News: PM Narendra Modi launched the e-RUPI, a person and purpose-specific digital payment solution aimed to improve transparency and targeted delivery of benefits. Read News here.
About e-RUPI from UPSC Perspective:
What is e-RUPI?
e-RUPI is a payments platform developed by the National Payments Corporation of India (NPCI), along with the Department of Financial Services, Ministry of Health & Family Welfare (MohFW), and the National Health Authority. It is a QR-Code and/or SMS-based payment mechanism targeted for timely and efficient delivery of benefits to the concerned person. This mechanism is said to help reduce leakages and will help improve the Direct Benefit Transfer (DBT) mechanism.
Lets understand e-RUPI through an example:
In simple terms, e-RUPI is a voucher created for a dedicated objective. For example, If the government decides on giving a scholarship of 10,000 rupees to a girl child after her higher secondary education, then through e-RUPI, the government would send a QR code or an SMS on the girl’s mobile phone which can be redeemed to get the scholarship in the concerned university. This is important because earlier when the government used to transfer the amount in the bank accounts, the money thus transferred was not always utilized for the targeted purpose. It was observed that the money in bank accounts transferred for educational purposes was sometimes diverted for buying things other than spending on education. Thus e-RUPI will help in assuring targeted, transparent, and leakage-free delivery for all.
Initially, this-e-RUPI will be used for medicinal and educational purposes. The entry of such a mechanism amidst the global pandemic will prove to be beneficial for the poor people of the country. Moreover, this futuristic reform will make its national entry when India will be celebrating its 75th Independence Day on the 15th of August 2021.
Watch the Video on e-RUPI to learn more:
More about e-RUPI:
- e-RUPI is a cashless e-voucher, which can be used for medical and educational purposes initially.
- The future prospects of this reform are endless and unfathomable.
- This will work in the form of a service provider to users without any interference of Government or Middle man.
- The vouchers received are non transferable and non shareable.
- There will be no need for internet banking or any payment interface to be used.
- Government Schemes like the Ayushmaan Bharat Yojana (ABY) will be available on the beneficiaries mobile phone through QR Code and/ or SMS.
- The receiver need not have a smartphone. A basic feature phone can also work. By this, a lot of poor people can be covered under this e-RUPI reform as the majority of Indian population have at least a feature phone.
- This e-RUPI can also pacify the debate of whether the government should give Universal Basic Income (UBI) to the poor section.
For UPSC:
- Study what e-RUPI is, how it will function and how it can be used for the benefit of the masses.
- Learn about its possible applications. Like in Education, Medical, can further be used in giving subsidies to the farmers, transport etc.
- Remember the idea of e-RUPI was of the Reserve Bank Of India (RBI), and the platform was developed by NPCI the same institution which developed UPI payment interface.
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