e-RUPI Digital Payment Solution Launched: How It Works

Prime Minister Narendra Modi on Monday launched e-RUPI. It is an electronic voucher promoting digital payment solutions. According to PMO, it will be a cashless and contactless instrument for digital payment. In addition, it is a development with the National Payments Corporation of India in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority. Moreover, it is a person-specific and purpose-specific payment system. This will ensure that the benefits reach their intended beneficiaries in a targeted and leak-proof manner via e-RUPI.

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“e-RUPI is a QR code or SMS string-base e-Voucher, which is goes 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. Additionally, the digital payments app or Internet banking access, at the service provider”.

the official statement said.

How does e-RUPI work?

According to the PMO, it is a cashless and contactless instrument for digital payment. The statement adds that it is a QR code or SMS string-base e-voucher. It will deliver to the mobile phones of beneficiaries. Additionally, it connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. e-RUPI also ensures that the payment to the service provider happens only after the transaction is done.

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Furthermore, e-RUPI prepaid in nature assures timely payment to the service provider without the involvement of any intermediary. This one-time payment mechanism will allow users to redeem the voucher without a card. As mentioned above even without digital payments app or internet banking access, at the service provider.

Moreover, the statement also says that e-RUPI is expected to be a revolutionary initiative. Especially for 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. Examples like Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana besides fertilizer subsidies.

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Who will be issuing these e-RUPI vouchers?

Many banks have onboarded for issuing e-RUPI vouchers. Corporate and government agencies will have to approach partner banks — both private and public-sector lenders. They will have to go with the details of beneficiaries and the purpose of the payment. As of now, there are a total of 11 public and private sector banks that will support this new payment mode.

Additionally, State Bank of India (SBI), ICICI Bank, HDFC Bank, Punjab National Bank (PNB), Axis Bank and Bank of Baroda will provide both issuance and redemption facilities for e-RUPI coupons.

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Meanwhile, Canara Bank, IndusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India will only issue e-RUPI coupons for now.