DBT → E-RUPI BY NPCI (2021) Flashcards
What is e-RUPI?
An SMS / QR Code based prepaid, cashless electronic voucher developed by the National Payment Corporation of India (NPCI).
What government entities are involved in e-RUPI?
Department of Financial Services (DFS), National Health Authority (NHA), and supported by the UPI platform.
Give three examples of how e-RUPI can be used by the government.
Providing food for mothers, children, and poor families.
Distributing medicines for diseases like TB and Corona.
Offering fertilizer subsidies for farmers.
How can private companies use e-RUPI?
Employee benefits (gym, golf club memberships, travel)
Corporate Social Responsibility (CSR) initiatives.
What is a key difference between old and new e-RUPI features?
New e-RUPI vouchers can be used multiple times until the balance is gone, while old e-RUPI was single-use.
How has the maximum storage limit for e-RUPI changed?
Increased significantly from ₹10,000 to ₹1 lakh.
Explain how the change in code usability benefits a recipient of e-RUPI.
Provides more flexibility; a single ₹50,000 e-RUPI can now be used for multiple smaller purchases across different stores.
Why do you think a cashless and contact-free payment method like e-RUPI is important for government schemes?
Reduced Fraud and Corruption: Cashless systems minimize opportunities for intermediaries to siphon off or misdirect funds. E-RUPI, specifically, ensures the benefit reaches the intended person for its intended purpose.
Increased Transparency: Digital transactions leave an auditable trail, making it easier to track how funds are allocated and used. This helps ensure money goes where it’s supposed to.
Enhanced Tracking and Measurement: e-RUPI’s design allows for tracking who uses vouchers, what they’re used for, and where. This data helps evaluate the effectiveness of government schemes and make necessary adjustments.
Reaching the Unbanked: e-RUPI, with its SMS/QR code basis, doesn’t require the recipient to have a traditional bank account. This widens the reach of government programs.
Imagine you are working for a large corporation. Design a potential e-RUPI based CSR program.
Target Group: Underprivileged students in communities near their headquarters.
Need/Purpose: Providing access to educational resources (e.g., online courses, software subscriptions, technology for learning).
Distribution: Partner with local schools or NGOs to identify qualified students. Issue e-RUPI vouchers redeemable at approved vendors for educational technology/services.
Impact Measurement: Track voucher usage to see what resources are most popular. Partner schools can provide feedback on student performance and engagement.
What are some potential drawbacks of a payment system like e-RUPI?
Technology Requirement: e-RUPI relies on beneficiaries having some access to technology (at least a basic phone for SMS or ability to scan QR codes).
Potential for Misuse: With any system, there’s a risk of people finding loopholes. Strong regulations and beneficiary authentication are crucial to minimize misuse of e-RUPI vouchers.
Privacy Concerns: Tracking usage in e-RUPI means collecting some data on beneficiaries. There need to be strong privacy safeguards to ensure this data isn’t used for purposes other than program evaluation.
What were the limitations of the e-RUPI voucher program before June 2023?
Only banks were authorized to sell e-RUPI vouchers.
Only governments and companies were eligible to purchase them.
Describe the key changes made to the e-RUPI voucher program in June 2023.
Non-bank prepaid payment instruments (PPIs), like Amazon Pay and Mobikwik, can now sell e-RUPI vouchers.
Individuals became eligible to buy e-RUPI vouchers.
What is the primary goal of expanding the e-RUPI voucher program?
The aim is to increase the accessibility and convenience of using e-RUPI vouchers.
