E- RUPI- ALL WE NEED TO KNOW!
WHAT IS E-RUPI?
HOW DOES IT WORK?
E-rupi is an electronic voucher-based digital payment system launched by Prime Minister Narendra Modi on 2nd August of this year.
E-rupi is developed by the National Payments Corporation of India(a.k.a NPCI), Department of Financial Services, Ministry of Health and family welfare and the National Health Authority.
This payment mode will be without any physical interference, as E-rupi will connect the sponsors of the services with the payees and service providers in a digital mode. The code for the transaction will be delivered to the mobile phones of beneficiaries in the form of SMS or a QR Code.
So, E-rupi is a cashless and contactless mode of digital payment. It can be called a prepaid gift voucher that can be redeemed at specific accepting centres. What specific means here?
This mode of payment will be person-specific and purpose-specific. For example, if someone has an E-rupi voucher for playing a game on PlayStation, then it can be redeemed for only playing games on PlayStation.
WHAT IS THE MECHANISM OF E-RUPI
Both Private and Public banks will issue vouchers. 8 eight banks have already started issuing vouchers and they include State Bank of India, HDFC Bank, Punjab National Bank, Bank of Baroda, ICICI Bank, IndusInd Bank, Canara Bank and Axis Bank.
For issuing a voucher, any corporate or government agency has to contact the partner banks, and they have to carry the details of the person and the purpose for which payments have to be made.
Then the beneficiaries(who will receive money) will be identified using their mobile number and a voucher will be allocated by the bank in the name of the given beneficiary and will be delivered to the beneficiary.
APPLICATIONS OF E-RUPI
E-Rupi can also be used for the following services-
- To provide drugs and nutritional support under Mother and Child Welfare Schemes
- Under TB eradication programmes
- For Drugs and Diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana
- For providing the fertiliser Subsidies
- The Private sector can also use these digital vouchers, in giving salaries, in giving bonuses etc.
BENEFITS OF E-RUPI
- It is prepaid and thus there will be no delay in the payment of the beneficiary.
- There is no intermediary between the payment of beneficiary and depositor.
- There is no physical interference required.
- These vouchers can be redeemed even without any credit or debit card, no mobile phone or without internet banking.
- In this, the details of the beneficiary will remain confidential.
NATIONAL PAYMENT CORPORATION OF INDIA(NPCI)
Previously, in the article we have used the name of the organization “NPCI”, let’s know about NPCI. National Payment Corporation of India( a.k.a NPCI) was established in 2008.
According to the official Website of NPCI – “National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.”
It is assimilated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).
It’s aim is to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems and is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.