On Monday (August 2), Prime Minister Narendra Modi launched the much anticipated digital payment system called e-RUPI. It is one of the several programmes that have been launched by the Modi government as part of the Digital India initiative.
During his address on the momentous occasion, PM Modi emphasised that e-RUPI will ensure targeted, transparent and leakage-free delivery to the beneficiaries. He added that unlike other modes of digital payment solutions, it is purpose and person-specific. Contrary to the popular perception that ‘technology’ is only limited to the rich, Prime Minister Narendra Modi said, “Today we are looking at technology as a tool to help the poor, a tool for their progress.” He added how India is showcasing to the world its capabilities in innovation, technology usage and service delivery.
While highlighting the efforts made by the government amidst the Coronavirus pandemic, he said that about ₹2300 crore was disbursed to the poor people. PM Modi said that e-RUPI will boost digital transactions and Direct Benefit Transfer (DBT). He said that the world is impressed by India’s rise in the fintech sector due to the foundation work done to improve digital infrastructure in the past 6-7 years. “Today, there are 66 crore RuPay cardholders in India and transactions worth thousands of crores is being done,” he added.
PM Modi also pointed that RUPAY cards are now accepted in Bhutan and Singapore. He stated that the launch of the futuristic digital payment instrument aka e-RUPI comes ahead of the August occasion of Independence Day. The Indian Prime Minister concluded that e-RUPI can be used for medical purposes, education and as alternative for cash transactions. He also added that the e-vouchers can be redeemed for Covid-19 treatment and vaccination at approved centres.
Benefits of e-RUPI system
A cashless and contactless digital payment instrument, e-RUPI is a QR code/e-Voucher that is delivered to the cell phones of beneficiaries. The voucher can then be redeemed without a card or internet banking access at the service provider. Without the need for a physical interface, e-RUPI will connect the sponsors with the beneficiaries and service providers in a digital manner. As such, payment to the service provider will only be made after a transaction is completed.
Given that it is a pre-paid payment instrument, e-RUPI will ensure timely payment without the requirement for intermediaries. e-RUPI is expected to revolutionise the delivery of welfare services such as nutritional support (Mother and Child welfare schemes), TB eradication schemes, drugs and diagnostics (Ayushman Bharat), fertiliser subsidies, employee welfare in the private sector and Corporate Social Responsibility (CSR) programmes.