Prime Minister Narendra Modi launched e-RUPI, an electronic voucher-based digital payment solution, via video conferencing on Monday
“Today, the country is giving a new dimension to digital governance. e-RUPI will play a great role in strengthening DBT,” PM Modi said while launching the digital payment solution.
“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,” he added.
e-RUPI is a person-specific and purpose-specific payment system that will ensure that the benefits reach its intended beneficiaries in a targeted and leak-proof manner.
The e-RUPI platform has been developed by the National Payment Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Welfare and the National Health Authority.
How this Works?
A statement released by the Prime Minister’s Office (PMO) said e-RUPI is a cashless and contactless instrument for digital payment. The statement added that it is a QR code or SMS string-based e-voucher, which is delivered to the mobile phones of beneficiaries.
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.
Since it is prepaid in nature, it assures timely payment to the service provider without the involvement of any intermediary.
The one-time payment mechanism of e-RUPI will allow users to redeem the voucher without a card, digital payments app or internet banking access, at the service provider.
It may be noted that the digital payment solution has been built by NPCI on its UPI platform.
Many banks have been onboarded for issuing e-RUPI vouchers. Corporate and government agencies will have to approach partner banks — both private and public-sector lenders — 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.
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. Meanwhile, Canara Bank, IndusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India will only issue e-RUPI coupons for now.