The Reserve Bank of India (RBI) on June 8 said it will allow non-banking prepaid payment instruments issuers to issue e-RUPI vouchers.
- The central bank also proposed to enabling issuance of e-RUPI vouchers on behalf of individuals to simplify the process of issuance and redemption.
- These steps will make the benefits of e-RUPI digital voucher accessible to a wider set of users and further deepen the penetration of digital payments in the country.
About e-RUPI vouchers
- The e-RUPI vouchers are pre-paid digital instruments that a beneficiary gets on his phone in the form of an SMS or QR code.
- Prime Minister Narendra Modi on August 2, 2021 launched e-RUPI, a cashless and contactless instrument for digital payment.
- e-RUPI is a one-time contactless, cashless voucher-based mode of payment that helps users redeem the voucher without a card, digital payments app, or internet banking access.
- Purpose-specific e-RUPI vouchers are now issued by 21 banks in partnership with the National Payments Corporation of India (NPCI) for specific reasons such as payment of hospital bills, etc.
- e-RUPI is different from Central Bank Digital Currency (CBDC).
- e-RUPI is a person and purpose specific digital voucher. The e-RUPI rides on the Unified Payments Interface (UPI) system of National Payments Corporation of India (NPCI).
- The beneficiary need not be required to have a bank account. As it ensures an easy, contactless two-step redemption process that doesn’t need sharing of personal details.
- The best part of e-RUPI is it operates on a basic phone without an internet connection, therefore, has a wider reach.
