Page 31 - Banking Finance December 2022

ARTICLE

programmes. e-RUPI requires no hard copy or copy of
voucher for the redemption .

This platform connects the sponsors of the services with the
beneficiaries and service providers in a digital manner
without any physical interface. It also ensures that payment
is made to the service provider only after the transaction is
completed. It is pre-paid in nature, so it assures timely
payment to the service provider without the involvement
of any intermediary. The greatest advantage of using e-RUPI
being that the voucher redemption can be tracked by the
issuer. It ensures that the money given by any organisation
is used for the same work for which it is given.

or SMS based vouchers on their registered numbers . This is
This e-RUPI voucher is different from other online payment
followed by one time password at the time of redemption
applications in a way that e-RUPI is not a platform. It is a
of the voucher as a second factor for authentication. There
voucher meant for specific services. e-RUPI vouchers are
is no requirement of beneficiary bank account details.
purpose-specific and even if one does not have a bank
account or a digital payment app or a smart phone can
In the last step application at merchant's end will be
benefit from these vouchers. According to National Health
scanned and the e-voucher and the OTP to be accepted.
Authority, eight banks are already live with e-RUPI, including
State Bank of India, HDFC, Axis, Punjab National Bank, Bank
It is well known that the role of middlemen poses a serious
of Baroda, Canara Bank, IndusInd Bank, ICICI Bank. The
threat in the delivery of government aid to people as it
financial technologies that are associated with this project
allows leakage and create a huge block that ends up
includes Pine Labs and Bharat Pe.
depriving the ultimate beneficiaries. A significant step
towards the goal of reducing duplication and fraud in welfare
Working of e-RUPI :
schemes was the launch of the Direct Benefit Transfer (DBT)
As far as working is concerned it is based on the in the year 2013 , which utilises modern technology and IT
following steps enumerated below : tools to achieve faster flow of funds and accurate targeting
In first step three categories of voucher issuing entities have of beneficiaries.
been duly approved by RBI namely Banks, Payment service
e-RUPI is easy, safe and secure as it keeps the details of
Providers which hold licenses for pre-paid instruments . The
the beneficiaries completely confidential. Here the system
voucher has a maximum payment limit of Rs.10,000. It is
is designed in such a way that it enables beneficiaries access
non- transferable and can be used for single transaction only.
government services in a cashless manner thus removing the
In the second step fulfilling these above pre-conditions a
need of intermediaries. e-RUPI voucher will make digital
government agency or corporate can now approach a bank
transactions more prevalent in the country thus playing a
to issue e-RUPI vouchers to the beneficiaries duly identified
vital role in making DBT more effective . e-RUPI will prove
for the same. Initially the identity will be linked to mobile
a major step in the direction of transparent governance as
numbers.
it will ultimately benefit the targeted beneficiary. It will give
Now in the next step the beneficiaries will be sent QR- code a new dimension to the digital governance.

BANKING FINANCE | DECEMBER | 2022 | 31