e-Rupi limit hike to promote offline digital payment push

What is the News?

Reserve Bank of India(RBI) has increased the e-Rupi voucher limit to Rs 1 Lakh from Rs 10,000.

RBI has also allowed one e-Rupi voucher to be used multiple times until it has been fully redeemed.

What is e-Rupi?

e-Rupi was launched in August 2021. It is a cashless payment product.

​​e-Rupi voucher allows users to redeem it without a card, digital payments app or internet banking access at the merchants accepting UPI e-prepaid vouchers. 

Key Features of e-Rupi

Firstly, unlike other digital payment formats, e-Rupi does not require beneficiaries to have a bank account. 

Secondly, e-Rupi works on basic phones also and hence it can be used by people who do not own smartphones or in places that lack an internet connection, thereby promoting offline payments.

Future of e-Rupi

The e-Rupi could be used for some future linkages, such as between the e-Rupi and the proposed digital currency slated to be issued in fiscal 2023 by RBI.

Must read: Digital Rupee: Advantages and Challenges – Explained, pointwise

Source: This post is based on the article “e-Rupi limit hike to promote offline digital payment push” published in Livemint on 14th Feb 2022.

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