As India is moving towards cashless payment options, the Government of India has launched a new electronic voucher-based digital payment system on 2nd August 2021. The event in which Prime Minister Narendra Modi launched the new e-Rupi app said that the app will play a significant role in making digital payments effective in the nation as well as give new dimensions to the existing digital governance.
The e-Rupi app is all set to provide users with a transparent and leak-proof delivery. The app will allow us to make digital payments through e-Rupi at any time and any place in the country. The QR code or an SMS string will help in sending payment across the desired parties. In other words, e-Rupi is like a tech symbol of India which seek connecting people’s lives with new digital technologies.
E-Rupi is a QR code or SMS string-based e-voucher that can be delivered to the beneficiaries’ mobile phones. This seamless digital payment system can make users experience a faster pace while redeeming their payment vouchers from the pre-determined service provider without holding a card, internet banking access or any form of digital payment app.
Who developed the e-Rupi app?
E-Rupi payment app has been developed by the National Payments Corporation of India that collaborated with the department of the National Health Authority, Financial Services and Health ministry.
How to use e-RUPI vouchers
Just like digital gift vouchers, e-Rupi is like an e-gift card that is prepaid. The card codes can be shared through a QR code or SMS. The vouchers can be purpose-specific or person-to-person based. Even if you do not have a bank account or other digital payment app such as PAYTM, you get benefits from e-Rupi.
What’s the purpose of e-RUPI?
The e-Rupi app is like a revolutionary step taken by the Government of India to ensure a leak-proof payment delivery for the smooth flow of welfare services that intended beneficiaries seek. The digital vouchers can be used for accessing or delivering services that are under various schemes on nutritional and drug support, TB eradication program, Mother and child welfare schemes, Ayushman Bharat Yojana, Pradhan Mantri Jan Arogya Yojna, drugs and diagnostics schemes besides any others. Even private sector companies can make use of the e-Rupi app for their CSR initiatives and employee benefit schemes as said by the Prime Minister.
How will e-Rupi vouchers be issued?
The voucher issuance system has been developed by the NPCI itself in the UPI platform. This is the reason many banks have been linked with the payment system. The banks that need to be incorporated plays a major role like an issuing institution. With the e-Rupi payment system, nutritional assistance and medicines can be provided under child welfare and maternal schemes. TB eradication program participants will be directly reached through the app.
To make the system work, the beneficiary will have to add his/her mobile number. The voucher issued through the app can be used by the person to whom the voucher is been allotted rather than other people demanding the same. The vouchers can be used by the government too for issuing money in regards to fertilizer subsidy, Ayushman Bharat Yojna or related schemes.
List of banks that are associated with e-RUPI
InfrasoftTech is the company that provides e-Rupi technology stack to the listed banks by assisting them in implementing the new technology. The company is all set to help the banks starting from its integration process into the existing banking system to the deployment of vouchers to the targeted beneficiaries. At present, InfrasoftTech is working with 2 banks out of 11 banks according to NPCI. The two banks are the Bank of Baroda and Punjab National Bank. Many more banks will be onboarded with time for issuing e-Rupi vouchers.
Many governments and corporates have approached their partner banks with beneficiaries’ details and the purpose behind making payments. To date, 11 banks, both private and public sector banks will support this new payment option. ICICI Bank, State Bank of India, Axis Bank, Punjab National Bank and Bank of Baroda will take part in both issuance and voucher redemption facilities related to the e-Rupi app. IndusInd Bank, Kotak Mahindra Bank, Indian Bank, Canara Bank and Union Bank of India can issue the e-coupons only for now.
Why e-Rupi vouchers are safe to use?
The e-Rupi voucher can be regarded safe payment platform in the digital realm since the transaction will be processed in a government-approved system. The increased number of digital payment systems in India and the growing popularity of cryptocurrencies are some of the reasons RBI has expressed its views regarding e-Rupi as a successful digital payment system in India.