Right before PM Narendra Modi had launched E-RUPI, there were speculations in the market. Some felt he is going to launch RBI backed digital currency in competition with the existing cryptocurrencies like Bitcoin, Ethereum. Defying all speculations, PM on August 2 at 4:30 pm instead launched a new digital payment mode based on e-vouchers. The E-RUPI is a digital voucher aimed to make payments seamlessly without digital payments apps or internet. If E-RUPI is different from cryptocurrencies, then what is it? Let’s know.
What is E-RUPI?
According to the official website of National Payments Corporation of India (NPCI), E-RUPI created by NPCI in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW) and partner banks.
The payments under this technology done with the help of SMS string and QR Codes. This is unlike the conventional cash transactions. Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank, PNB and SBI have partnered with NPCI to approve transactions. This technology is based on similar to Blockchain, which also aims to make payments reach end-user in a leak-proof method. This method is relatively safe, secure and faster than other digital payment modes. The e-voucher being non-transferable and having monetary value being already in it, make it trustable even for noobs in the fintech world.
The PM’s statement in the e-launch event:
PM said that ”E-RUPI voucher is going to play a huge role in making Direct Bank Transfer (DBT) scheme more effective in digital transactions in the country”. Further, he said that this scheme is being first rolled out in the health care services. This pre- destination of money makes sure that it moves towards correct purposes. Promised pre to the donation. However, if the private sector wants to sponsor/fund welfare schemes in the education and health sector, then they can take benefits of this newly developed e-voucher payment method.
Difference of E-RUPI with Cryptocurrencies:
The E-RUPI-made on the existing UPI platform. It is based on digital infrastructure with no cash transactions makes people speculate that it’s a sort of cryptocurrency. Straight answer is NO. Though these both (E-RUPI and Cryptocurrencies) are contactless, digital payments. Yet the major thing which distinguish them is that E-RUPI is government approved and under their control. Also, unlike cryptos, there is no fluctuations in the price of E-RUPI. Many cryptocurrency investors have welcomed this move of the government stating that it will help in facilitating the acceptance of digital currency in the country.
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