How e-RUPI can make welfare payments easier?

Source: Live Mint

What is the news?

Government of India recently launched e-RUPI which can make welfare payments easier and more efficient, and to an extent looks like the precursor of a Central Bank Digital Currency (CBDC).

Must Read: What is e-RUPI and how does it work?
What will e-RUPI be used for? 

The most immediate use of e-RUPI is for welfare payments and services related to health such as  

  • Drugs and nutritional support under ‘mother and child’ welfare schemes  
  • Tuberculosis eradication schemes.
  • Drugs and diagnostics under the Pradhan Mantri Jan Arogya Yojana.
  • Fertilizer subsidies. 
  • e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface or intermediary. 
  • It has been launched with the aim of ensuring that such payments are transferred to the beneficiary without any leakage or scope for corruption. 
Is e-RUPI a cryptocurrency? 

No. e-RUPI is not a cryptocurrency. A cryptocurrency is based on a blockchain and ownership is secured by private and public keys. e-RUPI doesn’t use this type of technology.

  • The Reserve Bank of India (RBI) is reportedly exploring a Central Bank Digital Currency (CBDC) for the country, but this is different from e-RUPI, which has been developed on the UPI.  
  • However, e-RUPI can be a step towards a CBDC.  

Terms to know:

Print Friendly and PDF