What is e-RUPI and how does it function?
Story highlights
e-RUPI is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS-string or a QR code.
Prime Minister Narendra Modi introduced e-RUPI, a cashless and contactless digital payment system, on Monday.
The one-time payment system attempts to eliminate leaks in government assistance programmes and ensure that funds reach the intended recipients.
The platform would be a person-specific and purpose-specific payments system created 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.
How will e-RUPI function?
e-RUPI is a cashless and contactless digital payment system.
It is a QR code or SMS string-based e-Voucher that is sent to the beneficiaries' mobile phones.
Users of this seamless one-time payment mechanism will be able to redeem the voucher at the service provider without the use of a card, digital payments app, or online banking access.
It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.
e-RUPI establishes a digital link between service sponsors and beneficiaries and service providers, eliminating the need for a physical interface.
It also guarantees that the service provider is only paid once the transaction has been completed.
Because it is pre-paid, it ensures prompt payment to the service provider without the need for a middleman.
It is intended to be a game-changing effort aimed at assuring the delivery of leak-proof social services.
These digital coupons can be used by the private sector as part of employee welfare and corporate social responsibility programmes.
(With inputs from agencies)