Karnataka government has become the first state to e-Rupi disbursement for scholarships of eligible students.

Why in news?

• The Karnataka government’s e-Governance department has partnered with the National Payments Corporation of India (NPCI) and State Bank of India (SBI) for enabling and implementing ‘e-RUPI’, a cashless and contactless payment solution to students under its scholarship programme.

About Karnataka and e-Rupi

• e-RUPI will be used to ensure a leak-proof delivery of education fees of eligible students by paying digitally to the college or institute by the Karnataka government.
• The Karnataka government will get e-vouchers delivered to the mobiles of eligible students. The voucher code can be received on the feature phone also. The students will be able to redeem e-RUPI at the identified colleges or institutes for the intended purpose of fees payment, NCPI said in a release.
• For redeeming e-RUPI, the identified institutes will scan the QR code or SMS string displayed by the students using an application or POS machine, and this process will remove the requirement of any physical token delivery for the students to avail of the scholarship.