e-RUPI voucher, another milestone in digital India

It could turn out to be the fourth pillar, further supporting JAM trinity initiative

Hari Hara Mishra | August 2, 2021


#Narendra Modi   #Digital India   #digital payment   #technology   #e-governance   #finance  


Today (August 2), prime minister Narendra Modi launched the e-RUPI voucher system which is another milestone in Digital India. Simply put, this will be a digital payment which will be delivered to mobile phones of beneficiaries, even with no bank account and this payment is like an e-Voucher in form of a SMS-string or a QR code. To start with, the government is expected to utilise this system for health services like drugs, and diagnostics under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, other programmes like fertiliser subsidy and subsequently the usage will be extended to many direct benefit transfer schemes (currently around 300 DBT schemes are in operations). The first transaction today was made for payment towards the Covid vaccine in a private vaccination centre.

The e-RUPI is both cashless and contact less (meaning, no debit card/ credit card required). What is important is that the transfer is to a mobile number rather than to a bank account. Hence, this can be utilised even for unbanked population. The private sector can also use it for CSR activities. It will be a person-specific and purpose-specific payments system. Purpose specificity is an important tool to ensure the end use of funds transferred. For example, if the payment is released for textbooks, it can only be used for purchase of books and nothing else.

The platform has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority. NPCI has already onboarded leading public sector and private sector banks like SBI, ICICI, HDFC Bank, Axis Bank, PNB, Bank of Baroda who will be the issuing entities. Any corporate or government agency will have to approach the partner banks, with the details of specific persons and the purpose for which payments have to be made. The beneficiaries will be identified using their mobile number and a voucher allocated by a bank to the service provider in the name of a given person would only be delivered to that person for the specified service only.

Because of Covid-19, contactless and digital payments have gained rapid acceptance and with increased smartphone usages, the volumes are likely to accelerate still further. The Reserve Bank of India has recently announced a digital payments index (RBI- DPI). The penetration of digital transactions is evidenced by the index at 270.59 as of March 2021, over a base of 100 as of March 2018. In three years, it has grown almost three times.

Digitalisation and fintech are the buzzwords for future. As indicated by the prime minister today, industry bodies, NGOs etc have displayed lot of enthusiasm for this product. Once this picks up momentum both in the government and private sectors, the velocity of e-RUPI will increase exponentially. This could indeed turn out to be the fourth pillar, further supporting JAM (Jan Dhan, Aadhar and Mobile) trinity initiative.

Mishra is a policy analyst and columnist.

Comments

 

Other News

Coal production rises by 18% to 448 MT

The total coal production in the country stands at 448 million tonnes (MT) for the month of October 2022 which is 18% higher than the production of the corresponding period of last year. The growth of coal production from Coal India Ltd (CIL) is also more than 17%. The ministry of coal said

How to execute large-scale social impact projects

The number of social innovators and entrepreneurs has considerably increased recently in India. The idea of social entrepreneurship, which aspires to provide novel solutions for the world`s most critical social issues, is now receiving more attention. Challenges like overworked healthcare,

Plastic is no longer a waste management issue

Plastic is arguably the most ubiquitous material of our times. In this Age of Plastic, it might seem its use can’t go up any further – and yet it keeps going. Between 2000 and 2015, global production of plastic increased by a whopping 79%. The total mass of plastics on our planet is now twice t

Celebrating the Ganit of Protein!

“Why is the child growing?” is the question that bothers a lot many in the administration. The answer, to be honest, is to be discovered via science, and less via what we call ‘effective administration’. Eventually, it will be the latter that will enforce the former on the field, bu

Trying to achieve work-life balance? Here’s some advice

The untapped potential of every individual is the biggest tragedy of the human race. The primary reason for this is our lack of awareness of the processes, tools and t

Getting to know Indian history’s heroes better

Bravehearts of Bharat: Vignettes from Indian History By Vikram Sampath Penguin, 334 pages, Rs 799 A student has an assignment

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter