Prime Minister Narendra Modi launched e-RUPI, an electronic voucher promoting digital payment solutions, through video conferencing on August 2, 2021.
e-RUPI has been developed by the National Payments Corporation of India on its UPI platform. It has been developed in collaboration with the Department of Financial Services under the Union Ministry of Health & Family Welfare and the National Health Authority.
The electronic voucher will also benefit the private sector, as they can use them as a part of their employee welfare and corporate social responsibility programs.
What is e-RUPI?
e-RUPI is a prepaid, cashless, and contactless instrument for digital payment. It is a QR code or SMS string-based e-Voucher, which can be sent on the mobile of the beneficiaries. It is a seamless one-time payment mechanism.
Where can one use e-RUPI?
As per the official statement, the digital payment service can be used to ensure “a leak-proof delivery of welfare services”. It can also be used to deliver 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, and so on.
As for the private sector, the government suggested the sector can leverage these digital vouchers as a part of its “employee welfare and corporate social responsibility programs”.
Benefits of e-RUPI
The users of e-RUPI can redeem the electronic voucher without using a card, internet banking or digital payments app at the service provider.
e-RUPI will connect sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
The voucher will ensure that the payment is made to the service provider only after the transaction is completed.
Being pre-paid, it assures timely payment to the service provided without the requirement of any intermediary.
e-RUPI is expected to be a revolutionary initiative as it will ensure leak-proof delivery of welfare services.
It will also be useful for delivering services under schemes meant for providing drugs and nutritional support under various Mother and Child welfare schemes and TB eradication programs and drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana.
How is e-RUPI different from other digital payment apps?
The chief difference between e-RUPI and other online payment apps is that e-RUPI is not a platform or an app. It is a voucher that can be redeemed for specific services only. Unlike other payment services, the user does not need to have a digital payment app or even a bank account to redeem this voucher.
Which banks are live with e-RUPI?
As per NPCI, State Bank of India, HDFC, Axis, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank and ICICI Bank are already live with the e-RUPI digital payment solution.