To take steps towards having a digital currency in the country, an electronic voucher-based digital payment system “e-RUPI” will be launched.
Context
To take steps towards having a digital currency in the country, an electronic voucher-based digital payment system “e-RUPI” will be launched.
About e-RUPI
- e-RUPI is a cashless and contactless mode of digital payments medium, which will be delivered to beneficiaries' mobile phones in form of an SMSstring or a QR code.
- This has been developed by the National Payments Corporation of India (NPCI), the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority.
- The payment system will be a person-specific and purpose-specific system.
- This will be like a prepaid giftvoucher that will be redeemable without any credit or debit card, a mobile app, or internet banking at specific accepting centers.
How these vouchers will be issued?
- The system is built by NPCI on its UPI platform and has onboarded banks which will be the issuing entities.
- Any corporate or government agency will approach the partner banks, either private or public-sector lenders, with the details of specific persons and the purpose for which payments have to be made.
- The beneficiaries will be identified by their mobile number and a voucher will be allocated by a bank to the service provider.
Significance of e-RUPI
- The launch of e-RUPI could potentially highlight the existing gaps in digital payments infrastructure which isnecessary for the success of the future digital currency.
- e-RUPI is still backed by the existing Indian rupee as an underlying asset and the specificity of the purpose makes it different from a virtual currency and makes it closer to a voucher-based payment system.
