The above is news from Indian Express. Just read the highlight | ECONOMY by VIVEK SINGH

The above is news from Indian Express. Just read the highlighted part properly and follow my explanation below..... u will understand everything.

When I used to work in IBM (Bangalore), our company used to give us "food coupons" worth some Rupees let us say (Rs. 50). We used to give this food coupon to the various food contractors (IBM had selected those contractors) who used to supply food in the IBM campus and in return we used to get lunch. So, here there are three parties... the IBM employees (beneficiaries), IBM (the Sponsor) and the Contractor (Service provider).

IBM gave us 'food coupons' rather than money (rupee note) because IBM wanted to give its employees some benefit BUT only in the form of consumption of lunch/dinner. If IBM would have given us Rs. 50... then we would have consumed something else also. So, these food vouchers are not Rupee notes rather they are BACKED by rupee and can be used only for specific purpose. So, these two things 'specificity' and 'not rupee but backed by rupee' makes these food vouchers different from 'Indian Rupee'.

So, IBM was giving us Rs. 50 benefit on a daily basis (in the form of food coupons). If this kind of voucher (food coupons) is given by Govt. to all the farmers through which they can purchase fertilizers from specific shops at the market price. So, let us say if Govt. wants to give Rs. 3000 fertilizer subsidy to every farmer then it can give 'fertilizer vouchers' to all farmers and the farmers can use these vouchers to purchase fertilizer from specific shops. (Right now shops sell fertilizers at below market price and govt transfers money into shops account). Fertilizers prices will be deregulated and leakage will also get removed.

Now, e-RUPI is just a digital form of 'voucher'. e-RUPI can be in the form of 'QR Code' or 'SMS String' and will be delivered to the mobile phones of individuals, to whom the benefit/subsidy has to be given.
So, now if Ministry of Fertilizer wants to give fertilizer subsidy to Indian farmers then, the Ministry will approach partner banks and the ministry will have to provide the farmers mobile no. to the banks and the banks will deliver these vouchers (e-RUPI) to the farmers mobile in the form of 'QR Code' or 'SMS String'. Whatever value of 'e-RUPI' (vouchers) will be allocated to the farmers, the same amount Ministry will have to transfer to partner banks. Now, when the farmers will go to the specific shops to purchase fertilizers and rather than paying cash they will scan the 'e-RUPI' (sms String or QR code), then the fertilizer shops will receive the payment from the partner banks and farmers will be able to purchase the fertilizer.

e-RUPI has been developed by National Payments Corporation of India (NPCI) on its UPI platform.