RBI Monetary Policy: India's Central Bank raises cap on e-RUPI vouchers to Rs 1 lakh, allows multiple-usage

Prime Minister Narendra Modi in July last year launched e-RUPI, and had said the voucher-based system will play a huge role in making DBT more effective

The Reserve Bank on Thursday increased the cap on the e-RUPI prepaid digital vouchers to Rs 1 lakh from Rs 10,000 and permitted its usage multiple times to facilitate digital delivery of various government schemes to the beneficiaries.

The e-RUPI prepaid digital voucher, developed by the National Payments Corporation of India (NPCI), was launched in August 2021 as a person-specific and purpose-specific cashless voucher with a cap of Rs 10,000 and single time redemption facility.

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"To facilitate digital delivery of various government schemes to the beneficiaries, it is proposed to increase the cap on the amount for e-RUPI vouchers issued by Governments to Rs 1 lakh per voucher and allow the use of the e-RUPI voucher multiple times (until the amount of the voucher is completely redeemed)," RBI Governor Shaktikanta Das said.

Das said there are other use cases being actively considered by various state governments and the central government ministries and departments.

To facilitate changes, necessary instructions to the NPCI will be issued separately.

This will further facilitate the delivery of various government schemes to the beneficiaries more efficiently, he said while unveiling the bi-monthly monetary policy.

Prime Minister Narendra Modi in July last year launched e-RUPI, and had said the voucher-based system will play a huge role in making DBT (direct benefit transfer) more effective in digital transactions in the country.

The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access at the service provider.

Trade Receivables Discounting System (TReDS) facilitates discounting and financing of receivables of micro, small and medium enterprises (MSMEs). TReDS settlements are carried out through mandates in the National Automated Clearing House (NACH) system.

"Presently, the amount of the NACH mandate is capped at Rs 1 crore. To encourage innovation and competition through increased participation, 'on-tap' authorisation of TReDS operators was introduced by Reserve Bank in October 2019," Das said.

Effective July 1, 2020, the central government has revised the definition of MSMEs with linkage to their annual turnover as well.

Keeping in view the growing liquidity requirements of the MSMEs and the requests received from the TReDS platforms, he said, it is proposed to increase the NACH mandate limit to Rs 3 crore for TReDS settlements.

Extensive outsourcing of critical IT services, leveraging of technology by the regulated entities of the RBI and increasing use of digital channels by customers expose the regulated entities to significant financial, operational and reputational risks, he said.

"A need was, therefore, felt to review and consolidate the extant guidelines. Accordingly, two draft directions will be issued for comments of stakeholders and members of the public -- Reserve Bank of India (IT Outsourcing) Directions, 2022; and Reserve Bank of India (Information Technology Governance, Risk, Controls and Assurance Practices) Directions, 2022," he said.

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