January (Republic day) and February (Valentine's day) are festival months. And the term 'gifts' comes up when talking about festivals. Well, how can we forget to gift our dearest ones? After all, the best gifts are those that come from the heart. This holiday season, the government has chosen to provide us with a better way to give to others - E-Rupi. It is a method of distributing prepaid UPI vouchers.
Do you want to learn more about this amazing invention? Here you have it.
E-Rupi is a one-time use prepaid UPI voucher developed by NPCI (National Payments Corporation of India). It is a digital voucher that a person gets on the phone via SMS or a QR code, and they can redeem it in any center that accepts coupons like these. It tells that you can use the voucher without a credit card, payment systems application, or internet banking.
As of now, it only supports a few services. However, it will not be long before you can use it for many other services, such as UPI. Everything is dependent on the achievement of this digitalization.
In a nutshell, E-Rupi is a gift certificate, keeping the technical stuff aside. To redeem the gift voucher, you must use a medium such as a card, mobile app, or internet banking.
However, this is not the case with E-Rupi. You can redeem the UPI prepaid voucher without using any of the above methods. It is because the bank sends the voucher via SMS or QR code. As a result, even if you do not have an internet connection, you can still use vouchers.
The UPI prepaid voucher can be issued as a Person-to-Person (P2P) or Business-to-Consumer (B2C) transaction. The following parties are crucial :
1. The Issuer Bank: This is a bank that begins the request to yield a UPI prepaid gift card on UPI. There are currently 11 issuing banks from which you can obtain the E-Rupi service.
2. Sponsor: A sponsor is a person who demands the bank produce the UPI prepaid voucher. It could be a corporate, government, or commercial customer of the bank.
3. The beneficiary of a Prepaid Voucher (PV): As the name implies, the beneficiary is the receiver of the prepaid voucher. They can redeem the voucher, gift card, or coupon even if they do not use UPI or have a bank account.
4. Designated Merchants: These are businesses where the PV recipient can use the voucher.
5. Acquiring Bank: They allow assigned retailers to accept the UPI Prepaid Voucher.
Digital payment applications like Phonepe, Paytm, and Google Pay do not provide the facility. However, India's unicorn payment apps BharatPe and Pine Labs are on the list to acquire the entities.
Every party on the list - the issuer, sponsor, and recipient can benefit from the innovation. Below are a few advantages of using the E-Rupi.
1. They can promote employee well-being by providing gift cards for healthcare and employee benefits activities.
2. Cashless and contactless payments significantly reduce transaction costs.
3. Authorizing organizations can even track voucher redemption to ensure that employees use them correctly.
4. E-Rupi is encrypted from beginning to end. As a result, the voucher is delivered securely. As a result, it is a secure method of distributing a voucher.
1. There is no third-party involved. As a result, distributing a voucher is cost-effective.
2. Because it is non-transferable, it assures that the voucher can only be redeemed by the beneficiary.
3. There is no negotiated settlement in the protection of the coupon because it must be authorized using a verification code.
4. The issuing procedure is simple and painless. You can do so from the convenience of your own home.
1. You can use the voucher even if you don't have access to the internet.
2. The redemption procedure is not complex. It only takes two steps to redeem a gift card.
3. It ensures that payment is only credited to the service provider after the transaction is completed. As a result, the service provider cannot deceive you by demanding payment in advance.
4. It assures timely payment to the service provider because it is prepaid. And without the involvement of a third party.
5. It also safeguards your privacy because no personal information is shared when redeeming the voucher.
Since E-Rupi is the latest invention by the prime minister of India, Narendra Modi, it is not popular among citizens. This is why only 11 banks have the entities to issue the E-Rupi vouchers.
1. Axis Bank
2. HDFC Bank
3. Bank of Baroda
4. Punjab National Bank
5. IndusInd Bank
6. Indian Bank
7. Kotak Bank
8. Union Bank of India
9. Canara Bank
10. ICICI Bank
11. State Bank of India
Gift certificates were nothing short of a miracle. But E-Rupi carries the gift-giving tradition to new heights, which allows you to take care of your well-wishers by granting UPI Prepaid Vouchers. It has an advantage over other methods because of its numerous benefits. It can become the industry's future.
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