Prime Minister Narendra Modi launched a new digital payment mode on Monday – e-RUPI. The digital voucher is intended to ensure that the state’s cash benefits reach the citizens directly in a “leak-proof” manner. “Today, the country gives digital governance a new dimension. The e-RUPI voucher will play a big role in making DBT more effective in digital transactions in the country. This will help everyone with targeted, transparent and leak-free delivery, ”said Prime Minister Narendra Modi.
As part of this new payment system, beneficiaries will receive an electronic voucher or coupon that can be used without online banking, payment applications and other traditional payment methods. In a simpler language, e-RUPI, the new digital payment mode, is an e-voucher based on QR codes or SMS. The digital coupons, similar to Sodexo coupons, were developed by the National Payments Corporation of India in collaboration with the Ministry of Financial Services, the Ministry of Health and Family Welfare and the National Health Authority.
How does the digital e-RUPI payment work
“In a way, e-RUPI is both person and purpose specific. For the purpose for which any help or benefit is given, it will be used to ensure that eRUPI will ensure, “said PM Modi at the introduction of the new digital payment mode. The government will send the voucher directly to the mobile phone. Number of beneficiaries, instead of transferring the money to bank accounts. Before e-RUPI coupons are sent out, the citizen’s mobile number and identity are verified digitally without a physical interface, “said a message from the Prime Minister.
e-RUPI Digital Payment: Advantages
The e-RUPI payment mode is not linked to an app or mobile banking. So anyone with any phone can access these electronic coupons. The user can redeem the SMS voucher with the service provider. The payment to the provider will only be processed after the transaction has been completed. The prepaid nature of this payment ensures timely payment to the service provider without the involvement of an intermediary.
Where e-RUPI Digital Payment is used
The government wants to use the e-RUPI payment mode to provide the financial benefits under Direct Benefit Transfer (DBT) programs such as Mantri Jan Arogya Yojana, fertilizer subsidies, etc. The private sector can also use digital e-RUPI vouchers in the Use them as part of their employee welfare and corporate social responsibility programs.
“Not just the government, if a general organization or organization wants to help someone with their treatment, education, or other work, they can give e-RUPI instead of cash. This will ensure that the money he gives is used for the same work that that amount was given, ”added PM Modi.
List of banks using e-RUPI digital payments
There are currently 11 public and private banks supporting this new digital payment mode. State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Axis Bank and Bank of Baroda fully support e-RUPI coupons. These banks can both issue and redeem e-RUPI coupons.
Banks like Canara Bank, InsusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India can only issue e-RUPI coupons. Digital voucher redemption is not available with these lenders.
“The concept of the electronic voucher takes this vision of good governance into account. It is expected to be a revolutionary initiative towards leak-proof provision of social benefits, ”the center said.
Read all the latest news, breaking news and coronavirus news here