e-RUPI

e-RUPI

• The RBI has permitted non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers and enable the issuance of these vouchers on behalf of individuals.
• e-RUPI is a contactless cashless voucher which a user gets on his or her phone in the form of an SMS or QR code.
• One can go and redeem it at any centre that accepts it.
• The cap on the amount for these vouchers issued by the government has been set at Rs 1,00,000 per voucher.
• The central bank has also allowed the use of the voucher multiple times (until the amount of the voucher is completely redeemed).

Benefits to the consumer

– It is contactless and a printout need not be carried
– The redemption process is very easy
– Personal details need not be shared by the beneficiary.
– There is no need to have a bank account or digital payment app.

Benefits for Merchants

– The voucher is authorized via a verification code.
– Payment collection is contactless.
– The redemption process is quite quick and requires few steps.

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Practice Questions for Prelims

E-Rupi is developed by which of the following organisations?

a) Reserve Bank of India
b) National Payments Corporation of India
c) Council of Scientific and Industrial Research
d) NITI Aayog

Ans. b)

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