Why In News?
Taking another imperative major in the world of the digital economy, Prime Minister Narendra Modi is all set to launch e-RUPI, an electronic voucher-based and purpose-specific digital payment system on 2nd August 2021
- The digital initiative is one of the programs launched over the years to limit touchpoints between the government and the beneficiary to ensure that all the benefits of the program reach its intended person in a targeted and leak-proof manner, the statement added.
Understanding e-RUPI
Developed by the National Payments Corporation of India (NPCI) along with the Department of Financial Services, Union Ministry of Health & Family Welfare, and National Health Authority, e-RUPI is a QR code-based or SMS string-based e-Voucher, which is delivered to the beneficiaries via mobile. The beneficiary by using this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app, or internet banking access, at the service provider.
Eliminating the middlemen
The person and purpose-specific digital payment solution platform connects the sponsors of the services with the beneficiaries and service providers in a digital manner while ensuring that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, e-RUPI assures timely payment to the service provider without the involvement of any intermediary.
How to use e-RUPI vouchers
These vouchers are like e-gift cards, which are prepaid in nature. The code of the cards can be shared either via SMS or the OR code can be shared. These e-vouchers will be person and purpose-specific. For example, if you have an e-RUPI voucher for Covid-19 vaccine, then it has to be redeemed for vaccines only.
How is an e-RUPI voucher different from other online payment applications?
E-RUPI is not any platform. It is a voucher meant for specific services. E-RUPI vouchers are purpose-specific and even if one does not have a bank account or a digital payment app or a smartphone can benefit from these vouchers. That is the difference.
These vouchers will be used mostly for health-related payments. Corporates can issue these vouchers for their employees. The Centre had earlier said it would bring in an option for vaccine e-voucher, where one can buy an e-voucher for vaccination in a private hospital and can gift it to another.
The person who is buying the vouchers and issuing them to others can track the utilization of the vouchers.
Privacy is another issue as the beneficiaries won't have to share their personal details.
How to redeem
No card or hard copy of the voucher is needed for redeeming these. The QR code received via message is enough.
List of banks that are live with e-RUPI
According to National Health Authority, eight banks are already live with e-RUPI, including State Bank of Inia, HDFC, Axis, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank, ICICI Bank.
Where can e-RUPI be used?
As a part of the Indian Government’s Digital India venture, the revolutionary initiative will ensure a leak-proof delivery of welfare services. The platform can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies among others.
Notably, even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.
Source - News on Air
