The Covid-19 pandemic has arisen the need for remodelling the healthcare sector in India. The vulnerabilities prevailing in the health systems demanded a repair, or better still, a paradigm shift. This is when the government of India came up with a seamless one-stop solution to automate the healthcare facilities and engineer smooth functioning in the subsidy systems. With myths around e-RUPI, where it is confused as digital currency and cryptocurrency, it is something entirely different. Read along to learn the ropes of the newest innovation by the Government.
What is e-RUPI
Launched on August 21, 2021, e-Rupi is a person and purpose & service-specific payment system. It is cashless and contactless and connects sponsors, beneficiaries, and the service provider in a trackable manner with zero chances of fraud or financial loopholes. The e-RUPI payment solution does not require a debit/credit card or a third-party application.
The purpose of launching e-RUPI was to issue welfare subsidies in a transparent and leakproof manner. This voucher solution for cashless payments aims to expand by providing food stamps, school fee stamps, medicine, etc. However, the Government’s main motive is to spend on healthcare facilities. With 21 banks as live partners and 1900+ hospitals as service-provider partners, e-Rupi digital payment has gained good traction since its inception. In fact, Paytm Payments Bank also signed up as an e-RUPI acquiring partner with the Paytm Business App as its acquiring entity. Initially, the e-RUPI issued by the government had a redemption limit of Rs 10,000. However, RBI recently increased the cap to 1 lakh wherein the voucher can be used multiple times by the beneficiary until fully redeemed.
How will e-RUPI benefit its users
The technological interface for e-RUPI is seamlessly integrated in a way that benefits everyone. The easy and contactless 2-step verification process does not require the beneficiary to have a bank account and enables the merchant with paperless redemption of money. Here’s how e-RUPI is a win-win for all:
Benefit to sponsors:
- Prepaid virtual vouchers help in cost reduction
- One-time use and non-transferable
- Trackable and transparent system
- A direct-benefit transfer without misuse of grants
Benefit to service providers:
- Quick redemption
- Hassle-free payment collection
- Secure and Real-time payments
Benefit to consumers
- Contactless and non-printable vouchers
- Transaction only requires a verification code
- Since it is prepaid, it does not require a consumer to disclose bank details
e-RUPI is a futuristic innovation that can aid in the transparent functioning of the economy. While it ensures that the dedicated services are provided to the entitled beneficiaries, it also provides an edge to the Government for easy tracking of the issuing and redeeming of vouchers. The initiative was launched by NPCI (National Payments Corporation of India) along with DFS(Department of Financial Services), NHA(National Health Authority), MoHFW(Ministry of Health and Family Welfare), and live partner banks on August 2, 2021. The voucher system that is way ahead of digital currency is bound to revolutionise the Indian economy in the coming years.