Hriday Arora says that e-Rupi would be the next best method for going cashless
Remember rummaging through the purse nervously, trying to find a 100-rupee bill to pay the grocer, or trying to flip the contents of the bag out to find that 20-rupee note? These seem to be distant memories from 3-4 years ago. Coming to think of it, using cash when there are other and easier alternatives available of payments is hardly seen anywhere now. As time is passing, it is clear that UPI transactions are making lives easier. They are hassle-free, easy to manage, maintain a record of themselves automatically, quick, and getting change through them doesn’t accumulate two-rupee and one rupee coins saddling down the pockets.
Keeping the same in mind, a young author with a knack for creativity, Hriday Arora talks about how digital methods of monetary transactions are taking over the traditional methods of transferring money, bringing ease to the overall process.
Is cash in a trajectory to dismantle, or would there be a time where cash would be obsolete? Simply put yes, but when, no one knows. The government has been adamant about selling the whole two yards of this newfangled cashless digital e-voucher: the e-RUPI. Most developed countries already have a system of digital economies, where going cashless is the new normal. Calling cash obsolete would be untrue as a sizeable amount of people do use cash, but the shift is undeniable. The government is playing a major role with its policies almost nudging individuals in the direction of cashless payments.
The statement “cash is king” is transforming. Cash has problems, namely: losing it, decomposing, paper tear, and much more. Destruction of cash is pretty simple and so is manipulating it. Hence, people are leaning into the idea of a single hub to handle the payments. The advantages are more than enough and there are enough statistics to support the claim. Now, it might take some time to turn the heads of traditionalists and people unaware of these services but the steps in the right direction are already being made.
The Indian government’s stance on UPI states: “The Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy.” (extract from DEDPD). Not only does the government show its AA support through statements, but also through actions. The country has seen a downward trend in the cash exchanges and the government is all for it.
Coming to e-RUPI, the concept is very new. It is a cashless, and contactless method of making digital payments and will function like a QR code or an SMS string code. Many have compared it to a voucher that can be redeemed at most mainstream banks (Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indusind Bank, Indian Bank, Kotak Bank, Punjab National Bank, State Bank of India, Union Bank of India). The most interesting feature however is that it doesn’t require a credit or debit card, or net banking. It essentially cuts out the mediators who usually cause a surcharge on the bill and manages to connect individuals to the sponsor or beneficiary of the e-RUPI without any physical interaction.
e-RUPI has the potential to have high reaching capabilities and influence. The agency or firm in question looking for an e-RUPI voucher has to approach one of the banks in the list and state their purpose for the declaration of the voucher and the beneficiary of it. The bank checks the beneficiary’s mobile phone number and allocates an e-RUPI voucher in the name of that person. It will ensure safe and secure cash transactions and payments, it will also act as a mediator in a trade deal as the bank can hold out issuing the voucher until said trade is complete by both parties. The biggest objective fulfilled by it, is the payments for welfare schemes such as Ayushman Bharat, Tb drives, fertilizer subsidies, etc. Even corporations can make use of it by using it for employee benefits and welfare policies.
e-RUPI is also setting the precedent about their commitment to the digital payment market, which is vast, and only with government backing can it thrive and be successful. It is also predicted that the government is also working on its own e-currency trying to reduce the use of cash as much as it can.
The e-currency that the Reserve Bank of India has been working on is the central bank’s digital currency. They will roll it out in phases. In most regards, it is to be treated as the existing INR, but it would be digital and issued by the Central Bank.
India is going onwards and upwards to embrace digital and it could be ascertained that this paradigm shift will likely benefit a large number of people to grow effectively.
The high school student from Presidium School, Gurugram, Hriday Arora with his in-depth analysis of the digital money transfer application has laid a firm foundation of the advancements leading to a revolution in easy transactions.
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