India’s first step towards having its own digital currency is set to launch today. E-RUPI is a person and purpose-specific digital payment system. It will be launched by Prime Minister Narendra Modi in a virtual event on Monday, 2nd of August at 4:30 pm. The Prime Minister’s office said that the electronic voucher launch will be another step in ensuring that the benefits are reaching the beneficiaries and taking forward the government’s aim of good governance.
e-RUPI is a QR code or SMS-string-based e-voucher. It allows digital payment in a cashless and contactless manner. The voucher can be redeemed without using the conventional methods of cash transactions. The sponsor of the services will be in direct touch with the beneficiaries. Developed by the National Payments Corporation of India (NPCI) on its UPI platform, the service is supported by the Department of Financial Services, Ministry of Health and Family Welfare, and National Health Authority.
The government hopes that it will ensure the safe delivery of welfare services. Services sponsored by the government can also be received through this like Mother and Child welfare schemes and fertilizer subsidies. The PM’s office also clarified that the private sector can use this to provide their employee welfare and CSR initiatives.
e-RUPI will be a safe and secure service as verified by the National Health Authority. The details of the beneficiaries will be kept confidential and the transaction process will be much faster.
RBI has listed out certain reasons as to why digital currencies fail to do well in India. These include the popularity of cryptocurrencies, increasing digital payments, and a high currency to GDP ratio. However, we cannot expect in what ways will e-RUPI make its way to become popular.
