What is e-Rupi? Here’s all about India’s new digital payment system

In an official statement of the PMO it was mentioned that since it was prepaid, it assured of timely payment to the service provider without any involvement of an intermediary.

Prime Minister Narendra Modi had announced the launch of e-RUPI, it is a digital payment system that is cashless, contactless, voucher-like, which had been aimed to ease the living, and had been launched at 4:30 pm on August 2, the platform was developed collaboratively by the NPCI, the Ministry of Health and Family Welfare and the National Health Authority.

The e-RUPI would function in the form of an SMS string or a QR based code that would be sent straight to the beneficiary’s phone and would be redeemed at designated centres without any credit or debit card, mobile banking applications, etc. It would eliminate the physical interface and would work like a preloaded, prepaid voucher that could be encashed without the need for cards, internet banking, etc. The service provider payment would be made after the completion of the transaction.

In an official statement of the PMO it was mentioned that since it was prepaid, it assured of timely payment to the service provider without any involvement of an intermediary.

The new system could be well placed in delivering timely and leak-proof transfers under schemes that would cover mother and child welfares, drugs and diagnostics, fertiliser subsidies, tuberculosis eradication, etc, and the leverage of this system could even be beneficial for the private sector for their employee benefits and corporate social welfare programs.

It has been under the NPCI UPI organisation which is private and public sector banks and these entities would be approached by the government agencies with beneficiary details, payment purpose and other information. The voucher would be developed and delivered specifically to the beneficiaries who have used their mobile number for the redemption of the voucher.

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