Published on: August 6, 2021
What : Electronic voucher based digital payment system
Developed by : National Payments Corporation of India (NPCI)
What is in news : Was launched by PM recently
How does it work :
- Connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface
- Cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS-string or a QR code
- Essentially be like a prepaid gift-voucher that will be redeemable at specific accepting center’s without any credit or debit card, a mobile app or internet banking
- How will these vouchers be issued: NPCI on its UPI platform has onboarded banks that will be the issuing entities
- Any corporate or government agency will have to approach the partner banks, which are both private and public-sector lenders, with the details of specific persons and the purpose for which payments have to be made.
- The beneficiaries will be identified using their mobile number and a voucher allocated by a bank to the service provider in the name of a given person would only be delivered to that person.
Significance of e-RUPI
- Leak-proof delivery of welfare services
- Can also be used for delivering services under schemes meant for providing drugs and nutritional support
- Private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes
- Potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital currency.