A new digital payment mode called e-RUPI got launched in India by Prime Minister Narendra Modi on Monday, Aug 2. The new payment mode is powered by the Unified Payments Interface (UPI). Known as a kind of prepaid e-voucher service, it can be used for services like healthcare, child welfare, subsidies, which will be a ‘leak proof method’ to enable the beneficiaries to use the funds allotted for the very purpose. It can also be used by corporates for providing employee benefits to the intended beneficiary employees.
The initiative of e-RUPI is a result of unanimous attempt by the entire digital payments ecosystem in India. The new digital payment mode has been launched by equal contribution by National Payments Corporation of India (NPCI) along with the Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and 11 partner banks including State Bank of India, Punjab National Bank, HDFC Bank and ICICI Banks.
It is similar to a ‘Sodexo Coupon’ used for shopping or the purpose it has been issued to the beneficiary. It is informed that the Indian government wishes to use e-RUPI as a “leak-proof delivery of welfare services” which is seen as a major step in curbing unintended use of the granted funds by the government. The Government with the help of e-RUPI now will be successful to deliver services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.
At present, the Government is providing funds to the needy, however, it doesn’t have the control over use of those funds by the beneficiaries. However, with the presence of e-RUPI, the Government will be empowered to control the use of the funds for the very purpose it has been granted for. It is essentially for a ‘leak proof manner’ of providing monetary support to the beneficiaries.
The beneficiaries can avail e-RUPI from 11 banks across India. It works on the similar line of how a demand draft works. The beneficiary has to collect the e-RUPI and utilise the service for which the e-RUPI has been issued and pay using e-RUPI vouchers.
The e-voucher is issued in the form of a QR code or SMS with the e-RUPI voucher which can be redeemed for the purpose it has been generated. The best part about the e-RUPI is that the QR code or SMS voucher can only be used once by the beneficiary on whose name it has been issued.