PM Modi launches e-RUPI contactless payment voucher; check what it is, how to get benefits and more
The newly announced e-RUPI digital payment mechanism is expected to speed up transactions between service providers and beneficiaries and reduce leaks in the government welfare schemes.
In what can be termed as the first attempt at creating an official e-voucher for digital payments in the country, Prime Minister Narendra Modi has launched the e-RUPI system in the country. The one-time payment mechanism will allow users to redeem a voucher without using a card, a digital payments app and it can be done without any access to an internet banking service.
How e-RUPI works? Instead of using existing internet banking and payment mechanisms that require an app or online service to complete a transaction, the new e-RUPI digital payment system uses a QR (Quick Response) code or an SMS string-based e-voucher. “e-RUPI voucher is not just purpose but person-specific also, ensuring benefit is used for intended purpose only,” Prime Minister Narendra Modi said on Monday. "e-RUPI will play a role in boosting digital transactions & DBT in the country. This will help everyone in targetted, transparent & leakage free delivery," he explained.
How to access e-RUPI linked funds? The system is designed to quickly transfer funds to a service provider, according to the government. Instead of relying on a physical interface, beneficiaries can avail of services and the transaction is completed without any intermediate service. The details of beneficiaries will be kept confidential and they do not even have to share their personal data to redeem the e-voucher, according to NPCI. Also, transactions between a service provider and a beneficiary will be faster, thanks to pre-paid nature of the payment mechanism, where the funds are already pre-blocked. This means that funds can be accessed without any delay for processing from intermediaries. The government has also stated that the e-RUPI system should help in providing a mechanism to supply welfare services from the government. This is due to the verification code mechanism built into the e-RUPI voucher. Meanwhile, the issuer can also track the redemption of the voucher.
The e-RUPI system has been created by the National Payments Corporation of India in collaboration with multiple banks and the Department of Financial Services, National Health Authority, Ministry of Health and Family Welfare. “e-RUPI is an example of how India is moving forward & connecting people in the 21st century with the help of advanced technology. I'm glad that it has started in the year when India is celebrating its 75th year of Independence,” the Prime Minister stated during the launch event.
Which banks are linked to e-RUPI system? According to the NPCI, the names of the banks that have signed up for the program are as follows, Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Indian Bank, Kotak Bank, Punjab National Bank, State Bank of India and Union Bank of India. However, at the time of publishing this story, Canara Bank, IndusInd Bank, Indian Bank, Kotak Bank and Union Bank of India are listed as e-RUPI issuers but not as acquirers of the digital voucher.
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