In the era of digital currency, Prime Minister Narendra Modi on Monday launched a new innovative digital payment solution platform named e-RUPI. The platform was developed by the National Payments Corporation of India (NPCI) in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and partner banks. It’s a person oriented or purpose-specific payment system. According to the government this new payment mode is to ensure direct monetary support by the government to its beneficiaries/citizens without any leaks or mishaps.

What is e-RUPI and how does it work?

It is in the form of a prepaid e-voucher powered by UPI issued directly to the recipient after a two step verification (identity and mobile number), which is target sensitive and can be only be used to make payment for generated intent. When availing this services you would receive a QR code or SMS string-based e-voucher on your registered mobile number that can be used by you only once. Imagine, it as a coupon that can be redeemed only for a specific item and you can’t cash it for money/other purposes. For example e-RUPI voucher issued to pay money for any health service can only be used for that purpose alone.

Advantage of this e-voucher:

The user can benefit from this e-payment method even if they don’t have a card, digital payments app or internet banking access. This payment process and transaction is completely digital, contactless and cashless.

Services that fall under this digital payment platform are drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drug and diagnostics, fertilizer subsidies and so on.

The private sector can as well avail these services as part of their employee welfare and corporate social responsibility program, to cover for travel, food and healthcare etc.

At present there are eleven banks in affiliation with e-RUPI, however Canara Bank, Indusind Bank, Indian Bank, Kotak Bank, Union Bank of India can only issue and not accept the said vouchers. But Axis, Bank of Baroda, HDFC, ICICI, Punjab National, SBI banks can do both accept as well as issue the vouchers.