The Prime Minister recently introduced the e-RUPI, a purposeful, and person-specific digital prepaid payment utility system. The interesting element is that the beneficiaries or those who are entitled to the sums assigned to these prepaid instruments will receive an SMS or QR code on their smartphones, which they can use to redeem the instruments at locations that accept such instruments.
This e-RUPI solution, which is built on the UPI platform, promises to make cashless transactions possible in a variety of industries.
At the point of presence, the verification code must be conveyed to the service provider, who will then validate and authorize the transaction, enabling contactless, real-time payment and completing a funds settlement with the service provider.
The launch is specifically targeted at the healthcare business. Using the e-RUPI at vaccination clinics allows for contactless payment while also providing visibility into the redemption by the end-user who was supposed to be the recipient of such benefits, which is especially important given the Covid-19 limitations.
For example, if an employer wants to have its employees vaccinated, they can distribute prepaid instruments while still keeping track of the redemption point once the service is performed. The technique enables the issuer to track the voucher’s redemption.
e-RUPI can be implemented into several government welfare programs because it is purpose and individual-specific. This will prevent any system leaks and, unlike cash, will ensure that money is sent to and for the intended recipient.
This could aid the welfare plan’s objectives by boosting transparency in the way government allocations/spending are decided, as well as the efficiency with which services are delivered under a certain program.
It’s simple because the redemption method doesn’t require the recipient to be online, present a card, have a pre-installed digital payments app, or have internet banking access. There is no trace of the beneficiary’s data, and the beneficiary’s information is kept completely private. If the technology was used more broadly throughout the organization, data privacy controls would be easy to implement.
This method, similar to how an Aadhaar cardholder’s specific communication information is linked, could also enable targeted distribution of consumer welfare efforts to the final beneficiary.
The e-RUPI system does not require the consumer to have either a digital or a bank presence, and it relieves the consumer of the need to rely on external facilities to access the services that are given to them to broaden the reach of the programs and assist the underserved.
Various sectors, such as education, healthcare, and social welfare, might tremendously benefit from this approach. In a welfare economy like ours, having a payment method that is as good as a bearer cheque would increase entitlement benefits penetration to the last mile, and it may be incorporated into other systems that benefit both the commercial and public sectors.
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