e-RUPI: The central bank RBI (RBI) has today increased the limit of e-Rupee prepaid digital vouchers by ten times.
e-RUPI: The central bank RBI has today increased the limit of e-Rupee prepaid digital vouchers by ten times. RBI has today (February 10) increased its limit from Rs 10,000 to Rs 1 lakh. Apart from this, earlier this voucher could be used only once but now its beneficiaries will be able to use it multiple times for digital delivery of various government schemes. It is a cashless and contactless mode of payment. The biggest advantage of this is that the government can directly transfer money for welfare schemes to the account of the beneficiaries and it can be used for the same work for which the money has been sent. RBI Governor Shaktikanta Das said that the necessary instructions for these changes will be issued separately by the National Payments Corporation of India (NPCI).
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What is e-rupee?
E-Rupee is a cashless and digital payment system medium that is received by the beneficiaries in the form of SMS string or a QR code. It is in a way similar to a gift voucher which can be redeemed at specific accepting centers without any credit or debit card or mobile app or internet banking. The e-Rupee prepaid digital voucher has been developed by National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority. It was launched last year in August 2021 as a person-specific and purpose-specific cashless voucher and single time redemption.
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How does the e-RUPI system work?
This voucher is received in the form of QR code or SMS string in the mobile of the beneficiary. After that users can redeem it. It can be understood with an example that as the government has sent e-rupee to the beneficiary under any scheme for free treatment, then the beneficiary will take it to the hospital where it can be redeemed.
What is the benefit of today’s decision of RBI?
Earlier, there was a cap of 10 thousand rupees on e-rupee and it had to be redeemed in one go. Now by increasing the limit by RBI and allowing multiple use, the facility will increase. As earlier, the entire amount of the voucher had to be used in one go, but now until the entire amount is spent, the voucher can be redeemed. Apart from this, increasing the limit will accelerate digital delivery under government schemes.
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Launched in July last year
E-Rupee was launched by PM Modi in July last year. At the time of its launch, Prime Minister Modi had said that Direct Benefit Transfer (DBT) will be more effective in digital transactions in the country with the voucher based system. This will ensure that the given amount is being used only for the stated purpose.
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