Prime Minister Narendra Modi unveiled the e-RUPI digital voucher program, which has the potential to transform how Indians interact with and pay for government services while also bolstering the country’s burgeoning fintech industry. The National Payment Corporation of India (NPCI) established a one-time payment system in partnership with the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority of India. India’s march toward a stronger digital money transactional system began with e-RUPI digital payments.
What is e-RUPI?
- What is e-RUPI?
- How does e-RUPI work?
- How will e-RUPI vouchers be issued?
- Use cases of e-RUPI
- Is e-RUPI a cryptocurrency?
- Significance of e-RUPI
- Benefits of e-RUPI
- Bank Live with e-RUPI
- Application of e-RUPI
- Frequently Asked Questions
e-RUPI (electronic voucher-based digital payment system) is a voucher that is sent to a beneficiary in the form of an SMS or QR code. A user can redeem his/her voucher at any location where the voucher is accepted, as it is a pre-paid voucher. The e-RUPI gives users the ability to make a one-time contactless, cashless payment by redeemed vouchers without requiring them to have a credit card, digital wallet, or internet banking access.
How does e-RUPI work?
e-RUPI coupons will be given to recipients in the form of QR codes and SMS messages, and will be used to deposit money directly to their bank accounts. Any government agency or firm can manufacture e-RUPI vouchers and distribute them using their partner banks as a source of production.
A QR code or SMS message will be presented to the retailer as part of the transaction, which will be scanned and a verification code will be issued to the beneficiary’s mobile phone. The merchant must provide the code from the other party after the transaction is completed successfully.
How will e-RUPI vouchers be issued?
e-RUPI vouchers can be created by government organizations and businesses through their banks. NPCI has partnered with 11 banks to offer e-RUPI. Bank of Baroda, HDFC Bank, Canara Bank, IndusInd Bank, ICICI Bank, Punjab National Bank, Kotak Mahindra Bank, and State Bank of India are among the banks in India.
More banks and acquire apps are expected to adopt E-RUPI in the near future.
Use cases of e-RUPI
In the initial phase, NPCI is collaborating with 1,600 hospitals to offer the e-RUPI.
In the next days, e-RUPI is projected to gain traction, particularly in the delivery of private-sector employee benefits. It is also predicted that MSMEs will use it for business-to-business (B2B) transactions.
e-RUPI can be used to supply a variety of social benefits, such as education, rationing, medical care, and fertilizers, as well as aid to natural disaster victims by government, non-profit, and business entities.
Is e-RUPI a cryptocurrency?
This is not a cryptocurrency, but rather a more digitized form of payment. Customers can complete entire transactions using their cell phones without transferring money in a traditional sense.
Significance of e-RUPI
It’s significant since it’s a digital payment platform that makes it easy for citizens to make digital payments because it’s cashless and contactless. Our payment platform allows you to make these payments safely. Payments will be straightforward and secure because customers will not need to carry cards or utilize smartphone apps, nor will they need to use internet banking.
When vouchers are used as payment, the e-RUPI Digital vouchers are thought to be particularly effective. Because it is a voucher-based system, payments are considered safe. Because of its purpose and nature, a virtual money cannot be considered an underlying asset.
Benefits of e-RUPI
Benefits for Corporate and Hospitals:
According to the NPCI website, the e-RUPI system is tremendously advantageous for corporations and hospitals. Employees might be given well-being coupons by companies. The entire process can be controlled electronically thanks to the digital issue of these vouchers. The technique is both safe and non-contact. For hospitals, this way of payment is convenient. For authorization, a verification code is used. When compared to a credit card, e-RUPI redemption requires fewer steps.
Benefits for consumers include:
- Bank accounts are not required.
- The beneficiary is not required to provide any personal information.
- There are two steps to the redemption process.
- Customers do not need to print the voucher because it is entirely digital.
Bank Live with e-RUPI
e-RUPI is now available from 11 banks. The following are the banks:
- Bank of Baroda
- Canara Bank
- Axis Bank
- HDFC Bank
- ICICI Bank
- Indian Bank
- Kotak Bank
- Punjab National Bank
- India’s State Bank
- Union Bank
- Indusind Bank
Application of e-RUPI
Many services will be provided by the government through e-RUPI in the country. It can also be used to leak-proof health-related services. e-RUPI can be used to deliver leak-proof fertilizer subsidies, TB eradication programs, Mother and Child Welfare Programs, Ayushman Bharat, and PMO initiatives. The government is also considering extending this voucher benefit to private-sector employees and businesses.
Frequently Asked Questions
How are E-RUPI and SMS interconnected?
The e-voucher will be sent to you as a text message. To redeem the coupon, all you have to do now is click on the SMS link.
How can e-RUPI be used?
Individuals who have been given an e-RUPI voucher can use it at hospitals and other places. The government can use this system in a variety of ways, including fertilizer subsidies, Ayushman Bharat, and Pradhan Mantri Jan Arogya Yojna.
Are e-RUPI vouchers redeemable anywhere?
e-RUPI vouchers can be used to make health-related payments. Corporations can also provide e-RUPI vouchers to their employees.