Page 46 - Banking Finance July 2022

ARTICLE

mechanism which allows users to redeem the voucher without e-RUPI Assurance :
a card or any digital payment app or internet banking. Based
Being pre-paid in nature, it assures timely payment to the
on the Unified Payment System, the Reserve Bank of India-
service provider without involvement of any intermediary.
approved e-RUPI is an e-voucher issued to the beneficiary
It is expected to be a revolutionary initiative in the direction
through SMS or QR code on his or her mobile number. With
of ensuring a leak-proof delivery of welfare services.
the help of this, the service provider gets the payment directly
into his account. Any government agency or corporate can
Benefits :
generate e-RUPI through their partner banks.
It can also be used for delivering services under schemes
Instead of crediting the DBT amount directly to the beneficiary meant for providing drugs and nutritional support under
bank account, through the e-RUPI, an equivalent amount Mother and Child welfare schemes, TB eradication
voucher will be sent directly to the beneficiary's mobile phone programmes, drugs & diagnostics under schemes like
in the form of an SMS string, or a QR code and can see for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana,
utilisation for the same purpose it is intended. fertiliser subsidies, etc. Even the private sector can leverage
these digital vouchers as part of their employee welfare and
The beneficiary will have to show the SMS or QR code to corporate social responsibility programmes.
specific centres where it can be redeemed with a code
delivered to the mobile number and towards safeguard the The voucher system will enable all beneficiaries, including
interest of beneficiary from misutilisation of this SMS/QR feature phone-users, to benefit through this mechanism.
code, while making payment to service provider OTP will be
sent to registered mobile of beneficiary where the SMS or The e-RUPI system will not only ensure that there are no
QR code had come. It also ensures that the payment to the leakages in the delivery of government services but also offer
service provider is made only after the transaction is a much-needed ease and convenience to the people who
completed. are the recipient of such services. This can be a revolutionary
concept and alter the paradigm of governance.
Target of e-RUPI :
e-RUPI, is slated to make welfare payments easier and more
It will be targeted for a specific purpose and cannot be used
efficient, and to an extent looks like the precursor of a Central
for any other thing. For example, if the e-RUPI has been sent
Bank Digital Currency (CBDC). e-RUPI is not a cryptocurrency.
to the beneficiary to avail vaccination, it can be used at the
However, e-RUPI can be a step towards a CBDC.
vaccination centre only to get the vaccine. This would
ensure that the 'money is utilised for the same purpose it is
Users of e-RUPI :
given for'. Earlier, as the benefit amount used to get directly
credited to the account of the beneficiary, it was possible e-RUPI not only useful for implementing the Government
to withdraw and use it for, say, consumption purposes. With Social Welfare schemes in transparent manner but also used
the new electronic voucher scheme, that can be plugged. by Corporates for Corporate Social Responsibility(CSR)
activities, any individuals for donation or helping others. An
example of a corporate sponsoring vaccination of 100 people
in a private hospital. In that case, the beneficiary will get
the vaccine free from the hospital, but only after showing
the e-RUPI SMS or QR code.

India has shown the world that in adopting technology and
leverage it for connecting lives, the country is not behind
anyone. In digital innovation, service delivery using
technology, India is providing global leadership.

Nevertheless to say e-RUPI voucher is an innovative
instrument to transform the life of the common man.

46 | 2022 | JULY | BANKING FINANCE