E-vouchers introduced by the Government of India, such as the e-RUPI, are digital payment instruments delivered to beneficiaries via SMS or QR codes for various services like health care (COVID Vaccine), donations, scholarships(education), subsidies, corporate gift vouchers, etc.
They are prepaid, purpose-specific vouchers that enable seamless and contactless transactions without requiring bank accounts.
Key Features
- Prepaid and Purpose-Specific: Ensures funds are utilized only for designated purposes, such as healthcare, education, or subsidies
- Delivered Digitally: Sent through SMS or QR codes for convenience
- No Bank Account Needed: Beneficiaries can use the vouchers without a formal banking setup. e-RUPI shall be permitted to be redeemed only for the purchase of goods and services from designated merchant bearing valid Merchant Category Code (MCC) – as may be defined by the Issuer at the time of issuance of e-RUPI
- e-RUPI shall not be permitted for cash out or cash back on redemption
- Easy Redemption: Can be redeemed at designated service providers by scanning the QR code or providing the SMS
Benefits for Small Businesses and Entrepreneurs
- Simplified Payments: Businesses can accept payments through e-vouchers, ensuring faster transactions
- Targeted Subsidies: Entrepreneurs in sectors like healthcare or education can leverage these to offer government-subsidized services to customers
- Boost to Digital Adoption: Encourages small businesses to integrate digital payment systems for growth
- Enhanced Customer Base: Beneficiaries of these vouchers become potential customers for businesses accepting them
e-RUPI Partners: https://www.npci.org.in/what-we-do/e-rupi/e-rupi-live-partners
Advantages Over Traditional Payments
- Contactless and Secure: Reduces dependency on cash, ensuring hygiene and safety
- Faster Transactions: No need for lengthy authorization or banking processes
- Purpose-Specific Usage: Eliminates misuse of funds, ensuring intended beneficiaries and objectives are met.
- Ease of Distribution: Digital delivery saves time and logistics costs compared to physical vouchers or cash
E-vouchers are a step forward in India’s push towards a digital economy, offering immense benefits for businesses and enhancing transparency in fund utilization.
Hope you find this information in adopting e-RUPI for your business and driving efficiency.
You can read other helpful articles:
- Understanding Digital Payments in India
- What is ‘Jan Dhan-Aadhar-Mobile’ (JAM) Approach used in India?
- Goods and Services Tax (GST) Registration – Should you apply or not?
- One Person Company (OPC) vs. Sole Proprietorship
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