On 2nd August 2021, the Prime Minister of India introduced a unique payment platform to Indian users called eRUPI. If you haven’t completely understood how eRUPI works and its pros and cons, you don’t need to go anywhere. This secure and smart system is going to revolutionize the people transact these days. But there are also some limitations to consider before. The following advantages and disadvantages of eRUPI disclose some facts.
It’s a prepaid e-Voucher user can use for digital transactions. The National Payments Corporation of India develops this payment platform. The concept of e-RUPI is similar to UPI, which lets consumers transact safely on a sender-to-receiver method exclusively.
NPCI has developed this platform in association with the Department of Financial Services (DFS), National Health Authority (NHA), and Ministry of Health and Family Welfare (MoHFW). In addition, you can entertain eRUPI features easily as it has partnered with 11 public and private sector banks.
Not only private organizations but ordinary people can also use the eRUPI platform without necessarily having a smartphone. Users with simple phones can safely get the advantages of eRUPI system for government schemes. Some unique benefits of eRUPI platform are as follows.
The Indian government has launched numerous benefits schemes for citizens, namely, Ayushman Bharat, Sumangla Yojna, including many other women and child welfare schemes. eRUPI system is not only helpful for women and children but also farmers. This platform is a safe and secure way to receive subsidies.
Employees can reap benefits from eRUPI as they can avail of Medical and CSR services. The distribution of services will be quick, Safer, and contactless. The issuer can track the voucher redemption whenever the employees use it.
eRUPI voucher will work between the specific beneficiary and the benefactor. For example, if you receive an eRUPI voucher for Medical bills, you can use it to pay medical bills only and not for shopping. The voucher can only work once it matches the QR code issued by the NPCI. This system, therefore, enhances safe use of funds and subsidies.
With the eRUPI system, private and public organizations can track how employees use their funds and services. Not only ordinary people but government employees will also be restricted from misusing government funds. If the government gives Rs. 10000/- to officer rank employees (for example, ONGC employees are paid separately for fuel) for Transport allowance, the same amount will now be given through eRUPI QR code, which they can use at the refilling stations only.
One of the greatest advantages of eRUPI system is that you won’t have to go through registration or KYC process to entertain the facilities. To redeem the evoucher, you just need to take it to the concerned service provider. The provider then matches it with their QR codes; if it’s valid, you’ll get the service instantly.
Even though the NPCI has made the eRUPI system highly advanced and secures, the same benefits account for the limitations. Some of the disadvantages of e-RUPI system are worth looking at from consumers’ perspective.
The system is associated with 11 Banks of India, which means that other regional banks would have to wait until the platform succeeds nationwide. Many hospitals and medical institutions may face the same issue.
Many government schemes are meant for disadvantaged and economically weaker sections. Most of them don’t have access to mobile phones. This means they won’t be able to redeem the e-voucher as it requires to pair with the QR code at the merchant’s or service provider’s end.
Provided that eRUPI is a prepaid service, if a user doesn’t redeem it within a specific period, the eVoucher will expire. The beneficiary would have to face problems of eRUPI as they don’t know how to receive it again. The voucher won’t be misused by the service provider but is also believed to be useless for the beneficiaries if they don’t redeem it timely.
Since users don’t need to link their bank account or register elsewhere to redeem the voucher, the system works entirely through mobile phones. The government still has no provisions to check if the consumer with a registered mobile number exists or not. In this case, anyone in possession of a consumer’s mobile can go to the service providers to redeem the eVoucher.
You may have faced server problems if you use payment gateways such as digital wallets, UPI, or internet banking. The eRUPI system works the same way as it needs to be constantly connected. Technological issues are unpredictable and may arise at a point in time. The government and the issuers of eRUPI vouchers need to make sure there aren’t any technical disadvantages of eRUPI platform to cause bottlenecks in the process.
Conclusion on Pros and Cons of eRUPI
It’s a commendable initiative from the government towards user’s privacy and providing services to deserving consumers only. But, the pros and cons of eRUPI platform clearly pinpoint the areas where rectification is required. Given that the system is in its infancy, eRUPI is expected to bring more security features in the future.
It does provide away with the need for a digital payment app, card, or internet banking service by giving the voucher to the beneficiary's mobile phones. According to a survey, 32 percent of Indian consumers do not use or have access to mobile banking.
e-RUPI has been designed as a cashless application. This software can be sent using an SMS string or QR code system to the mobile phone of the country's general public. Beneficiaries can download this program on their phone by sending an SMS message or scanning a QR code.
The maximum amount allowed for each e-RUPI voucher has now been set at INR 10,000. Furthermore, up to 10 e-RUPI coupons can be given on a single mobile number for Covid-19 and related healthcare services.
The Reserve Bank of India's e-RUPI is the Indian government's attempt to introduce digital currency in the country, created by the National Payments Corporation of India (NCPI), which has developed the current popularity in India.
The e-RUPI system has partnered with 11 banks. They are Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National bank, State bank of India, and Union Bank of India.