The word “Digital ” is becoming a piece of everything which we use in daily life. This will not only be meant for making our life easy but also be related to becoming more efficient and contactless(as taking this corona situation in mind).
As the whole world is growing with digital money, now India had also joined the same race. India took its first step in it. As PM Modi had launched e-Rupi. Let us talk about it in detail.
What is e-Rupi ?
People are confusing the e-Rupi with digital currency but it’s not completely a digital currency like crypto, but we can say it’s an initial step towards a digital currency. e-Rupi is a kind of electronic voucher-based digital payment system. It’s not the part of the recent statement given by RBI to ban the cryptocurrency in India and launch India’s own digital money, as e-Rupi is just a small step towards it.
Who developed it?
This platform of e-Rupi is developed by the National Payment Corporation of India (NPCI). There is also some contribution by the Ministry of Health and Welfare, Department of Financial Services, and National Health Authority. It will be going to be person-specific and purpose-specific.
How does it work?
e-Rupi is a cashless and contactless digital medium. It will be straight delivered to the mobile phones of the recipients in the form of an SMS string like numeric code or QR code. To make it more clear let it try to understand with the help of an example.
Suppose a company wants to provide a food voucher worth 5000 to its one the employee. Earlier it was given in the form of a card or paper but now with this e-Rupi, it will be in digital form. The employee will be provided with an SMS string or QR code.
This is basically a prepaid gift voucher card that can be redeemable at some centers without any debit or credit card payment, mobile, and internet banking. It will connect the sponsor of the service and the recipients directly without any physical interface and will provide the service.
What is the meaning of person and purpose-specific?
See as I mentioned earlier that it will be given to a person that means it will relate to a specific person which determines that e-Rupi is person-specific. Also in the above, as I mentioned in the example that relates to food vouchers exactly in the same manner every e-Rupi will specify a particular purpose, Which determines that it’s also purpose-specific.
In the above example employee is the person and to redeem that food voucher at a center is purpose.
How will e-Rupi be issued?
The system has been built by NPCI on its platform and has many banks as partners which will issues entities. Any corporate or company and Government agency will have to approach the associate bank, which is both private or public banks, with the information of the specific person and purpose for which the payment has to creat.
The recipient will be identified with the help of a voucher allotted by the bank to the service provider and the service will only give to that person with e-Rupi. Again I am mentioning that it will be in the form of an SMS string or QR code.
Associated Banks for the issue of e-Rupi.
State Bank of India, Axis, Punjab National Bank, HDFC, Bank of Baroda, Canara Bank, IndusInd Bank, ICICI Bank. Many more banks will join in the future.
How is it different from Online Payment?
See e-Rupi is not a platform. As for online payment, we should have a smartphone to use Gpay, Paytm, Phone pay, or any other platform. But in the e-Rupi concept, we don’t even require a bank account. Simply we have to go to the provider and have to redeem it.
The benefit of e-Rupi.
With the help of e-Rupi, there will no leakage of money. For example, suppose a scholarship of 5000 rupees for education is provided to a student, but if the student would provide with money then maybe the money will not use for education and be misuse anywhere else. But if the student is provided with an e-Rupi voucher then it can only use for education purposes. This also reflects that transparency will also increase.
The government will also be able to track the status that the provided vouchers are redeemed or not. And also the privacy will ensure
What is the use of it?
According to the government, e-Rupi will ensure a leakage-proof delivery of welfare services. It is also meant to be used for providing services for providing drugs and nutritional support under mother and child welfare schemes, drugs, and diagnostics under schemes such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojna.
Private companies can also leverage these digital vouchers as a part of their employee welfare and corporate social responsibility programs.