e-RUPI voucher issuance surges in February, but redemption remains low, ET BFSI
Issuance of e-RUPI vouchers by banks surged in February, primarily pushed by Indian Bank and State Bank of India, however redemption volumes remained low, in line with information from the National Payments Corporation of India (NPCI).
Indian Financial institution generated 507,550 e-RUPI vouchers in February, a major bounce from 110,625 in January. State Financial institution of India adopted with 126,810 vouchers, up from 106,084 within the earlier month. Regardless of the surge, solely a fraction of the issued vouchers had been redeemed, with Indian Financial institution and State Financial institution of India recording redemption charges of 8.4 % and 6.5 %, respectively, in February.
In January, redemption volumes stood at 20,203 for Indian Financial institution and 67,221 for State Financial institution of India. The hole between issuance and redemption means that many vouchers stay unutilised, probably resulting from restricted consciousness or challenges within the redemption course of.
What’s e-RUPI?
e-RUPI is a purpose- and person-specific digital voucher used to sponsor advantages and providers comparable to scholarships, medical bills, fertilisers, and subsidies. It operates as a QR code or SMS-based digital answer that may be redeemed at service provider centres enabled for e-RUPI acceptance. The voucher is capped at Rs 100,000 for government schemes and Rs 10,000 for personal entities, with utilization restricted to peer-to-merchant (P2M) transactions.
As a cashless and contactless fee mechanism, e-RUPI eliminates the necessity for playing cards, digital wallets, or web banking, making it an environment friendly answer for focused profit distribution.
