After the launch of a new government-based payment system a lot of questions like what is e-rupi, how does it work, etc…are popping up in every individual’s brain. Is it the same as other commonly available cashless payment options or this is different in any means? What’s the main purpose and how to use it?
Here is everything about this cashless and contactless system you should know.
What Is E-Rupi?
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National Payment Corporation of India has developed an electronic voucher-based payment system to digitally connect beneficiaries and sponsors of public welfare schemes. National Health Authority and Department of Financial Services along with the Ministry of Health and Family Welfare have co-developed it with NPCI.
Also Read: List Of Bank Holidays In August 2021, Banks To Be Shut For Half Of Month
How Does E-Rupi Works?
Users will get e-vouchers from the banks and institutions associated with E-Rupi. These vouchers are meant specifically for the user registered under the scheme. It works on both QR code and SMS methods to provide the direct benefit of welfare scheme services to the public.
In other words, E-Rupi eliminates the need for any intermediary between the transaction processes. This ensures the transparency of the government assistance programs that aim to reach people at ground level.
No use of digital payment apps or any kind of internet-based banking services will be required to avail benefits of these services.
3 Main Benefits Of E-Rupi
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1. Ensures timely payment as it is a prepaid voucher
2. Offers confidentiality of personal information of the beneficiaries as it connects users directly to the sponsor service providers
3. Allow seamless and faster transaction
Use Of E-Rupi
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The new digital payment system will be used for several Government welfare schemes and services such as:
1. Fertilizer subsidies programmes
2. Pradhan Mantri Jan Arogya Yojana
3. Ayushman Bharat
4. TB eradication programmes
5. Women and child-specific schemes
Apart from government agencies, private entities can also take advantage of this one-time payment mechanism. Besides providing end-to-end benefits to users and agencies, Government aims to highlight any loopholes in the digital system.
It is India’s first step towards adopting virtual currency and it works in association with some major banks of the country like SBI, ICICI, HDFC, Kotak, PNB, and many more.