Published on: August 6, 2021



What : Electronic voucher based digital payment system

Developed by : National Payments Corporation of India (NPCI)

What is in news : Was launched by PM recently

How does it work :

  • Connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface
  • Cashless and contactless digital payments medium, which will be delivered to mobile phones of beneficiaries in form of an SMS-string or a QR code
  • Essentially be like a prepaid gift-voucher that will be redeemable at specific accepting center’s without any credit or debit card, a mobile app or internet banking
  • How will these vouchers be issued: NPCI on its UPI platform has onboarded banks that will be the issuing entities

Process :

  • Any corporate or government agency will have to approach the partner banks, which are both private and public-sector lenders, with the details of specific persons and the purpose for which payments have to be made.
  • The beneficiaries will be identified using their mobile number and a voucher allocated by a bank to the service provider in the name of a given person would only be delivered to that person.

Significance of e-RUPI

  • Leak-proof delivery of welfare services
  • Can also be used for delivering services under schemes meant for providing drugs and nutritional support
  • Private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes
  • Potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital currency.