RBI by the end of this month is going to launch India’s first Digital Currency “E Rupee” which will be based on token or account.
E Rupee Will be Similar to present paper currency. This will be accepted for any transaction and can be stored in accounts.
What is e-RUPI and how it works?
e-RUPI is basically a digital voucher which a beneficiary gets on his phone in the form of an SMS or QR code. It is a pre-paid voucher, which he/she can go and redeem it at any centre that accepts its.
For instance, the government can use a partner bank to create an e-RUPI voucher for the appropriate amount if it wishes to pay for a specific employee’s treatment in a particular hospital. On his cellphone or Smartphone, the employee will get an SMS message or a QR code. He or she may visit the designated hospital, get the services, and pay using the e-RUPI voucher that was sent to his phone.
As a result, e-RUPI is a one-time contactless, cashless voucher-based payment method that enables customers to use their vouchers without a card, a digital wallet, or online banking.
How is e-RUPI beneficial to the Consumer?
e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature as compared to other digital payment forms. It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.
What benefits accrue to the Service Providers?
Being a prepaid voucher, e-RUPI would assure real time payments to the service provider.
Who has developed the e-RUPI?
To encourage cashless purchases, the National Payments Corporation of India (NPCI), which manages India’s digital payments ecosystem, has introduced e-RUPI, a voucher-based payment system.
It was created in association with the National Health Authority, Ministry of Health & Family Welfare, and Department of Financial Services.
Which Banks issue e-RUPI?
11 banks have joined with NPCI to conduct e-RUPI transactions. They are Punjab National Bank, State Bank of India, Union Bank of India, Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Kotak Mahindra Bank, and Union Bank of India.
Bharat Pe, BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay, and YoNo SBI Merchant Pay are the acquiring apps.
Soon, it’s anticipated that more banks and acquiring Apps would join the e-RUPI project.
Where can e-RUPI be used now?
The first 1,600 hospitals where e-RUPI may be redeemed are partners with NPCI.
According to experts, e-user RUPI’s base will likely expand in the coming years as MSME use it for Business To Business (B2B) transactions and even the private sector uses it to provide employee perks.