Taking the first step towards having a digital currency in the country, PM Narendra Modi has launched an electronic voucher-based digital payment system called E-RUPI.
What is E-RUPI and how does E-RUPI will work?
e-RUPI is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS string or a QR code. This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centers without any credit or debit card, a mobile app, or internet banking. e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.
While addressing the launch of the new platform, Modi Ji said that the E-RUPI voucher is going to play a major role in strengthening the direct benefit transfer (DBT) scheme by the government. He further said that the E-RUPI will help in assuring targeted, transparent, and leakage-free delivery for all.
He also added that the E-RUPI is a person as well as a purpose-specific platform.
Who has developed E-RUPI?
E-RUPI, a cashless and contactless instrument for digital payment has been developed by the National Payments Corporation of India (NPCI) on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority.
What are the uses of E-RUPI?
According to the government, e-RUPI is expected to ensure a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc. The government also said that even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.
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What are the benefits of using E-RUPI?
This contactless e-RUPI is easy, safe, and secure as it keeps the details of the beneficiaries completely confidential. The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher.
Benefits of E-Rupi to Corporates
- Corporates can enable the well-being of their employees
- End to end the digital transaction and doesn’t require any physical issuance hence leading to cost reduction
- Voucher redemption can be tracked by the issuer
- Quick, safe & contactless voucher distribution
Benefits of E-Rupi to Hospitals
- Easy & Secure – Voucher is authorized via a verification code
- Hassle-free & Contactless payment collection – Handling of cash or cards is not required
- Quick redemption process – The voucher can be redeemed in a few steps and lesser decline due to the pre-blocked amount
Benefits of E-Rupi to Consumer
- Contactless – Beneficiary should not carry a printout of the voucher
- Easy redemption – 2 step redemption process
- Safe and Secure – Beneficiary doesn’t need to share personal details while redemption hence privacy is maintained
- No digital or bank presence required – Consumer redeeming the voucher need not have a digital payment app or a bank account
Banks Live with E-RUPI
| S. No. | Bank Name | Issuer | Acquire | Acquiring App/Entity |
|---|---|---|---|---|
| 1. | Axis Bank | Yes | Yes | Bharat Pe |
| 2. | Bank of Baroda | Yes | Yes | BHIM Baroda Merchant Pay |
| 3. | Canara Bank | Yes | NA | |
| 4. | HDFC Bank | Yes | Yes | HDFC Business Ap |
| 5. | ICICI Bank | Yes | Yes | Bharat Pe and Pins Lab |
| 6. | Indusind Bank | Yes | NA | |
| 7. | Indian Bank | Yes | NA | |
| 8. | Kotak Bank | Yes | NA | |
| 9. | Punjab National Bank | Yes | Yes | PNB Merchant Pay |
| 10. | State Bank of India | Yes | Yes | YONO SBI Merchant |
| 11. | Union Bank of India | Yes | NA |
Frequently Asked Questions- FAQs
What is the e-RUPI?
e-RUPI is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS string or a QR code. This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centers without any credit or debit card, a mobile app, or internet banking. e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
Is e-RUPI a Cryptocurrency?
e-RUPI comes close to central bank digital currencies, or CBDCs. “In terms of technology. e-RUPI is different from the cryptocurrencies”. e-RUPI ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.
Who can use e-RUPI?
According to the government, e-RUPI is expected to ensure a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc. The government also said that even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.
What is e-RUPI digital payment solution?
e-RUPI is a cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS string or a QR code. This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centers without any credit or debit card, a mobile app, or internet banking. e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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