What’s in the news?
- Prime Minister Narendra Modi has launched the digital payments solution e-RUPI, a person and purpose specific cashless digital payment solution.
- Mr. Modi said the voucher-based system will play a huge role in making DBT (direct benefit transfer) more effective in digital transactions in the country and give a new dimension to digital governance.
- The e-RUPI platform has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare, and the National Health Authority.
- It is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in the form of an SMS-string or a QR code.
- This payments system will essentially function like a prepaid gift-voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking.
- e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
- e-RUPI is built on NPCI’s UPI system which would ensure leak-proof delivery of welfare services.
- Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
- e-RUPI voucher will play a role in boosting digital transactions and Direct Benefit Transfer (DBT) in the country. This will help in targeted, transparent and leakage-free delivery.
- It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies etc.
- The Prime Minister stated that in addition to the government, if any organisation wanted to help someone in their treatment, education or for any other work, then they would be able to give an eRUPI voucher instead of cash. This would ensure that the money given by him was used for the work for which the amount had been given.