Hello Guys, Recently, our prime minister has launched a new and secured payment method that is e-RUPI, so, in this post, we will discuss this in detail and tell the difference between UPI and e-RUPI.
In today’s time, everything is going on digitally, be it the classes of students or the shopping. The transaction of money was digitalized a few years ago by the introduction of UPI.
But it has its own issues that we have discussed later in this article. To remove these problems to an extent and ensure user’s privacy and security, e-RUPI e- voucher based payment has been launched.
So, let us begin the article and discuss what is e-RUPI.
What is E-RUPI?
e-RUPI is a cashless and contactless medium to transfer money to the beneficiary through an e-voucher in the form of a QR code. e-RUPI is personal and purpose-specific, which means that it will be used only for the purpose for which it is created. Like if you want to take any medicine then bank will generate e-voucher for you and you can redeem that voucher only for taking medicine.
This contactless e-voucher digital payment method was launched by Hon’ble Prime Minister, Shri Narendra Modiji on 3 August 2021. It is a massive step in digitalizing the payment system in India with maximum privacy.
Today we will know more about how does this system works, what are its benefits and how it is different from UPI.
How does e-RUPI works?
With e-RUPI, there’s no need of any credit card or debit card or payment application to be present in the phone. It will be a person-specific and payment-specific method. There are many banks that will be incorporated with this system.
The service provider will have to reach the specific bank with the details of the beneficiary and the purpose for which the payment has to be done.
The banks will issue an e-voucher in the name of beneficiary to the service provider. This e-voucher can be delivered to the beneficiary in the form of SMS string or QR code. This is just like the prepaid gift voucher.
After clicking on the SMS or scanning the QR code, the payment directly goes to the service provider. All the details of the voucher i.e., it’s status can be checked by the service provider or the one who has issued it.
The transactions are fully safe with faster services. This way, there is no need of any credit card or debit card or any other payment applications. You just need to have a mobile and that’s it.
Benefits of e-RUPI Digital Payment Method
- No physical issuance: Due to end-to-end digital transaction of the payment and zero physical issuance, the cost of money transaction is highly reduced.
- Cashless and contactless service: Through e-Rupi, the government has made a large attempt to make the payments contactless and cashless.
- Private and secured payments: Once the transaction is complete, it ensures the payment to service provider without any glitch. So, protects from fraudulent services.
- For anyone with a mobile: Anyone who does not have a credit card or debit card, or doesn’t know how to use the other payment methods, will be benefitted by this system. Since the payment is with the help of SMS or QR codes, it does not need any internet connection. Hence this system will be beneficial for the rural areas.
- Drugs and Nutritional Support: Through E-rupi, mother and child welfare schemes, TB eradication program, Ayushman Bharat and many other national services can be delivered successfully to the needful.
- Employee welfare programs: The private sector can use this e-voucher system to help their employees by delivering services properly.
- Prepaid vouchers: The vouchers generated by the banks are only under the name of beneficiary, with all the details kept private. The vouchers generated are for one time use only.
- Connects: the service providers and the beneficiary in a digital manner.
Difference Between UPI AND E-RUPI
UPI (Unified Payments Interface)
e-RUPI ( Digital Voucher Based Payment)
Also Read: Best UPI Payment Apps in India
Final Words
this system is developed as a prepaid e-voucher system, the e-RUPI system is considered very effective for the digitalization of transactions. It is the secure, faster, and errorless system that will also help those who don’t have any cards or internet connection.
It’s not a virtual currency. It is just another way for transferring money from one bank account to another. It might take some time to establish, but it will be very helpful in the development of the country.
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