Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. e-RUPI (Digital Rupee) could spur e-payments in India to take a leap towards better systemic stability and play a pivotal role in extending financial services to unbanked and under-banked populations. Discuss. (250 words)
Difficulty level: Moderate
Reference: Live Mint
Why the question:
The article discusses the potential of a e-RUPI in India and how it could become the next Unified Payments Interface (UPI) revolution.
Key Demand of the question:
To write about potential of e-RUPI and suggest measures to improve it.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Start by explaining the concept of e-RUPI.
Body:
In the first part, write about the benefits of e-RUPI – financial inclusion, the cashless society, decrease the cost of printing, expanding the digital economy and empowering citizens etc. Cite examples/statistics to substantiate.
Next, write about challenges with regards to e-RUPI – User adoption, security, complexity, domination by Chinese and Opportunity cost due to RBI’s reluctance etc.
Conclusion:
Conclude with a way forward.
