What is e-rupee and how it works

What is e-rupee and how it works

Whenever one person needs to send money to another person, they want it to reach the recipient quickly. For this purpose, various apps are used, such as PhonePe, Google Pay, Paytm, etc. The Indian government has launched a new payment method called E-Rupee. Today, we will learn about what it is, how it works, and what its benefits are.

When was the E-Rupee launched?

E-Rupee was launched by India's Prime Minister, Shri Narendra Modi, on 2nd August 2021. Many people perceive it as a new payment method, but it is actually a new version of UPI (Unified Payment Interface). UPI was launched on 11 of April, 2016.

What is NPCI?

Both of these payment methods were created by NPCI (National Payments Corporation of India). NPCI stands for the National Payments Corporation of India. Whenever you make an online transaction, NPCI is responsible for processing the payment.

How does it work?

Whenever you need to send a service via QR code or message, it is used. QR stands for Quick Response, which operates swiftly. If someone has a basic phone without a QR code, payment can be made via SMS. SMS stands for Short Message Service, where you receive a code to access the service.

How does the QR code work?

The government designs three QR codes through NPCI. One QR code is kept with NPCI for verification purposes, while the other two are given to banks. One bank provides the QR code to the company, and the company gives it to its employees. The other QR code is given to the hotel, so the expenses incurred by the employee are directly deducted from their allocated funds.

How is the E-Rupee QR code generated?

Banks are currently responsible for generating the E-Rupee QR code. Major banks are already linked, and smaller banks will be connected gradually. For instance, if a company sends an employee to Delhi and allocates them Rs. 50,000 for expenses, the company will purchase a QR code from the bank. The bank will charge a fee for this service.

Benefits of E-Rupee:

The recipient only needs internet access to receive payments. No specific app download or registration is required. Although it's in its early stages, it's expected to grow significantly in the future. Just like how people have adapted to using ATM cards, they'll get accustomed to E-Rupee as well. It will facilitate quick transfer of funds during emergencies, ensuring that the money is used for its intended purpose.

FAQ:

1. What is E-Rupee?

E-Rupee is a digital payment method launched by the Indian government, aimed at facilitating quick and secure transactions between individuals.

2. How does E-Rupee differ from other payment methods?

E-Rupee operates as a new version of UPI (Unified Payment Interface), ensuring faster and more efficient transactions compared to traditional payment methods.

3. When was E-Rupee launched?

E-Rupee was officially launched on 2nd August 2021 by India's Prime Minister, Shri Narendra Modi.

4. Who developed E-Rupee?

E-Rupee, along with UPI, was developed by NPCI (National Payments Corporation of India), a government-backed entity responsible for managing digital payments in India.

5. How does the E-Rupee QR code work?

The QR code system of E-Rupee is designed to ensure that funds are utilized for specific purposes only. It is generated by banks and contains encoded information about the transaction, ensuring transparency and accountability.