Prime Minister Narendra Modi has launched a new digital payment mode in India called e-RUPI and is powered by Unified Payments Interface (UPI). The new e-RUPI service is essentially a prepaid e-voucher service and can be considered somewhat like a ‘Sodexo coupon’. While the government intends to help the unbanked section of the society to get services like healthcare, child welfare, subsidies with e-RUPI, even corporates can use it to deliver employee benefits and for CSR activities. Here’s everything you need to know about it.
What is e-RUPI
The new e-RUPI service is basically a prepaid voucher that can be issued from banks directly to citizens after verifying mobile number and identity. Instead of putting cash in someone’s bank account, a prepaid e-RUPI voucher will be delivered in the form of a QR code or SMS string-based e-voucher to the beneficiary’s mobile number.
What is the need for e-RUPI
The purpose of this new payment mechanism is to ensure that the government can extend monetary support directly to citizens in a “leak-proof manner” in the form of prepaid e-voucher. Transparency is the key objective of this payment mode. Also, the payment can only be processed after the service has been provided to the beneficiary.