January 24, 2023

eRUPI vs UPI: Understanding the difference

In our last blog, we learned about eRUPI and how it will transform the current financial ecosystem. Now, let’s look into the key differences between the two pillars of digital payments- eRUPI vs UPI.

Before we dive deep, let’s spend a few minutes and have a recap on -what eRUPI and UPI actually mean. eRUPI is an electronic version of cash while UPI is a payment method that empowers multiple bank accounts into a single mobile application.

eRUPI vs UPI: The key differences between the two

  • In eRUPI, you can store your money in your wallet and directly transfer the money from your wallet to the recipient’s wallet. The banks will not route your payments via any middlemen
  • In UPI, the bank acts as an intermediary and debits your bank account, and transfers the money to the recipient’s bank account.
  • With eRUPI, you do not have to give instructions to the bank since the money is transferred directly. While in UPI, you give instructions to your bank to transfer money from your account to the recipient’s bank account.
  • While UPI is a payment platform for making payments through debit or credit card, net banking, mobile wallet, etc, eRUPI is just like spending your money digitally.
  • You cannot track your money paid through UPI but eRUPI facilitates payment tracking
  • eRUPI is operated by the Reserve Bank of India while UPI is developed by the National Payments Corporation of India.

eRUPI involves the anonymity of your account data hence it is completely confidential. But with UPI, your banks will handle your data.

The Future of Digital Payments is here

Digital Payments have facilitated smooth payment by untangling the complex procedures involved in payment transactions before. Earlier when we found it relatively difficult to stand in long queues to withdraw money, the outset of digital payments has reduced the hassles. With UPI payments and other digital payments leading the front, we can expect eRUPI to be highly beneficial in making seamless and easy transaction processing. Along with data privacy, it creates a smooth payment experience journey. The future of payments appears to be in safe hands now. Let’s wait for the official updates from the Reserve Bank of India to learn more.

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