As reported recently, the Government of India is introducing a new digital payment mode under UPI, known as e-RUPI. However, it is different from a central bank digital currency (CBDC). It is expected that with the release of the new platform the unbanked section of society will be getting access to financial support for health services, medicines, child welfare, medicines, and many more things.
The major purpose of the introduction of e-RUPI is to make sure that the government can extend monetary support directly to citizens in a leak-proof manner in the form of an e-voucher backed by UPI.
The prepaid e-voucher is 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.
It is basically a prepaid voucher that can be issued to citizens directly after authenticating the mobile number and identity of the citizens.
As revealed, in place of putting cash in someone’s bank account, a prepaid e-RUPI voucher is going to be delivered in the form of a QR code or SMS string-based e-voucher to the mobile number of the beneficiary.
As a part of the employee welfare and corporate social responsibility programmes, the private sector can make use of e-RUPI vouchers.
The government of India has intentions to use e-RUPI as a leak-proof delivery of welfare services.
As of now, there are 11 banks that support e-RUPI and also, it should be noted that some banks can only issue e-RUPI vouchers but won’t accept them.
The banks that fully support the digital payments mode are ICICI Bank, SBI, Punjab National Bank, HDFC Bank, Axis Bank, and Bank of Baroda.
Furthermore, Prime Minister Narendra Modi has recently stated that e-RUPI vouchers can be used for medical purposes, education instead of providing cash to help someone.