Is E-Rupi Ready To Change The Payment Dynamics?

With UPI being one of the most successful projects in India, e-RUPI is grabbing headlines. This is the system through which you would transact with digital cash. This article digs deeper into the benefits and functioning of this innovative payment mechanism

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Last year, the Reserve Bank of India (RBI) stated that it was working on a gradual deployment of its own digital currency. The RBI has announced the start of the first phase of the retail e-RUPI pilot. Any currency, money or money-like asset that is largely handled, saved or exchanged on digital computer systems, particularly through the internet, is referred to as digital currency (digital money, electronic money or electronic currency). Crypto currency, virtual money and central bank digital currency are all examples of digital currencies. In this article, we have decoded what e-RUPI is, how it works, the fundamental differences between e-RUPI and UPI, and whether or not this mechanism is ready to transform the payment dynamics.

Defining e-RUPI

On August 2, 2021, India's Prime Minister Narendra Modi introduced the e-RUPI Digital Platform, a digital payment platform. This platform will be used to make digital payments and is cashless and contactless. The National Payments Corporation of India (NPCI) created this digital payment facility on its Unified Payments Interface (UPI) platform. In a nutshell, this is a form of digital cash. The Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MOHFW) and partner banks are among the collaborators. This effort will link service sponsors with recipients and service providers. The link will be maintained digitally, with no physical contact.

Working of e-RUPI