Digital Payment System - eRupi


   Prime Minister Shri Narendra Modi announced the introduction of e-RUPI, a cashless and contactless digital payment system, on August 2nd. The eRUPI voucher, according to the Prime Minister, will play a significant role in making Direct Benefit Transfer (DBT) more successful in digital transactions in the country and will offer digital governance a new dimension. He explained that eRUPI symbolizes India's success in integrating technology into people's lives.

·What exactly is e-RUPI and how does it work?

e-RUPI is a digital voucher that a recipient receives in the form of an SMS or QR code on his phone. It's a pre-paid voucher that he or she may use at any location that accepts it.

For example, if the government wants to fund certain treatment for certain staff, the government can use a partner bank to issue eRUPI coupons for the appropriate amount. On his or her featured phone or smartphone, the employee receives an SMS or QR code. He or she can travel to the designated hospital, get the services, and pay using the e-RUPI voucher that was sent to his phone.

Therefore, eRUPI is a unique, contactless and non-cash coupon-based payment method that allows users to redeem coupons without using a card, digital payment application or online banking.


·What are the benefits of e-RUPI to the consumer?

The beneficiary does not need to have a bank account to use e-RUPI, which is a considerable benefit over other digital payment options.

It provides a simple, contactless two-step redemption process that does not require to disclose personal information.

Another advantage is that eRUPI can be used not only on smartphones but also on ordinary mobile phones, and can be used by people without smartphones and places without the Internet.


·Who is the creator of the e-RUPI?

The National Payments Corporation of India (NPCI), which oversees India's digital payment ecosystem, has launched eRUPI, a voucher-based payment system aimed at facilitating cashless transactions.

The National Health Authority, the Department of Financial Services, and the Ministry of Health and Family Welfare collaborated on the project.

·Which banks are e-RUPI issuers?

For e-RUPI transactions, NPCI has collaborated with 11 banks. Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Union Bank of India are among the banks in the country.

Bharat Pe, BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay, and YoNo SBI Merchant Pay are the acquiring apps.

The e-RUPI project is likely to attract more banks and purchasing apps in the near future.


·Where can you utilise e-RUPI now?

NPCI has partnered with over 1,600 hospitals to offer e-RUPI redemption. According to experts, the user base of e-RUPI is anticipated to grow in the coming years, with the private sector utilising it to offer employee benefits and MSMEs embracing it for B2B transactions.


e-RUPI should not be confused with the Reserve Bank of India's proposed Digital Currency. e-RUPI, on the other hand, is a person- specific and even purpose-specific digital voucher.


This will benefit the citizens of India since the money will not end up in the wrong hands or be split up in between the agents.

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