPCI) on its UPI platform.
It delivers a QR code or message based digital voucher to beneficiary’s linked mobile number. The beneficiaries will then be able to redeem this voucher at the service provider’s end without any intermediary.
The voucher is non transferable and can be used for a single transaction only. The maximum issue value size is fixed at ₹10,000.
Simplifying How It Works
3 categories of vouchers will be enlisted on e-RUPI: Banks, Payment Service Providers, amd Entities holding licences for pre-paid instruments.
A private firm or a government agency approaches a bank for issuing vouchers to beneficiaries. Upon payment of voucher amount, the beneficiaries are sent a digital voucher to a linked mobile number.
An application to scan the e-voucher will be required at the end of service provider. Finally, beneficiaries can scan the voucher and redeem it with OTP authentication.
Where Will It Be Used?
It will be used for Direct Benefit Transfer (DBT) for multiple government welfare schemes and subsidies. I t will also be used for Covid vaccination process in which a company can issue vouchers to their employees.
- National Payments Corporation Of India governs systems like Rupay and Aadhar enabled payment systems. Founded in 2008, NPCI is currently governed by the Reserve Bank of India and the Ministry of Finance.