e-RUPI and the Financial World

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

  1. With India’s rural populace touching 65.07%, e-RUPI will enable finance-based organizations to penetrate rural areas that were earlier untapped.
  2. 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.
  3. Banks can make use of the transparency aspect of e-RUPI and can choose specific needs they want to cater to.
  4. 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.
  5. 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.

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