PM Narendra Modi has launched a person and purpose specific digital payment solution e-RUPI. Apart from being a cashless and contactless instrument for digital payment, e-RUPI is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access.
Below are the insights from Bharat Panchal, Chief Risk Officer for India, Middle East & Africa for FIS.
“The new digital payment mode– e-RUPI– is basically a prepaid voucher that can be issued directly to citizens after verifying mobile number and identity. e-RUPI voucher will be delivered in the form of a QR code or SMS string-based e-voucher to the beneficiary’s mobile number.
The beneficiary can redeem the voucher without a card, digital payments app or internet banking access, at the service provider. This would be very useful instrument for those who are not privy to use to the digital platform yet the government can extend monetary support in digital form directly to citizens in a “leak-proof manner” in the form of prepaid e-voucher powered by UPI.
However, some stronger controls may be required to monitor any possible frauds. If real beneficiary starts encashing such vouchers in lieu of cash than it would be difficult to trace such pre-paid instruments once it start to move from one hand to other. Therefore , It would be very effective to match the beneficiary’s details at the time of redemption to make sure that real beneficiary only is using it and not someone else.”