By : Satyaki Paul
On August 02, 2021 our Hon’ble Prime Minister Modi introduced the new digital payment solution titled “E-RUPI”. In this context, the available information’s suggest that E-RUPI is a moneyless and contact-free digital payment method, which will be delivered to mobile phones of beneficiaries in form of an SMS-string or a QR (Quick Response) code.
The application, has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority. The platform will be a person-specific and purpose-specific payments system.
PM Modi in his speech observed that, “E-RUPI is expected to ensure a leak-proof delivery of welfare services”. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB purge programmes, drugs & diagnostics under schemes like Ayushman Bharat, fertiliser subsidies etc. The Union Government also observed that even the private stakeholdersin similar manners of Government stakeholders can regulate these digital tickets as part of their employee welfare and corporate social responsibility (CSR) programmes.
Nonetheless, both the Union Government and the RBI is working towards introducing a central bank digital currency in the near future. This is because of the current boom in the cryptocurrencies such as Ethereum, Bitcoin, etc. across the world. The E-RUPI is a step in such direction. But if we look into E-RUPI, it is still backed by Indian rupee as the underlying asset and specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system. The RBI has proposed four strong cases for the developed of an Indian cryptocurrency, such as (i) There is a boom in use of Paytm, Gpay, etc. in recent times for conducting small value transactions, (ii) Our country’s high currency to GDP ratio, (iii) The excessive use of volatile cryptocurrencies, (iv) An indigenous digital currency might also act as a bulwark against the market related risks for public consumers. Thus, such technology if properly implemented in the ground level can aid the poor populace as a tool for their own development.
In global context, such proposed model is already applicable in countries such as United States, Sweden, etc. wherein education vouchers or school vouchers, which is a certificate of government funding for students selected for state-funded education to create a targeted delivery system. These are essentially subsidies given directly to parents of students for the specific purpose of educating their children. These models can be replicated with a bit of altercation in Indian context in a much larger scale i.e., for all. So, the E-RUPI has the necessary embodiment of public welfare to reinforce the Direct Benefit Transfers (DBT) for the destitute masses thereby alleviating them from poverty and the joblessness induced by the COVID19 pandemic. This will ultimately result in reducing the digital divide amongst the masses and make way for Atmanirbharta amongst them.