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PM Modi launches new UPI payment mode called e-RUPI: 10 things to know
Gadgets Now | Debashis Sarkar02 Aug, 2021, 06:25PM IST
What is e-RUPI
The new e-RUPI service is basically a prepaid voucher that can be issued from banks directly to citizens after verifying mobile number and identity. Instead of putting cash in someone’s bank account, a prepaid e-RUPI voucher will be delivered in the form of a QR code or SMS string-based e-voucher to the beneficiary’s mobile number.
How does e-RUPI work
You can get e-RUPI vouchers from 11 banks across India. It’s a prepaid voucher and works similar to demand drafts. Once the voucher is issued, the beneficiary will get a QR code or SMS with the e-RUPI voucher that can be redeemed for the purpose it has been generated. This QR code or SMS voucher can be used only once by the person on whose name it has been issued.
No need for bank account, online banking, apps, etc for e-RUPI
This QR code or SMS voucher can be used only once by the person on whose name it has been issued. The beneficiary can redeem the voucher without a card, digital payments app or internet banking access, at the service provider.
e-RUPI vouchers can be used only for the purpose it has been issued
If an e-RUPI voucher is generated to pay money for vaccine or medicine then it can be used only for that purpose. The entire e-RUPI platform is highly-targeted and can be only used for making payment for the purpose it has been issued.
Support for more services coming to e-RUPI platform
The purpose of this voucher is to make sure that the money that has been given to a beneficiary for a certain purpose is being used for the same purpose only. With bank transfers or cash, you can never be sure whether the money is being used for the desired purpose or not. The government said that support for more services will be added to e-RUPI going forward.
What is the need for e-RUPI
The purpose of this new payment mechanism is to ensure that the government can extend monetary support directly to citizens in a “leak-proof manner” in the form of prepaid e-voucher. Transparency is the key objective of this payment mode. Also, the payment can only be processed after the service has been provided to the beneficiary.
How can e-RUPI be used
The government wants to use e-RUPI as a “leak-proof delivery of welfare services” that can used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies and more.
Even corporates can use e-RUPI for providing employee benefits
The private sector can use e-RUPI vouchers as part of their employee welfare and corporate social responsibility programmes. Your office may issue e-RUPI vouchers to cover healthcare, education, etc and for CSR activities too. The concept is similar to how travel coupons or meal passes work at your office.
Which banks are supporting e-RUPI
There are 11 banks supporting e-RUPI right now. Note that some banks can only issue e-RUPI vouchers but cannot accept them. Thankfully, major banks like State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank and others are fully supporting e-RUPI for issuing e-RUPI coupons as well as redeeming them.
-Banks that are fully supporting e-RUPI: State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Axis Bank and Bank of Baroda.
-Banks that will only issue e-RUPI coupons: Canara Bank, Indusind Bank, Indian Bank, Kotak Bank and Union Bank of India.
Who has made e-RUPI
The entire digital payments ecosystem in India has come together to enable e-RUPI. National Payments Corporation of India (NPCI) along with the Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and 11 partner banks including State Bank of India, Punjab National Bank, HDFC Bank and ICICI Banks has launched ‘e-RUPI’.