Between the years 1990 and 2018, the social security and welfare revenue expenditure of India was more than INR1.6 trillion. Observers point out that much of this did not reach the beneficiaries as mediators consumed the lion’s share. The central government is implementing a new mode to tackle this issue.
For years the RBI’s aversion towards digital currencies was attributed to the bureaucratic influence from administrations. Now the same administrations are taking steps to approach the future of the economy. e-RUPI is the nation’s latest digital nudge in the financial revolution that will certainly improve the efficiency of welfare programs. More importantly, it will pave a smoother path for the digitization of currency in India.
e-RUPI connects the beneficiaries of the service and the service providers digitally. This avoids all physical interventions, rendering the need for mediators moot. It ensures that all payments are completed only when the transaction is concluded.
How Does It Work?
The concerned entity delivers a QR code or an SMS string to the beneficiary’s phone. This enables the user to access it as e-RUPI, a contactless digital payments system. It is similar to a prepaid gift voucher redeemable at select centers. This eliminates all needs for any debit or credit card, internet banking, or even a mobile app. The connection between the service provider and the beneficiary is strictly digital, making it exceedingly foolproof.
NPCI(National Payments Corporation of India) built e-RUPI on its other innovative venture, the UPI platform. Partner banks of the initiative authenticate the details of the specific persons and the purpose of the transaction with which corporate or government agencies approach them. Beneficiaries identify using their mobile number. The banks also provide a voucher to the service provider with the name of the respective beneficiary. This is delivered to the same individual with all security parameters met.
Advantages of e-RUPI
The primary advantage the government notes is a leak-proof proof delivery of all welfare schemes and services incorporated. This may even include schemes for providing medicine and drugs for deserving citizens without hassle or bureaucratic delay.
With more than 17.1% of the entire youth populace being female, it is highly essential to ensure that welfare schemes for women be efficient and devoid of foul play. That is why Mother and Child welfare schemes are also included under the banner. Other major programs set to adopt e-RUPI are TB eradication programs, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer and farming subsidies, etc.
The government recommends the private sector utilize this option as well. The system can be used for CSR(Corporate Social Responsibility) Programmes and employee welfare. Once the corporate sector embraces the benefits of such a system, the national economic landscape will witness terraforming.
e-RUPI vs. Digital Currencies
Despite a frigid history of India’s aversion for digital currencies and the looming concern of a pan-nation crypto ban, the government and associated agencies are taking all steps to transform that image. They are already working on a central bank digital currency(CBDC). This coupled with the potential of e-RUPI to fill the wedges in digital payment infrastructure can result in a successful future for digital currency in the country.
But the catch is that, unlike digital currencies, e-RUPI is still backed by the existing INR as the underlying asset currency. This makes it more of an advanced voucher system than a sophisticated digital currency. Nonetheless, this is a step in the right direction for the whole nation, as financial digitization is certainly an inevitable factor.
How Can Signzy Help?
With even currency being digitized, the Indian financial ecosystem faces challenges in determining the legitimacy of parties involved in digital transactions. Fortified and secure instruments are needed to ensure that all customers, beneficiaries, providers, and even companies are credible. Signzy helps you do exactly that!
We are an RPA-platform for financial and regulatory services. With our state-of-the-art AI-powered technology with a quiver of APIs, products, and resources customizable for your specific needs, none of the hurdles that come with adapting to e-RUPI is an issue. We can make your transition smooth and seamless. Be it KYC of your customer, or a provider approaching your financial institution, we can craft the exact solution you need. Your safety and satisfaction are our priority.
Signzy is an AI-powered RPA platform for financial services. No matter how complex your workflow or operational complexity, Signzy is able to completely automate your back-operations decision-making process into a real-time API. This is possible due to a combination of Nebula — Our no-code AI model builder and our Fintech API Marketplace of over 240+ APIs. Today we work with over 160+ FIs globally including the 4 largest banks in India and a Top 3 acquiring Bank in the US. Globally we have a strong partnership with Mastercard and offices in New York and Dubai to serve our customers in the 2 geographies. Our Product team of 120+ people is building a global AI product out of Bangalore.
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