What Is e-RUPI And How Does It Work?

What Is e-RUPI, And How Does It Work?

Prime Minister Narendra Modi launched e-RUPI, a cashless and contactless instrument for digital payments; The one-time payment mechanism aims to stop leakages in government welfare schemes and ensures that the benefits reach those they are meant to be. Since the benefits are transferred on mobile phones of beneficiaries via QR codes or SMS, there is no possibility of them being misused. To make the system hassle-free for users, e-RUPI does not require any physical interface for transactions. It is considered safe as it's prepaid.

How Does it work?

According to a statement from the PMO, now beneficiaries can receive a QR code or an SMS-based electronic voucher on their mobile phones. They do not require a card, digital payment app, or even internet banking access to redeem an e-voucher when availing of a service. For example, You bought a product and received a voucher on the purchase. With e-RUPI, you do not need to carry the voucher in physical form. The voucher can be sent to your mobile phone in the form of a QR code or as an SMS.

PM Modi launches e-RUPI 10 benefits of the new digital payment platform

..Some of the benefits of e-RUPI are:

1) e-RUPI is a cashless and contactless digital payment.
2) Connects service sponsors and beneficiaries digitally.
3) Ensures leak-proof delivery of various welfare services.
4) It is a QR code or SMS string-based e-voucher delivered to the mobile of the beneficiaries.
5) The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app, or internet banking access at the service provider

6) e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
7) It also ensures that the payment to the service provider is made only after the transaction is completed.
8) Being pre-paid in nature assures timely payment to the service provider without the involvement of any intermediary.
9) Apart from regular payments, it can also provide medicines and nutritional assistance under maternal and child welfare schemes, TB eradication programs, medicines, and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidy, etc.
10) These digital vouchers can also be used by the private sector for its employee welfare and corporate social responsibility programs,

Reason for emerging -Rupi

The Prime Minister said, every month, UPI transactions are setting new records. He said, in July, India has witnessed over 300 crore rupee UPI transactions. Additionally, the RuPay card has been launched in Singapore and Bhutan. Mr. Modi said, at present, there are 66 crore RuPay cardholders in India, and transactions worth thousands of crore rupees are being done through it.

The Prime Minister said e-RUPI is a futuristic reform that is being initiated at the time when the country is to celebrate Bharat ki Azadi ka Amrit Mahotsav. He said e-RUPI vouchers are purpose-specific and will ensure that the benefits of the voucher are availed for the service it is meant for. Mr. Modi said that if any organization wants to help people in their treatment or education or any other purpose, they will be able to give e-RUPI instead of cash.