Economy

 aking the primary step towards having a digital currency within the country, Prime Minister Narendra Modi can launch associate electronic voucher based mostly digital payment system “e-RUPI” weekday.

·        e-RUPI is an electronic voucher based digital payment system.

·        The platform has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority, will be a person-specific and purpose-specific payments system.

·        e-RUPI could be a cashless and contactless digital payments medium, which can be delivered to mobile phones of beneficiaries in variety of associate degree SMS-string or a QR code.

·        This can primarily be sort of a paid gift-voucher which will be redeemable at specific acceptive centres with none credit or revolving credit, a mobile app or net banking. e-RUPI can connect the sponsors of the services with the beneficiaries and repair suppliers during a digital manner with none physical interface.

·        The system has been built by NPCI on its UPI platform, and has on boarded banks that will be the issuing entities.

·        Any corporate or government agency will have to approach the partner banks, which are both private and public-sector lenders, with the details of specific persons and the purpose for which payments have to be made.

·        The beneficiaries are going to be known exploitation their mobile range and a voucher allotted by a bank to the service supplier within the name of a given person would solely be delivered to it person.

How will these vouchers be issued?

·        The system has been built by NPCI on its UPI platform, and has on boarded banks that will be the issuing entities.

·        Any company or administrative unit can got to approach the partner banks, that square measure each non-public and public-sector lenders, with the small print of specific persons and also the purpose that payments got to be created.

·        The beneficiaries are going to be known victimization their mobile range and a voucher allotted by a bank to the service supplier within the name of a given person would solely be delivered to person.

What are the use cases of e-RUPI?

·        e-RUPI is expected to ensure a leak-proof delivery of welfare services.

·        It also can be used for delivering services beneath schemes meant for providing medicine and organic process support beneath Mother and kid welfare schemes, TB obliteration programmes, medicine & medical specialty beneath schemes like Ayushman Asian nation Pradhan Mantri January Arogya Yojana, fertilizer subsidies etc.

·        The government additionally aforementioned that even the non-public sector will leverage these digital vouchers as a part of their worker welfare and company social responsibility programmes.

How is it different from a digital currency?

·        e-RUPI continues to be backed by the present Indian rupee because the underlying quality and specificity of its purpose makes it completely different to a virtual currency and puts it nearer to a voucher-based payment system.

Are there global examples of a voucher-based welfare system?

·        In the North American country, theres the system of education vouchers or college vouchers, that may be a certificate of presidency funding for college students chosen for state-funded education to form a targeted delivery system.

·         In addition to the North American country, the varsity voucher system has been utilized in many alternative countries like Republic of Colombia, Chile, Sweden, Hong Kong, etc.