e-RUPI: New Digital Payment Solution

Context

Prime Minister Shri Narendra Modi will launch e-RUPI, a person and purpose-specific digital payment solution, via video conferencing on August 2, 2021 at 4:30 p.m.

The Prime Minister has always been a strong supporter of digital initiatives. Several programmes have been launched over the years to ensure that benefits are delivered to their intended beneficiaries in a targeted and leak-proof manner, with few points of contact between the government and the recipient. This vision of Good Governance is furthered by the concept of electronic voucher.

What is e-RUPI?

e-RUPI is a cashless and contactless digital payment system. It is a QR code or SMS string-based e-Voucher that is sent to the beneficiaries’ mobile phones. Users of this seamless one-time payment mechanism will be able to redeem the voucher at the service provider without the use of a card, digital payments app, or internet banking access. It was created in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority on the National Payments Corporation of India’s UPI platform.

e-RUPI establishes a digital link between service sponsors and beneficiaries and service providers, eliminating the need for a physical interface. It also ensures that the service provider is only paid after the transaction has been completed. Because it is pre-paid, it ensures prompt payment to the service provider without the need for an intermediary.

It is expected to be a game-changing initiative aimed at ensuring the delivery of leak-proof welfare services. It can also be used to deliver services under schemes such as the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which provides drugs and nutritional support to mothers and children, TB eradication programmes, drugs and diagnostics under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies, and so on. These digital vouchers can be used by the private sector as part of employee welfare and corporate social responsibility programmes.

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