e-RUPI and the Financial World
e-RUPI, a game-changer technology-driven payment method introduced by the Government of India (GOI) for the rural populace is said to benefit the target audience in abundance. It is an SMS/e-voucher based one-time payment method where individuals can avail government benefits/schemes without the need for a bank account. While it will help and enable the rural population in multiple ways, the benefits to the financial world is another interesting aspect of e-RUPI introduction.
Benefits to the financial world
- With India’s rural populace touching 65.07%, e-RUPI will enable finance-based organizations to penetrate rural areas that were earlier untapped.
- Making use of its unique feature of “digital sender to the offline receiver”, banks can also cater to areas with limited to no internet connections.
- Banks can make use of the transparency aspect of e-RUPI and can choose specific needs they want to cater to.
- Since e-RUPI is government enabled, the risks on banks decrease and further gives them a sense of safety while transacting with the rural population.
- With the implementation of e-RUPI, intervention of multiple digital partners can be circumvented.
While the first phase of e-RUPI specifically benefits masses to avail Covid-19 vaccines, it aims at catering to 190 million unbanked citizens of India. Furthermore, it also aims at providing equal benefits and opportunities across sectors. Like any other service, e-RUPI has its own set of risks involved yet, it is considered as the next big step towards an advanced and digital India.