e-RUPI: What is e-Rupi and how it works, know everything about this new digital payment tool
e-RUPI: Prime Minister Narendra Modi, on August 2, launched e-Rupi as a new tool for cashless and contactless payments. E-Rupee is a digital voucher received by a beneficiary in the form of SMS or QR code on their phone.
For example, suppose the government wants to bear the special treatment of any of its employees in a particular hospital. In that case, it can issue e-rupee vouchers for the prescribed amount through a partner bank.
The employee will get an SMS or QR code on his feature phone/Smartphone. He can avail of his services by going to the designated hospital.
Will work even without payment app and internet banking
Thus, e-Rupee is a one-time contact-less, cashless voucher-based payment method that enables users to redeem vouchers without a card, digital payment app, or internet banking.
It should not be considered the same digital currency that RBI is considering to bring. Instead, an e-Rupee is an individual specific even purpose-specific digital voucher.
How is e-rupee beneficial for the consumer?
The beneficiary doesn’t need to have a bank account, which is a unique feature compared to other digital payment mediums. It ensures a 2 phase process to get an easy, contact-less payment that does not even require sharing of personal details.
Another advantage is that e-Rupee operates on basic phones, so it can be used by people who do not have a Smartphone or in places where the internet connection is weak.
It is expected that e-Rupee will play a significant role in strengthening Direct Benefit Transfer and making it more transparent.
Since there is no need to issue the voucher physically, this will also lead to some cost savings. Apart from this, being an e-Rupee prepaid voucher, the service provider will ensure accurate time payment.
Who has developed the e-rupee?
National Payments Corporation of India (NPCI) has launched this voucher-based payment system to promote cashless transactions.
It has been developed in collaboration with the Department of Financial Services, Ministry of Health and Family Welfare, and National Health Authority.
Which banks issue it?
National Payments Corporation of India has partnered with 11 banks for e-rupee transactions.
These banks are 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.
The apps that take it are Bharat Pay, BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay, and YONO SBI Merchant Pay. More banks and apps that accept e-Rupee are expected to join it soon.
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Where can it be used now?
Initially, the National Payments Corporation of India has tied up with over 1,600 hospitals where e-Rupees can be redeemed. Experts say that its user base is expected to widen in the coming days.
Even the private sector will be able to use it to pass on benefits to their employees. Micro, small and medium industries will also be able to adopt it for business to business transactions.