E-Rupee Voucher: Reserve Bank of India Governor Shaktikanta Das announced the expansion of India’s first and so far only digital currency, E-Rupee Voucher, to its range. Earlier only certain banks had the right to issue e-rupee vouchers.
Reserve Bank’s big announcement about E-Rupee Voucher
But recently the Reserve Bank has decided that non-banking financial institutions will also be able to issue e-rupee vouchers from now on. Earlier it was mainly issued for various organizations. But for its expansion, banks and non-banking financial institutions can now issue e-rupee vouchers for individuals as well.
What is E-Rupee Voucher?
The name might make some people think it’s some kind of government voucher. But it is not. E-Rupee Voucher is India’s first valid digital currency, currently in the trial period. But according to RBI sources, very soon the e-rupee voucher will be officially launched for everyone from the trial mode.
In 2021, RBI first announced that they will introduce the country’s first digital currency e-rupee voucher as a pilot project. According to that announcement, it was introduced in the first country in November 2022. In the first phase, four banks namely State Bank, ICICI Bank, IDFC First, and Federal Bank were given the right to issue e-Rupee vouchers in the field.
The service is being piloted in select cities like Mumbai, Bengaluru, and Hyderabad. But RBI was increasing its scope step by step as it got enough success in the beginning. However, this time they have decided to increase the range of e-rupee vouchers. Also, Reserve Bank Governor Shaktikanta Das said that they have decided to further simplify the rules for issuing e-rupee vouchers.
What is the need for E-Rupee Voucher?
The UPI system for digital transactions was earlier introduced by the Reserve Bank with the help of the Payments Corporation of India. Naturally, the question arises in the mind of many people, why do you need E-Rupee Voucher to have UPI?
Actually, E-Rupee Voucher is a digital note. You can pay the specified amount to the bank and get an e-Rupee voucher of the same value from there. Then use it as you wish and make digital payments. Much like a cash transaction. Your digital money transactions will no longer be monitored by the bank.
But UPI is a medium of transaction. With this, money will be directly deducted from your bank whenever you make a transaction. In other words, the direct role of the bank in transactions through UPI is always there. If you transact with digital currency or e-rupee vouchers there, the bank will not be able to monitor where you spend the money.
Services That e-RUPI Covers
- Fertilizer Subsidies.
- Nutritional assistance is provided through the Child and Mother Welfare Scheme.
- Programs for TB eradication.
- Ayushman Bharat Pradhan Mantri Jan Arogya Yojana Schemes for Diagnostics and Drugs.
How Does e-RUPI Operate?
- The corporate/Government Department (Sponsor) communicates information (specify fields such as name, cell phone number, amount, the purpose of the voucher, expiry date, and so on) with Issuer Bank to issue e-RUPI.
- The issuer bank/payer PSP submits a request to the NCPI (National Payments Corporation of India) to create an e-RUPI.
- NPCI sends a success confirmation notification to Issuing Bank/Payer PSP. The issuer bank/payer PSP certifies e-RUPI generation back to the corporate/government entity, which will then distribute the QR or SMS string to the recipient.
- Beneficiary contacts merchant thru e-RUPI for redemption. Merchants validate e-RUPI vouchers, assess beneficiaries, and commence redemption requests.
- The merchant gives service to the recipient following successful redemption confirmation.
Benefits Of e-RUPI Digital Payment Solution
- Cash, credit and debit cards, internet banking, or a digital payment app are not required for the e-RUPI transfer.
- Because the transfer is person- and purpose-specific, every e-RUPI transaction is a one-time thing. As a result, the concern of benefits being siphoned off is uncommon. Queues, intermediaries, and touts are avoided as well. An OTP will be needed for advancing with the e-RUPI payment at the time of use, and therefore the intended beneficiary will remain in charge, for the most part.
- Because the beneficiary is not required to provide any personal information, the security encryption is more excellent.
- The e-RUPI payment solution enables the beneficiary to conduct financial transactions even if they do not have an account. Higher take-up in rural regions and among financially disadvantaged persons would be conceivable because of this flexibility in the system.
- There is also a huge opportunity to benefit small businesses through various government programs directly. This would aid the impoverished in reaching long-term economic objectives and livelihoods.
- It will aid in the financial integration of the residents of the country. It will also ensure that public services reach out to lists-mile consumers efficiently and transparently, with no leakage.
- The e-RUPI solution is not only secure but also simple to use. As a result, illiterate people will benefit from this technology.