Prime Minister Narendra Modi has recently launched the e-RUPI platform to promote cashless and contactless payments. Today we will learn about what it is and how it works and who will benefit from it. National Payments Corporation of India (NPCI) in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and partner banks, has launched an innovative digital solution – ‘e-RUPI’.
It will act like a digital voucher. This voucher will be sent directly to the beneficiary of any government scheme in the form of SMS or QR code on his phone. To take advantage of the scheme, the voucher sms or QR code is available, it will have to be redeemed by going to the center associated with that facility. Let's understand this with an example: Suppose the central government wants to give 500 rupees to the farmers to buy fertilizers and manure, then instead of actually giving the money, they will send a voucher of 500 rupees directly to their mobile in the form of SMS or QR code.
Through this platform, the amount given by the government for a perticular scheme will be given to the beneficiary, in such a way that the middlemen will be eliminated and the scheme amount will be not go into the wrong hands. Another advantage of e-RUPI is that it ensures that the given amount will be used only for the given reason, so the beneficiaries will also not be able to misuse the subsidy amount.
Not only consumer and normal public, but other corporates and hospitals can also get benefits from these. As this ensures end to end digital transaction and doesn’t require any physical issuance hence leading to cost reduction, voucher redemption can be tracked by the issuer. This all could possiblly help corporated to do hassle free and contactless payments.
Bank will issue e-vouchers. Currently, only a few big banks like SBI, HDFC and ICICI are allowed issue these e-vouchers. And soon other banks will be allowed to make these e-vouchers.
Anyone can get these e-vouchers made. For this you have to go to the bank. If you want, you can make an e-voucher of a gift company to give it as a gift on your friend's birthday or any other occasion. This will ensure that your friend will be able to use that voucher only to buy gifts and nothing else. If the voucher is not used on time, its amount will be sent back to the government or to the account of the person who created the voucher. Right now, after the launch of this platform, the situation is not clear regarding the redemption of e-vouchers.
All this information is available on the website of NPCI and all upcoming announcements related to this will be made on the respective website as soon as any new information comes, we will inform you.