e-RUPI, a digital voucher launched in August 2021 for digital dissemination of benefits under government schemes, will now come with a cap of Rs 1 lakh.
As a part of the monetary policy announcements on January 10, Reserve Bank of India (RBI) Governor Shaktikanta Das said that the cap on each voucher will be hiked by 10 times from Rs 10,000 to Rs 1 lakh for both state and central government issuances.
e-RUPI was developed by the National Payments Corporation of India (NPCI) which also handles payments instruments like the Unified Payments Interface (UPI), RuPay and Bharat Bill Payment System (BBPS). Launched by the Prime Minister in August last year, the e-RUPI's first use case was to provide free Covid-19 vaccination to Indians post the second wave in the country.
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Besides the hike in the amount, the Governor said that it has also been proposed that the voucher can now be used multiple times until the entire Rs 1 lakh limit is used. Currently, it can be used only once for the one specific purpose the voucher has been issued for.
This will ensure that governments can now extend multiple benefits of up to Rs 1 lakh on the same voucher.
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The e-RUPI is a person and purpose-specific payment system and functions in the form of an SMS string or QR based code, which is sent straight to the beneficiary’s phone and is redeemable at designated centres without the need for any credit/debit card, mobile banking applications, or more, thus eliminating any physical interface.
Essentially, it works like a pre-loaded, prepaid voucher that can be encashed without the intermediate need for debit cards, internet banking, and more, thereby seamlessly connecting beneficiaries and sponsors. Also, taking payment security a step ahead, the system ensures that the service provider payment is only made after completing the transaction.
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As per data on NPCI's website, 16 banks are live as issuers of e-RUPI and the voucher is accepted at over 1,950 hospitals across the country for the purpose of Covid-19 vaccinations.
The voucher can also be used by private organisations for extending benefits to employees, however the cap for that use case has not been hiked yet. The e-RUPI has not found widespread acceptance from private organisations but has been used largely for extending government benefits.
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