What Is e-RUPI, How Does It Work? Know all about the cashless digital payment solution
Prime Minister Narendra Modi launched the digital payment solution on 2 August, 2021 at 4:30 p.m. in the evening via video conferencing. The government expects e-RUPI to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. Here’s what we know so far about it. The digital payment system has been developed by the National Payments Corporation of India (NPCI) in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.
What is e-RUPI
e-RUPI is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider. It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.
e-RUPI connects 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.
How to use e-RUPI vouchers
These vouchers are like e-gift cards, which are prepaid in nature. The code of the cards can be shared either via SMS or the OR code can be shared. These e-vouchers will be person and purpose-specific. For example, if you have an e-RUPI voucher for Covid-19 vaccine, then it has to be redeemed for vaccines only.
How is an e-RUPI voucher different from other online payment applications?
E-RUPI is not any platform. It is a voucher meant for specific services. E-RUPI vouchers are purpose-specific and even if one does not have a bank account or a digital payment app or a smartphone can benefit from these vouchers. That is the difference.
How to redeem
No card or hard copy of the voucher is needed for redeeming these. The QR code received via message is enough.
List of banks that are live with e-RUPI
According to National Health Authority, eight banks are already live with e-RUPI, including State Bank of India, HDFC, Axis, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank, ICICI Bank.
How does e-RUPI works?
The release further also highlights how the instrument functions. e-RUPI connects 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.
Where can you use e-RUPI?
As a part of the Indian Government’s Digital India venture, this digital payment solution will be very helpful in the direction of ensuring 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. Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.
