What is the Indian Government's e-RUPI payment platform?

India Oct 04, 2021

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A digital payment platform named ‘e-RUPI’ was launched in India by Prime Minister Narendra Modi on 2 August 2021 via video conferencing. e-RUPI is a cashless and contactless platform that will be used for making digital payments. The National Health Authority chairman also presented the highlights of this platform, along with the Prime Minister. During the launch of e-RUPI, the first use of the digital payment platform was demonstrated in a private vaccination center in Mumbai.The National Payments Corporation of India developed e-RUPI on its UPI platform in collaboration with the Department of Financial Services, the Ministry of Health & Family Welfare, and the National Health Authority.

e-RUPI is an e-voucher which is delivered to the mobile of the users via QR code or SMS text. The voucher can be redeemed by the users at the service provider without requiring a credit card, digital payments app or internet banking . e-RUPI allows sponsors of the services to connect with beneficiaries and service providers digitally without requiring any physical interface. Additionally, it ensures that payment to the service provider is only made after the transaction has been completed. The prepaid nature of this method of payment guarantees timely payment to the provider without involvement of any intermediary. This service can be used to deliver drugs and nutritional assistance under schemes for Mother and Child Welfare, TB eradication programmes, drugs and diagnostics under policies such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies and other schemes which fall under these categories. These vouchers can also be used by the private sector as part of employee welfare and corporate social responsibility programs.

The National Payments Corporation of India was created by the Reserve Bank of India and the Indian bankers' association to protect retail payments and settlements in India. Through the use of technology, it manages and maintains the infrastructure for the banking system in India for physical and electronic payments and settlements under the provisions of Section 8 of the Companies Act 2013. This corporation has partnered with banks that will be issuing the vouchers. For the payment to be processed, the corporate or government agency must notify the partner bank with the details of the specific person and purpose for which the payment is being made. The bank will use the beneficiary's mobile number voucher to identify them.

e-RUPI offers numerous benefits for consumers, hospitals and corporations. For customers, the payment process is contactless. The consumer does not have to share his or her personal details as the two-step redemption process does not require any app or bank account. The payment process for hospitals is secured since the voucher can be redeemed in a few steps. Hospitals do not have to handle cash, ensuring hassle-free and convenient payments. The corporate voucher distribution is quick, safe, and contactless, making redemption easy and cost-saving as the transactions are digital rather than paper-based.

The e-RUPI digital platform is a revolutionary step in ensuring leak-free welfare services, making payments simple and improving the overall standard of living.

This article has been written by Sharon John for The Paradigm

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