To strengthen digital payment in India and take a new step in digital payment, the Prime Minister of India Shri Narendra Modi launched a new payment system on 2nd August 2021, under NPCI. (NATIONAL PAYMENTS CORPORATION OF INDIA) known as e Rupi under this system the digital payment becomes more secure and easy and safe.
What Is e-RUPI?
e-Rupi is such a digital payment system in which we can make our transaction successful through QR code or SMS string. This person can make their transaction successful without using any credit card, debit card, mobile banking. Through e Rupi, people cannot need any debit card/ credit card or net banking to make transactions successful.
This will work like a preloaded, prepaid voucher that can be availed without a debit card. We can also make use of it without internet banking or any other bank-related requirement such as account number, IFSC code. The E-Rupi is based on an electronic voucher. Through this, the Prime Minister of the country, Shri Narendra Modi, trying to pay more and more attention to digital payment, and taking new steps in the digital payment system, through which all the citizens of the country became aware of digital payment.
If you are an Indian Citizen then you have also known about Some Important Cards details and How to Create Online and OFF Line. If You have not these cards then you can apply now Follow these steps.
How Does e-Rupi Work
E-Rupi is a medium within which work is done through QR code or SMS string.
Under this, if a person needs money for any work, then he will request an e-voucher to NPCI and NPCI will create it with the help of a bank. And creates three copies of that voucher. One copy NPCI keeps with them for any emergencies and one copy given to the person who applied for it and the last copy given to the shop or whatever for which the voucher is made to process.
For example, if a person needs money to buy fertilizer, he will go and tell his boss that I need money for fertilizer but his owner will give him a QR code that can be used only for fertilizer. If the QR code given by the owner is used for any purpose other than buying fertilizer, then it will not be valid for another purpose. lets more elaborate it because examples give correct explanation If the owner gives a QR code of ₹ 10000 to the person who asked for buying fertilizer, then that person can buy only fertilizer for ₹ 10000, apart from that he cannot use the QR code of ₹ 10000 for another purpose anywhere.
If a person has applied that he needs a QR code of ₹ 10000 to buy fertilizer, then NCPI will keep three copies of that code, one NCPI will keep one with itself. Another will give it to the person who requested it and apply for it and the last one will reach the shopkeeper from where he wants to buy the particular item.
NCPI generates the QR code by contacting the bank and gives the QR code to the person who requires it or applied it for creation. And all this work is done under NCPI.NCPI creates a QR code with the bank and gives it to the person who has applied. If a person does not have an Android phone, then he can also take advantage of the SMS string. Under which an SMS arrives on your phone. And the QR code that will come on the number of the same person who has applied for it and the person who has applied will be identified only through his mobile number.
Features of E-Rupi
There are some features of e Rupi as we all know it will be a great step in the field of total digital payment method without any scam and the features are given below
- e Rupi is a cashless and contactless feature and any person can take advantage of it by just simple steps.
- For using this payment system. Person can do this e payment through QR code and SMS which are based on the voucher.
- While using e Rupi no debit card/credit card or any bank account details are required.
- The relationship between the consumer and the service provider is completely digital. There is no medium of physical interference between them.
- The voucher will only be valid for specific work for which the voucher is created otherwise for any other work that voucher will be invalid.
Benefits of E-Rupi
There are lots of benefits with e Rupi as we all know it will be a totally digital payment system without any scam and the some of the benefits of e Rupi are given below-
- All welfare schemes can be delivered by UP without any leakage.
- By the government the private sector can also use these digital vouchers for the Apply Welfare Corporate Social Responsibility Program.
- The government has also taken special care of privacy inside e Rupi.Within this, the payment will be successful only through the voucher of QR code or SMS string.
- IFSC code, debit card, credit card or account number or any other account detail will not be required to proceed the process.
- Payment through e Rupi will be done very easily and soon without any leakage between third parties.
- The payment will safely reach to the person for whom the QR is created.
How E-Rupi is Different From Crypto Currencies
e RUPI is the first step in India towards having a digital currency. It is not a digital currency but a social service voucher system. Which ensures access to eligible beneficiaries and special benefits without any discrepancies and delays.
This is completely different from cryptocurrencies which let you buy goods and services or trade them for profit. More importantly, it is regulated by the government. The prepaid vouchers to be paid by the government will be largely used to provide welfare subsidies, at least initially.
However, in connection with the introduction of digital currency in India, the Reserve Bank of India announced this January that it was exploring the need for a central bank digital currency in India as a measure to enhance financial inclusion.
Cryptocurrency is based on a Blockchain rather e RUPI is based on a UPI system.
e-RUPI is somehow the same as the gift vouchers that we get online, but the government is releasing it this time.
Bank Live With E-RUPI
NCPI will take all the charges of e Rupi every process of e Rupi will be done under the NCPI and with the linkage of banks and some banks have already become a part of e Rupi and List of Banks which work with E Rupi are given below:
|Name of the Banks||Acquirer||Issuer||Name of Application acquired|
|State Bank of India||Yes||Yes||YONO SBI Merchant|
|ICICI Bank||Yes||Yes||Bharat Pe and Pine Labs|
|Axis Bank||Yes||Yes||Bharat Pe|
|Union Bank of India||No||Yes||N/A|
|Punjab National Bank||Yes||Yes||PNB Merchant Pay|
|HDFC Bank||Yes||Yes||HDFC Business Application|
|Bank of Baroda||Yes||Yes||BHIM Baroda Merchant Pay|