An Essay On ‘e-RUPI – India’s First Digital Currency’

e-RUPI: Prime Minister Narendra Modi launched the e-RUPI on August 2. It is India’s first digital currency. It is a cash and contact less payment mode. Now let’s read an essay on e-RUPI.

What is e-RUPI ?

India’s first digital currency is e-RUPI. Prime Minister Shri Narendra Modi launched digital payment solution e-RUPI on August 2, 2022. It is a cash and contact less payment mode. Digital rupee will be an alternative option to cash payments. That is, instead of paying cash, payment can be made in this digital rupee. National Payments Corporation of India (NPCI) has developed e-RUPI with their UPI service. However, the Department of Economic Services, Ministry of Health and Family Welfare and National Health Organization have helped in this regard.

It is based on QR code and SMS string which works as an e-voucher. Under this service, the user will neither need a card, digital payment app nor internet banking access to make payments. The RBI also believes that the Central Bank Digital Currency (CBDC) should also develop an offline mode in which transactions can be made with digital rupees. This will enable more and more people to use digital currency. It is similar to paper currency, which has sovereign value. The value of the digital currency will also be equal to the current currency and it will be accepted in the same way. CBDC will appear as a liability in the balance sheet of the central bank.

What are the benefits of e-RUPI ?

It is being said that the e-RUPI platform can be used in many ways. It can help in many social welfare schemes. Mother and child welfare schemes, TB eradication projects will be useful in providing drug and nutritious food support. Ayushman Bharat can prove helpful in schemes like Pradhan Mantri Jan Arogya Yojana, Fertilizer Subsidy.

According to the government statement, the welfare of employees can be done using this digital voucher in the private sector as well. Apart from this, e-RUPI can also be used for various social welfare activities carried out by corporate offices.This digital payment solution aims to make online payments easier and safer.

Prime Minister Modi had also informed about some of its benefits through his official Twitter account. In the tweet, he said that e-RUPI will be a cashless and contactless digital payment service. This service will digitally connect sponsors and beneficiaries. It will also ensure leak-proof delivery of various welfare services.

Why was e-RUPI launched in the country?

According to RBI’s concept paper, RBI wants to reduce the huge cost of managing physical cash in the country. Think of it as RBI now wants to reduce the cost of printing, circulating and distributing the notes. RBI wants to increase the efficiency of the payment system and also wants to innovate in it. This will enable new approaches in the cross-border payments space. Digital currency will be a virtual currency that is free of any kind of risk and people will be able to use it with full confidence. The digital currency will also work in areas where there is no electricity or mobile network thanks to its offline feature.


A survey found that 85 percent of Indian villagers use mobile phones. According to the 2019 report, about 277 million mobile phone users are rural, on the other hand, 227 million users live in cities. It is expected that by 2023 everyone will be aware of e-RUPI. Only a mobile number is required for e-rupees exchange. No need to provide Aadhaar number or bank account details separately.

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