Prime Minister Narendra Modi will launch digital payments solution e-RUPI via video conferencing today. e-RUPI is a person and purpose-specific digital payments solution, according to an official statement.
Modi tweeted, "Digital technology is transforming lives in a major way and is furthering ‘Ease of Living.’ At 4:30 PM tomorrow, 2nd August, will launch e-RUPI, a futuristic digital payment solution which offers several benefits for its users."
The platform has been developed by the National Payments Corporation of India in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and the National Health Authority (NHA).
What is e-RUPI and how does it work?
It is a QR code or SMS string-based e-voucher, which is delivered on the mobile phones of the beneficiaries. As it is prepaid, e-RUPI assures timely payment to the service provider without the involvement of any intermediary, says the PMO.
The digital platform will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
According to the NHA, the users of e-RUPI will be able to redeem the voucher without a card, digital payments app, or internet banking access, at the service provider.
According to the PMO, e-RUPI can be used for “delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes and TB eradication programmes".
Elaborating on the benefits of e-RUPI, PM Modi tweeted, "Some of the benefits of e-RUPI are: Cashless and contactless digital payment. Connects service sponsors and beneficiaries digitally. Ensures leak-proof delivery of various welfare services."
The PMO added that even the private sector can “leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes".
With the government developing a central bank digital currency, the launch of e-RUPI could potentially provide the necessary digital payments infrastructure. More banks may provide the facility soon.