e-RUPI- A New Futuristic Payment System for a Digital India

byPriyanka JuyalLast Updated: August 17, 2022

“e-RUPI is a symbol of how India is progressing by connecting people’s lives with technology.”

Key highlights

  • Prime Minister, Narender Modi launched e-RUPI on 2nd August 2021 via video conferencing
  • National Payments Corporation of India in association with several partners developed e-RUPI
  • e-RUPI is a digital voucher and can be redeemed to avail of government services
  • The payment system is provided to the users in the form of SMS, QR code and/or digital voucher
  • The digital contactless payment system does not require internet connectivity

Prime Minister Narender Modi, on 2nd August 2021 launched e-RUPI, a digital payment system via video conferencing. The digital payment system was developed by the National Payments Corporation of India in association with the Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW) and partner banks.

e-RUPI is a cashless and contactless means of making digital payments without internet connectivity. It is a QR code or SMS based e-voucher which is provided to the beneficiary to complete transactions effortlessly. As the voucher is either provided to the beneficiary in the form of a QR code or is offered as an SMS string-based e-voucher to the mobile phones, it eliminates any misuse of the voucher. The voucher can be redeemed later without the need to use a card, digital payment apps like Paytm or net banking.

“In the beginning, it will be applicable on health beneficiaries. People who want to take vaccines from private centres, by paying… if someone wants to help around 100 poor people with the vaccination, they can give e-RUPI voucher to them so the money is used only for that purpose.”- Quoted by Prime Minister, Narender Modi

A statement by the government also highlighted that e-RUPI is built on NPCI’s UPI system. Its system will ensure leak-proof delivery of government welfare services. Though it is initially deployed alongside the National Digital Health Mission to support the covid-19 vaccination drive, it can be also used to deliver service which comes under the drugs and nutritional support schemes.

A detailed analysis of e-RUPI

e-RUPI aims to stop any kind of leakages in government welfare schemes while ensuring that the benefits reach the deserving person. Listed below is what e-RUPI, a futuristic digital payment solution offers-

  • The service provider payments can only be made after the completion of the transaction
  • Only the person to whom the voucher is issued can use it
  • It is a one-time payment mechanism that allows a user to redeem the voucher without the need to use bank cards, digital payments apps or net banking
  • e-RUPI payment system is prepaid in nature and does not require any kind of intermediary for the completion of the transaction
  • e-RUPI can be used to deliver services under schemes meant for providing ‘drugs and nutritional support under the mother and child welfare schemes, TB eradication programmers, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.
  • As e-RUPI is a contactless payment system, it is easy, safe and secure to use
  • It keeps the beneficiary’s details completely confidential
  • The transaction that takes place through the voucher is relatively faster and at the same time reliable, as the amount for the transaction is already stored in the voucher

What’s more about e-RUPI?

The e-RUPI voucher can be redeemed for the given purpose only and cannot be used to make transactions for other purposes.

In another statement, the Prime Minister quoted- “If the money is sent by the government for books, then e-RUPI will ensure that only the books are purchased. If money has been sent for the uniform, then it should be spent in its use, if money has been sent for fertilizer, then it should be spent in it.”

Further, Prime Minister Narender Modi also tweeted some of the advantages of e-RUPI like connecting service sponsors and beneficiaries digitally-

Even the private sectors can leverage e-RUPI functionalities for the welfare of their employees and corporate social responsibility programmes.

Benefits of e-RUPI- a New face to Digital Governance in India

Corporates, consumers and hospitals can take leverage of e-RUPI in the following manner-

For Corporates

  • Using e-RUPI digital payment system, corporates can enable the well-being for their employees
  • It is easy to track the voucher redemption by the issuer
  • e-RUPI does not require physical issuance which results in cost reduction
  • The voucher distribution is quick, safe and contactless

For Consumers

  • A consumer does not require to carry the printout of the voucher
  • Redeeming the voucher is a two-step process
  • For redeeming the voucher, a beneficiary does not require to share his/her personal information
  • Beneficiaries are not required to have a bank account or use digital payment applications to use the voucher

For Hospitals

  • All the vouchers are authorized via a verification code
  • The voucher can be redeemed by following a few easy steps
  • There won’t arise a transaction decline situation as the voucher will be pre-blocked with the amount
  • Cash or cards are not required to complete the transactions

The next statement by Prime Minister Narender Modi concludes how e-RUPI can be beneficial to avail DBT benefits effortlessly – “e-RUPI vouchers are purpose-specific. It will ensure that the benefits of the voucher are availed for the service it is meant for. e-RUPI voucher is going to play a huge role in making DBT more effective in digital transactions in the country. This will help everyone in Targeted, Transparent and Leakage Free Delivery.”

How to redeem an e-RUPI voucher?

The process to redeem an e-RUPI voucher is simple and does not require one to share his/her personal details, banking details and more with the service provider. All he/she has to do is to follow the given process-

  • The beneficiary needs to show an e-RUPI SMS or QR code at the service outlet
  • A salesperson will scan the QR code or verify the SMS
  • An OTP will be sent to the beneficiary which needs to be shared with the salesperson
  • Upon submitting the OTP, the payment will be done

When was the e-RUPI payment system launched?
e-RUPI payment system was launched on 2nd August 2021.
Who launched the e-RUPI payment system?
Prime Minister Narender Modi launched the e-RUPI payment system via video conferencing.
Who has developed e-RUPI?
e-RUPI was developed by the National Payments Corporation of India in association with the National Health Authority (NHA), Department of Financial Services (DFS), Ministry of Health and Family Welfare (MoHFW) and other partner banks.

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