New Delhi: Prime Minister Narendra Modi is all set to launch a digital payment solution, ‘e-RUPI’, Monday. ‘e-RUPI’ is a cashless and contactless digital payment instrument, which will be delivered to beneficiaries in the form of a QR code and SMS-string-based voucher.
A statement from the Prime Minister’s Office (PMO) called the move another step in the Modi government’s efforts to reduce intermediaries between the government and the beneficiary to ensure “leak-proof delivery of welfare services”.
The one-time payment mechanism has been developed by the National Payment Corporation of India (NPCI), with the support of the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority.
e-RUPI will also serve as a cashless payment solution for Covid-19 vaccination. PM Modi will roll out the first application of e-RUPI for the same.
“It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc,” the statement said.
Even the private sector will be able to leverage these “digital vouchers” for employee welfare and corporate social responsibility programmes, it added.
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What is e-RUPI?
According to the NPCI website, the e-RUPI users will be able to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting UPI e-Prepaid Vouchers.
The e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organisations via SMS or QR code.
Beneficiaries will then be able to make payments with the voucher at merchants even in the absence of a card, a digital payments app, or internet banking.
The voucher is paid for in advance, which ensures timely payment without the involvement of any intermediary, the PMO statement said. “It also ensures that the payment to the service provider is made only after the transaction is completed,” it said.
It is a safe method of payment since it keeps the details of the beneficiary completely confidential.
Corporates will also gain from the launch of the platform as they would be able to transfer benefits to their employees in a hassle-free, cost-effective way. The system will also help the issuer to track if the voucher issued has been redeemed or not.
These are the banks that have the facility to issue e-RUPI vouchers: State Bank of India, HDFC Bank, Axis Bank, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank, and ICICI Bank.
(Edited by Amit Upadhyaya)
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