The launch of the Digital payment solution eRUPI, and how it can benefit the Indian populace.
The first Monday of August saw Prime Minister Narendra Modi on the screen as he introduced eRUPI, a person and purpose-specific cashless digital payment solution.
eRUPI is aimed to transform and upgrade the current way the government allocates subsidies.
It should be noted, that for a long time, there have been countless updates in the way the Indian government provided subsidies to the people who needed them.
Earlier, subsidies were given as a price decrease to the people. As a result, the economically weaker sections of society would pay a lower amount for an essential house commodity like an LPG cylinder than the rest.
However, with fundamental defects in the system, like corruption and intermediary leaks, many people for whom the scheme was intended, never got to benefit from them.
With eRUPI, the government seeks to upgrade this very system.
“eRUPI will ensure that the money is being used for the purpose for which any help or any benefit is being provided’’, observes the Prime Minister.
With eRUPI, the government shall be able to provide eRUPI vouchers, that can be generated as a form of a string of code or a text message that can then be used to pay only for the commodities that the subsidy is meant for and only by the people that the voucher has been allocated to.
This scheme does echo something adopted by our western partners but adds an additional layer of coupon to beneficiary mapping.
Evidently, if made robust, this system of subsidy shall leave no room for errors or leaks.
However, only time shall tell how greatly could be the impact of this digital payment solution and how much it can benefit the populace. As of now, it seems promising but without further details, it looks like a coupon code with a fair possibility to be misused.