Prime Minister Narendra Modi on Monday launched a new digital payment mode — e-RUPI. The digital voucher aims to ensure that government’s monetary benefits directly reach citizens in a ‘leak-proof’ manner. “Today the country is giving a new dimension to digital governance. e-RUPI voucher is going to play a huge role in making DBT more effective in digital transactions in the country. This will help everyone in Targeted, Transparent and Leakage Free Delivery," Prime Minister Narendra Modi said.
Under this new payment system, the beneficiaries will get an electronic voucher or coupon that can be used without online banking, payment applications and other traditional payment modes. In a simpler language, e-RUPI, the new digital payment mode, is a QR code or SMS string-based e-voucher. The digital coupons, similar to Sodexo vouchers, have been developed by the National Payments Corporation of India in collaboration with the department of financial services, ministry of health and family welfare and national health authority.
How will e-RUPI Digital Payment Work
“e-RUPI, in a way, is Person as well as Purpose Specific. For the purpose for which any help or any benefit is being given, it will be used for that, this eRUPI is going to ensure," PM Modi said while introducing the new digital payment mode. The government will send the voucher directly to the mobile number of the beneficiaries, instead of putting the cash in bank accounts. The mobile number and identity of the citizen will be verified first before sending the e-RUPI coupons. “e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface," the Prime Minsiter’s Office said in a notification.
e-RUPI Digital Payment: Benefits
The e-RUPI payment mode is not related to any app or mobile banking. So anyone with any phone can access these electronic coupons. The user can redeem the SMS voucher at the service provider. The payment to the provider will processed only when the transaction is complete. The prepaid nature of this payment ensures timely payment to the service provider without involvement of any intermediary.
Where e-RUPI Digital Payment will be Used
The government wants to use e-RUPI payment mode to deliver the financial benefits under Direct Benefit Transfer (DBT) schemes such as providing drugs and nutritional support under mother and child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc. The private sector can also use e-RUPI digital vouchers as part of their employee welfare and corporate social responsibility programmes.
“Not only the government, if any general organisation or organization wants to help someone in their treatment, in their education or for any other work, then they will be able to give e-RUPI instead of cash. This will ensure that the money given by him is used for the same work for which that amount has been given," PM Modi added.
List of Banks Using e-RUPI Digital Payment
At present, there are 11 public and private sector banks that support this new digital payment mode. State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Axis Bank and Bank of Baroda fully support e-RUPI vouchers. Both issuance and redemption of e-RUPI coupons are available at these banks.
Banks including Canara Bank, InsusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India can only issue e-RUPI coupons. Reedeming digital vouhcer option is not available at these lenders.
“The concept of electronic voucher takes forward this vision of Good Governance. It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services," the Centre said.
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