Getty ImagesThe Reserve Bank of India (RBI) has increased the maximum amount of e-RUPI from Rs 10,000 currently to Rs 1 lakh. It has been further announced that the e-RUPI voucher can be used more than once until the amount is fully redeemed. The announcement has been done to ensure better delivery of benefits of central and state government schemes. This has been announced in the RBI monetary policy review here today. Beneficiaries can receive e-RUPI even without having a bank account and also on feature phones sans internet connection. Further, the delivery is contactless.
As per the Statement on Development and Regulatory Policies issued by the central bank: The e-RUPI prepaid digital voucher, developed by the National Payments Corporation of India (NPCI) and launched in August 2021, is a person-specific and purpose-specific cashless voucher and can be used by individuals, corporates or governments. e-RUPI runs on the UPI platform and has a cap of Rs 10,000/- per voucher and each voucher can be used /redeemed only once. e-RUPI vouchers are presently being used largely for COVID-19 vaccination purposes. There are other use cases being actively considered by various State Government and Central Government Ministries/Departments.
To facilitate digital delivery of various government schemes to the beneficiaries, it is proposed to increase the cap on amount for e-RUPI vouchers issued by Governments to Rs 1,00,000/- per voucher and allow use of the e-RUPI voucher multiple times (until the amount of the voucher is completely redeemed). Necessary instructions to NPCI will be issued separately.
What is e-Rupi?
e-RUPI is basically a digital voucher that a beneficiary gets on his mobile phone as an SMS or QR code. It is a pre-paid voucher, which he/she can go ahead and redeem it at any centre that accepts it.
For example, if the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank. The employee will receive an SMS or a QR Code on his feature phone/smartphone. He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his/her phone.
It is a one-time contactless, cashless voucher-based mode of payment that helps individuals redeem the e-RUPI voucher without a card, digital payments app, or internet banking access.
Advantages of e-RUPI for individuals
e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature as compared to other digital payment forms. It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.
Another advantage is that e-RUPI is operable on basic phones also, and hence it can be used by persons who do not own smartphones or in places that lack an internet connection.
e-RUPI is expected to play a major role in strengthening Direct-Benefit Transfer to individuals from various governments and making it more transparent. Since there is no need for the physical issuance of vouchers, it will also lead to some cost savings as well.
As per the Statement on Development and Regulatory Policies issued by the central bank: The e-RUPI prepaid digital voucher, developed by the National Payments Corporation of India (NPCI) and launched in August 2021, is a person-specific and purpose-specific cashless voucher and can be used by individuals, corporates or governments. e-RUPI runs on the UPI platform and has a cap of Rs 10,000/- per voucher and each voucher can be used /redeemed only once. e-RUPI vouchers are presently being used largely for COVID-19 vaccination purposes. There are other use cases being actively considered by various State Government and Central Government Ministries/Departments.
To facilitate digital delivery of various government schemes to the beneficiaries, it is proposed to increase the cap on amount for e-RUPI vouchers issued by Governments to Rs 1,00,000/- per voucher and allow use of the e-RUPI voucher multiple times (until the amount of the voucher is completely redeemed). Necessary instructions to NPCI will be issued separately.
What is e-Rupi?
e-RUPI is basically a digital voucher that a beneficiary gets on his mobile phone as an SMS or QR code. It is a pre-paid voucher, which he/she can go ahead and redeem it at any centre that accepts it.
For example, if the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank. The employee will receive an SMS or a QR Code on his feature phone/smartphone. He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his/her phone.
It is a one-time contactless, cashless voucher-based mode of payment that helps individuals redeem the e-RUPI voucher without a card, digital payments app, or internet banking access.
Advantages of e-RUPI for individuals
e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature as compared to other digital payment forms. It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.
Another advantage is that e-RUPI is operable on basic phones also, and hence it can be used by persons who do not own smartphones or in places that lack an internet connection.
e-RUPI is expected to play a major role in strengthening Direct-Benefit Transfer to individuals from various governments and making it more transparent. Since there is no need for the physical issuance of vouchers, it will also lead to some cost savings as well.
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