e-RUPI: Voucher Based Digital Payment System:
The Indian government is going to launch an electronic voucher based digital payment system e-RUPI.
- There are already many countries using the voucher system for example the US, Colombia, Chile, Sweden, Hong Kong, etc.
- It is a cashless and contactless method for digital payment.
- It is a Quick Response (QR) code or SMS string-based e-voucher, which is delivered to the mobile of the users.
- The users will be able to redeem the voucher without needing a card, digital payments app, or internet banking access, at the service provider.
- It connects the sponsors of the services with the beneficiaries and service providers in a digital mode without any physical interface.
- The mechanism also ensures that the payment to the service provider is made only after the transaction is completed.
- The system is pre-paid in nature and hence, assures timely payment to the service provider without the involvement of any intermediary.
- In effect, e-RUPI is still backed by the existing Indian rupee as the underlying asset and specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system.