What is e-RUPI digital currency?

National Payments Corporation of India (NPCI) in association with the 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’ on August 2, 2021. ‘e-RUPI’ is in essence, like a prepaid voucher except that the voucher is entirely digital and the payments will be authorised by institutions like the government or banks. This contactless payment voucher system relies on mobile phones and is intended to be a seamless, one-time payment mechanism.   ‘e-RUPI’ voucher would be delivered to the beneficiaries for a specific purpose or activity by any organization or Government through a QR code or an SMS string that beneficiaries of the currency will use to authenticate payments. A beneficiary is to receive a QR code or SMS string-based e-voucher on his or her mobile phone which can be redeemed at the service provider. This contactless e-RUPI is easy, safe, and secure as it keeps the details of the beneficiaries completely confidential. The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher. The advantage of using e-RUPI is that voucher redemption can be tracked by the issuer.

Uses of e-RUPI in Government Schemes

The entire e-RUPI platform is highly targeted and can be used only for making payments for a specific purpose such as health services, child welfare, medicines, fertilizer subsidies, etc. for which it has been issued. A beneficiary of the Government scheme is to receive a QR code or SMS string-based e-voucher on his or her mobile phone which can be redeemed at the service provider. The users will be able to redeem the voucher without a card, digital payments app internet banking access, or other traditional payment modes, at the merchants accepting e-RUPI.

Use of e-RUPI by Corporates:

Corporates can use e-RUPI for the well-being of their employees. The ‘e-RUPI’ is an end-to-end digital transaction and doesn’t require any physical issuance hence leading to cost reduction to the company. Further, the voucher redemption can be tracked by the issuer. The ‘e-RUPI’ distribution is quick, safe & contactless voucher distribution in the COVID-19 situation.

Use of e-RUPI for hospitals

Easy & Secure – The e-RUPI voucher is authorized via a verification code. Hence it is easy and secure to accept it. The voucher can be redeemed easily in a few steps. Chances of payment decline are remote as the amount is pre-blocked for a specific purpose. Handling of cash or card collection is not required.

Benefits of e-RUPI to the Consumer/Government Beneficiaries

No need to carry a printout of the voucher. Only 2 steps are required for redemption of the e-RUPI voucher through mobile phone. No need to have a digital payment app or a bank account. The personal details of the beneficiary will not be disclosed at the time of redemption.

Participating banks

It said that among the banks that are live with e-RUPI is Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Indian Bank,  Kotak Bank, Punjab National Bank, State Bank of India, Union Bank of India

Source: NPCI

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