What is e-rupee and how does it work?

What is e-rupee and how does it work?

What is e-rupee and how does it work?

eRUPI Digital Payment System has been launched by Prime Minister Narendra Modi in August 2021. It is a QR Code or SMS based system. This new method of Cashless and Contactless Digital Payment has been started for the purpose to enable citizens to transfer without any interruption.

It will be used only for the work in which the beneficiary would like to get its benefit. This e-RUPI Voucher will play an important role in the digital payment system. Then let’s get to know more about e-RUPI through this article.

Meaning of eRUPI

E-rupee is a kind of digital voucher. The person receiving this benefit will get it in the form of SMS’S or QR code on the phone. Through this the amount will be directly transferred to their bank account.

eRUPI is designed keeping in mind the safety of the beneficiary. It keeps the details of the beneficiaries secretly. Apart from the sender and receiver of the money, no third person can even know about it.

This e-RUPI Digital Payment facility has been developed with the support of both DFS (Department of Financial Services) and NHA (National Health Authority) and is operated by National Payments Corporation of India (NPCI).

How does eRUPI work?

It is a kind of cashless and contactless digital payment system, which will be received on the beneficiary’s phone in the form of SMS S or QR code. It is similar to Prepaid Voucher.

It can be redeemed at any specific center where it is accepted without any internet banking, debit-credit card and mobile app.

You just need to have a simple phone then you can get the benefit of it.

Transaction through e-rupee is very fast and reliable. Amount is already stored in it. It connects the sponsor of services (an individual or institution) with beneficiaries and service providers in a digital form without a physical interface.

Advantages of e-rupee

Next you have been told about the benefits of e-RUPI, let’s know about these benefits.

e-RUPI has the capability to support small businesses to take advantage of government schemes.

Under this, whether the voucher has been used or not, it can also be tracked.

E-Rupee will keep the information of the beneficiaries completely confidential.

To get its service, the beneficiary does not need any mobile app, card, internet banking or any bank account.

Being a prepaid voucher, e-RUPI will assure the service provider of real time payments.

It can also be used on ordinary phones. Therefore, those who do not have a Smartphone or where the Internet connection is weak, it can also be used by them.

How to get e-rupee facility?

The e-RUPI system has been built on the UPI platform by NPCI. NPCI has also added many banks in the country. These banks will be able to issue their own E-Voucher. Banks will issue their E-Voucher on their own UPI platform. In a way, this bank will be the issuing institution itself.

The government agency, corporation or corporate has to approach its partner bank and give full details of the person and the purpose for which the payment is being made.

Beneficiaries will be identified by their mobile number only then SMS and QR code will be received. The voucher is allotted to the service provider by the bank in the name of the beneficiary.

Banks that issue eRUPI

NPCI has partnered with 11 banks for e-RUPI transactions. this is the bank

Where will e-rupee be used?

NPCI has currently tied up with more than 1600 hospitals for e-RUPI. Where e-RUPI can be paid. E-rupee can be used for Pradhan Mantri Jan Arogya Yojana, Ayushman Bharat as well as welfare schemes.

According to the news, it will be used extensively in the coming time. Along with this, private sector employees will also be able to get its benefits.

How is eRUPI different from Digital Currencies?

The purpose of starting e-RUPI is to bring digital currency in India, but e-RUPI is not a digital currency, it is a kind of Social Service Voucher System (Social Service Voucher System).

E-rupee is different from Cryptocurrencies. Let us tell you that this prepaid voucher will be used to provide Welfare Subsidies, which gives an opportunity to do business to buy services and goods to get benefits.

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Future of e-rupee website

yes guys… you read it right

NPCI may soon launch e-RUPI website. e-RUPI can be used to provide services under Matru and Child Benefit Scheme, Ayushman Bharat Scheme, Tuberculosis Elimination Scheme and other welfare schemes.

If the name of Indian digital currency is taken, then only e-RUPI will be the first Indian digital currency. NPCI will be authorized to frame and control and disseminate e-RUPI.

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