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What is the news?
Government of India recently launched e-RUPI which can make welfare payments easier and more efficient, and to an extent looks like the precursor of a Central Bank Digital Currency (CBDC).
| Must Read: What is e-RUPI and how does it work? |
What will e-RUPI be used for?
The most immediate use of e-RUPI is for welfare payments and services related to health such as
- Drugs and nutritional support under ‘mother and child’ welfare schemes
- Tuberculosis eradication schemes.
- Drugs and diagnostics under the Pradhan Mantri Jan Arogya Yojana.
- Fertilizer subsidies.
- e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface or intermediary.
- It has been launched with the aim of ensuring that such payments are transferred to the beneficiary without any leakage or scope for corruption.
Is e-RUPI a cryptocurrency?
No. e-RUPI is not a cryptocurrency. A cryptocurrency is based on a blockchain and ownership is secured by private and public keys. e-RUPI doesn’t use this type of technology.
- The Reserve Bank of India (RBI) is reportedly exploring a Central Bank Digital Currency (CBDC) for the country, but this is different from e-RUPI, which has been developed on the UPI.
- However, e-RUPI can be a step towards a CBDC.
Terms to know:
