It is a one-time payment mechanism on Unified Payments Interface (UPI) platform which has been developed by National Payments Corporation of India in collaboration with Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority.
Though it is a way to make payment digitally, it is a different from the methods of digital payments already existing because it will be available in the form of voucher. If we say in simple language then we can say that it is a prepaid gift card which the receiver will be able to use according to his convenience. Its special thing is that internet and bank account will not be required to use it. According to NPCI, e-Rupee is a cashless and contactless platform for digital payment.
How does it work?
Let us try to understand how does e-rupee work? Suppose that the government wants to give money to the people to get the food grains. The easiest way for this is to transfer money to everyone's account, but the problem with this is that many people still do not have a bank account. Let, for few moment, we assume that everybody is having a bank account even then it cannot be ascertained that the money sent has been not been used for any other purpose. It is only in this situation that e-RUPI will come in handy.
Modus Operandi
In this, e-RUPI can be sent as an SMS or QR-code to the mobile of designated person in order to ensure that only the person to whom it will be sent will be able to use it. For example, the eRUPI voucher sent by any agency to designated person to get the food grains will be received on his mobile number. He will be able to use the same voucher to get the food grains. After the use of that voucher, the issuing agency will also be notified that this e-voucher has been used. It finds its applications in both the government and private sectors:
This is expected to ensure leak-proof delivery of welfare services and can be used for maternal and child welfare schemes, medicinesand diagnostics under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidy etc.
As a part of its employee welfare and Corporate Social Responsibility (CSR) programs, the private sectors can also avail this facility.
