Facts for Prelims (FFP)
Source: ET
Context: The RBI has permitted non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers and enable the issuance of e-RUPI vouchers on behalf of individuals.
What is e-RUPI?
- 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.
- S/he can go and redeem it at any centre that accepts it.
- The cap on the amount for e-RUPI 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 e-RUPI voucher multiple times (until the amount of the voucher is completely redeemed).
How will it work?
- For instance, if the central government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank.
- The employee will receive an SMS or a QR Code on his/her feature phone/smartphone.
- S/he can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone.
How will e-RUPI benefit?
- It ensures an easy, contactless process that is operable on basic phones also.
- It will deepen the penetration of digital payments in the country and a major stride towards promoting financial inclusivity.
