"Could e-RUPI revolutionize digital currency adoption in India"

By Sangeetha P, Online Content Writer, siliconindia  |  Monday, 16 August 2021, 06:33:03 PM IST

Although digital payments have been in use for a long time now, demonetization gave it much-needed recognition. Resultant, the young lots chose this hassle-free payment over the traditional cash transaction. Over time the actual shift happened after the ongoing pandemic has struck and left us with no option other than opting for digital transaction. Thus, digital payment evolved to be the new normal, and we realize the benefits are incomparable. Consequently, the digital market gained traction. The 2021 financial year has witnessed more than 40 billion digital transactions that is worth more than a quadrillion Indian rupees. This number hints that payments also adds to the most crucial segment within the country's vivid Fintech environment. 

With this, the Indian government has stepped in to launch e-RUPI, a digital voucher program. It is announced that this program can revolutionize the payment method and pay for a wide range of government services, and this is likely to boost the burgeon fintech sector further. The private sector could also use this to complete the payment for their employees. 

During eRUPI Launch, PM Modi says, "e-RUPI voucher will play a role in boosting digital transactions and Direct Benefit Transfer (DBT) in the country. This will help everyone in targetted, transparent and leakage-free delivery.

He further adds, "e-RUPI is an example of how India is moving forward & connecting people in the 21st century with the help of advanced technology. I'm glad that it has started in the year when India is celebrating its 75th year of Independence."

As eRUPI forays into the country's economic path, the first question that arise …Is this India's first step in adopting digital currency?

What eRUPI Brings!

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With eRuPI, India is all set to kick start its adoption of a stronger digital money transaction setup. eRUPI enables the organizations to aid anybody by giving health treatment, education, or other endeavours via eRUPI vouchers. These vouchers provided are both personal and purpose-specific; that is, the government issues them with a certain goal. For instance, if a ransom has been pledged for healthcare, then the person could redeem it only for that purpose. The advancing technology assists the government as a medium to serve the needy for their development.

eRUPI aid in connecting with the sponsor of services and beneficiaries, thus eliminates physical interference. Its prepaid vouchers enable the users to complete the transaction with just a tap and pay. The most crucial of all is only post the successful payment completion the service provider would get the money. Lastly, it would also benefit the organizations to used vouchers under employee welfare programs. 

eRUPI online uses

NPCI Provided other services :

  • Rupee and Payment (RuPay)
  • BHIM Aadhar
  • Aadhar Enabled Payment System (AePS)
  • Cheque Truncation System (CTS)
  • National Financial Switch (NFS)
  • Unified Payment Interface (UPI)
  • National Automated Clearing House (NACH)
  • Bharat Interface For Money (BHIM)
  • National Electronic Toll Collection (NETC)
  • Immediate Payment Service

eRUPI Role in Digital Payments

With the entry of eRUPI, India could efficiently spot the flaws in the digital payments infrastructure. eRUPI would certainly aid in the further development of future digital currencies. At present, the government is working on the establishment of a Central Bank Digital Currency. Although the Indian rupee supports e-RUPI, its aim differentiates it from a virtual digital currency and places it closer to a payment service system based on vouchers than a virtual digital currency. eRUPI is not a cryptocurrency, but it's a more digitized form of payment. That would enable the user to complete the entire transaction through their mobile without the use of cash. 

The way towards DIgital Currency?

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Well, the launch of eRUPI might trigger the question of this is an initiative towards digital currency adoption? But, this move is not steeping towards cryptocurrency; indeed, it's heading towards digitalization. And hints that the government is open to embracing digital payments in vouchers showing a positive sign to the crypto enthusiasts. 

Witnessing high cash to GDP ratio of 14.7 percent in the past two decades. Thus, the new framework is likely to further give a push to technology-based payment adoption. This move would further cut down the cash dependency of India. The most distinctive characteristics of e-RUPI are it is a QR code or SMS string-based e-voucher, which is given to the mobile phone of the beneficiaries, along with a one-time, cashless, contactless, digital payments system that connects and enables service sponsors and benefactors digitally and guarantees delivery and availability of various welfare services.

The launch of eRUPI would give a new level to the governance of information technology. Cryptocurrency enthusiasts have expressed it with enthusiasm, who believe that crypto assets and measures to promote the digital ecosystem can coexist. Cryptocurrency giants such as CoinSwitch Kuber believe that this could embrace digital currencies in the future. Specialists also think that the voucher would benefit India sustain its position as the world's leader in digital payments. Furthermore, it ensures data security and privacy similar to that of cryptocurrencies, as no personal information is necessary to redeem vouchers. Overall, this is heartening news for the digitization of India's financial infrastructure. The chief aim and long-term ambition of e-RUPI are to reach and unite 190 million unbanked people and bring them into the official financial system, consequently closing a portion of the digital gap in India. Our country's digital payment system has the strength to provide equitable access to healthcare, economic, and social services to every individual in the country.

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