Prime Minister Narendra Modi launched a new digital payment mode on Monday – e-RUPI. The digital voucher is intended to ensure that the state’s cash benefits reach the citizens directly in a “leak-proof” manner. As part of this new payment system, beneficiaries will receive an electronic voucher or coupon that can be used without online banking, payment applications and other traditional payment methods.
In a simpler language, e-RUPI, the new digital payment mode, is an e-voucher based on QR codes or SMS. The digital coupons, similar to Sodexo coupons, were developed by the National Payments Corporation of India in collaboration with the Ministry of Financial Services, the Ministry of Health and Family Welfare and the National Health Authority.
How does the digital e-RUPI payment work
The government will send the voucher directly to the beneficiary’s cell phone number instead of transferring the cash to bank accounts. Before the e-RUPI coupons are sent, the mobile phone number and the identity of the citizen are checked first. “E-RUPI connects the sponsors of the services in a digital way without a physical interface with the beneficiaries and service providers,” said a statement from the Prime Minister.
e-RUPI Digital Payment: Advantages
The e-RUPI payment mode is not linked to an app or mobile banking. So anyone with any phone can access these electronic coupons. The user can redeem the SMS voucher with the service provider. The payment to the provider will only be processed after the transaction has been completed. The prepaid nature of this payment ensures timely payment to the service provider without the involvement of an intermediary.
Where e-RUPI Digital Payment is used
The government wants to use the e-RUPI payment mode to provide the financial benefits under Direct Benefit Transfer (DBT) programs such as Mantri Jan Arogya Yojana, fertilizer subsidies, etc. The private sector can also use digital e-RUPI vouchers in the Use them as part of their employee welfare and corporate social responsibility programs.
List of banks using e-RUPI digital payments
There are currently 11 public and private banks supporting 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 coupons. These banks can both issue and redeem e-RUPI coupons.
Banks like Canara Bank, InsusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India can only issue e-RUPI coupons. Digital voucher redemption is not available with these lenders.
“The concept of the electronic voucher takes this vision of good governance into account. It is expected to be a revolutionary initiative towards leak-proof provision of social benefits, ”the center said.
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