NEW DELHI: Prime Minister Narendra Modi launched India's new digital payment system -- e-RUPI -- on Monday. The platform has been collaboratively 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.
What is e-RUPI
e-RUPI is a cashless and contactless instrument for digital payment. It is a QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider.
How it works
It connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary.
Use
e-RUPI is expected to ensure a leak-proof delivery of welfare services. 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 programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc.
Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.
