Non-bank companies now authorized to issue digital vouchers. Know more about its functionality.
In the aftermath of the Reserve Bank of India's Monetary Policy Committee meeting, RBI Governor Shaktikanta Das made a noteworthy announcement regarding the repo rate. Notably, the governor emphasized the extended scope of the e-RUPI voucher, allowing non-banking companies to partake in its issuance.
Delving further into the matter, the governor stated that non-banks have been granted permission to simplify the process associated with e-rupee vouchers. He also emphasized the need to streamline the issuance and redemption processes of e-RUPI vouchers, which were previously exclusive to banks. By doing so, Governor Das believes that this development will further enhance digital penetration.
Now, let's explore what exactly the e-RUPI voucher entails. Launched in August 2021, this digital voucher operates within the framework of the Unified Payments Interface (UPI) system, overseen by the National Payments Corporation of India (NPCI). Initially, banks were the sole issuers of this voucher on behalf of the Central and State Governments, albeit to a limited extent. Functioning as a cashless and contactless digital payment method, the government has utilized this approach to facilitate its welfare schemes. Remarkably, e-RUPI enables swift and effortless money transfers into individuals' accounts through the scanning of a single QR code, eliminating the need for intermediaries.
Curious about how it operates? Utilizing payment options such as Net Banking and IMPS, the e-Rupee Voucher facilitates money transfers between accounts via QR codes, effectively serving as a prepaid voucher.
So, what advantages does this system bring? Although several banks like SBI, Axis Bank, Bank of Baroda, ICICI Bank, and HDFC Bank have already offered this service, the RBI has now decided to broaden its scope. This expansion primarily aims to benefit individuals who do not typically engage with traditional money transfer or banking services. As an illustrative example, suppose a person is admitted to a hospital and the government intends to provide financial assistance. In such a scenario, the government would furnish a QR code, which the hospital could readily scan to receive the payment.
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