Do you wish to know what is e-Rupi- new payment method; How it works? Today, India is going to take another significant step forward in the field of digital payments. Prime Minister Narendra Modi is going to unveil e-RUPI, an e-voucher-based digital payment solution. The Benefits will reach the beneficiaries without leakage. There will be no middleman or intermediary in the middle.
e- RUPI;new payment method. How it works?
e-RUPI is a cashless and contactless digital payment system. this will be transmitted to beneficiaries’ mobile phones in the form of an SMS string or a QR code. This will function similarly to a prepaid gift card, redeemable at designated accepted locations. There is no need of a credit or debit card, a smartphone app, or internet banking.
How do they distribute these e- RUPI vouchers?
The system was developed by NPCI on its UPI platform. The issuing banks and organisations have been decided. Any company or government agency will have to contact one of the partner banks, both private and public-sector banks. To get e-RUPI vouchers, names of specific individuals and the purpose for which payments are required are to be furnished.
The uses of e-RUPI-new payment method
e-RUPI would make sure that welfare services are delivered in a secure manner. It can also be used to deliver services under various schemes. The schemes include Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. Other schemes which provide drugs and nutritional support to mothers and children. TB eradication programmes, drugs and diagnostics under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. Also included fertiliser subsidies, and so on. Even the commercial sector can use these digital coupons as part of their employee welfare programmes.
What does e-RUPI mean, and how is it different from a digital currency?
The government is already working on a central bank digital currency. The introduction of e-RUPI could reveal the holes in digital payments infrastructure that will be required for the digital currency’s viability. In effect, e-RUPI is still backed by the existing Indian rupee. This distinguishes it from virtual currencies and brings it closer to a voucher-based payment system.
The following are some of the advantages of e-RUPI:
1) e-RUPI is a contactless and cashless electronic payment system.
2) It establishes a digital link between service providers and recipients.
3) Various social services are available in a leak-proof manner.
4) It is a QR code or SMS string-based e-voucher sent to the beneficiaries’ mobile phones.
5) Users of this one-time payment system will be able to redeem the funds.
6) e-RUPI establishes a digital link between service sponsors and beneficiaries and service providers, eliminating the need for a physical interface.
7) It also ensures that the service provider is only paid after the transaction has been completed.
8) Because it is pre-paid, it ensures prompt payment to the service provider without the need for an intermediary.
9) It can be used for services like as providing medicines and nutritional assistance under maternity and child welfare schemes.We can use it for TB eradication programmes, medicines and diagnostics under Ayushman Bharat Pradhan initiatives. We can also use it for Mantri Jan Arogya Yojana, fertiliser subsidy, and other schemes.
10) The private sector can also utilise these digital vouchers for their employees’ welfare.
