e-RUPI (Electronic Voucher Based Payment System) is an innovative digital solution where users will be able to redeem the voucher without a card, digital payment app, or internet banking access, so there is nothing to worry about specific to online bank fraud or hacking confidential banking credentials. It's collaborative efforts involved in the development of e-RUPI from the below departments and bodies:
- NPCI - National Payments Corporation Of India
- NHA - National Health Authority
- DFS - Department Of Financial Services
- MoHFW - Ministry Of Health & Family Welfare
- Banks (Partners)
It's an era of crypto currency, where some countries started accepting payments in digital form, and that too from currency that does not physically exist like paper currency.
As the biggest flaw of cryptocurrencies like Bitcoin, Ripple, Dogecoin, etc. is that they are not issued by central authorities, there is always a chance of high volatility and large potential losses. As per 2019 academic study data, 25% of bitcoin users are involved in illegal activity, and 46% of bitcoin transactions are associated with illegal activity. Like the share market and other financial institutions that are regulated by central authorities like the RBI, SEBI, or SEC, cryptocurrencies have less risk compared to cryptocurrencies.
So we can consider the Government of India initiative e-RUPI as a first step towards digital payment mechanisms through messages, SMS, or QR codes. e-RUPI would be issued against the beneficiary or users for a specific purpose or activity by a private organisation or government institution.
While making e-RUPI payments, the amount is already stored in the voucher like prepaid cards, leading to smoother and faster transactions and, at the same time reliable as no personal information is getting stored.
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| Current Issuing Banks |
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| Key Beneficiaries |
- Consumers don't have to carry a physical mode of payment (cash, card, or net banking credentials) as it's a contact-less transaction, and no printout is even required for the voucher as it's in QR Code or SMS mode.
- It's a two-step redemption process where, after receiving the voucher, you just need to scan or input the voucher number on the designated payee's platform directly.
- Privacy and confidentiality are maintained as the payee is not required to share bank-related credentials at the time of redemption.
- No bank app or presence of a bank is required during the redemption process.
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| Benefits to Organizations |
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| Cost Reduction to Employers |
- Government is planning to provide scholarship, subsidies and many more benefits through E-Voucher which will ultimately avoids misuse of same funds on any other things which is not necessary. For an example if the voucher is issued for Gas Subsidy ,the same amount E-voucher can be used for future Gas bill payments directly.
- Contactless payment mechanism and fast processing of the transactions
- Fully confidential without disclosing customer details
- Easy tracking of the Transactions by issuer if required
- Less chance of transactions getting declined as amount is pre-filled
- Government is planning and working on developing Central bank Digital Currency and e-RUPI play a key role in identifying the Gap and come as a best platform for the success of future digital currency
- For issuing e-RUPI Corporates and Government Institution needs to reach out to Designated Banks and share the requirement