e-RUPI: The method by which beneficiaries will receive funds via a digital payment solution

Context

e-RUPI, which was launched on August 2 by Prime Minister Narendra Modi, is an electronic voucher-based payment solution. The new financial tool aims to ensure targeted and leak-free transactions between beneficiaries and governments with the fewest possible intermediaries.

e-RUPI is a digital payment solution that is both cashless and contactless. Welfare money will be delivered to recipients via a QR code or SMS string-based e-voucher. The direct delivery of money to a beneficiary’s mobile phone is part of Digital India’s focus on good governance.

The project, which was developed by the National Payments Corporation of India on its UPI platform, was a collaborative effort that included the Ministry of Health & Family Welfare, the National Health Authority, and the Department of Financial Services.

How will e-RUPI change the way welfare money is delivered to recipients?

The r-RUPI digital payment solution’s main goal is to bridge the gap between beneficiaries and sponsors while reducing physical contact and touch points in the service delivery process. In today’s pandemic-driven world, digital delivery of welfare programmes is critical.

The e-RUPI vouchers will be paid for in advance. The money transfer will take place once the transaction is completed at the beneficiary’s end, thanks to the leak-proof technology. Beneficiaries will not require a card, a digital payment app, or access to the internet banking system.

Several banks, including State Bank of India, Punjab National Bank, Bank of Baroda, Axis Bank, ICICI Bank, and HDFC Bank, will support the scheme.

What types of programmes are expected to be delivered through e-RUPI?

The government sees e-RUPI as a game-changing step toward more transparent welfare delivery. The government stated in its statement that the voucher-based solution can be used to deliver medicine, diagnostics, and nutritional support under Mother and Child welfare schemes, TB eradication programmes, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies, and other programmes.

Will e-RUPI be restricted to government-sponsored welfare programmes?

No. While the government will work to incorporate e-RUPI voucher-based digital payment solutions into its programmes to provide services to beneficiaries, it has also made the platform available to the private sector.

The government has invited private companies to use the digital e-RUPI vouchers for their employee welfare programmes and schemes as part of their corporate social responsibility (CSR) efforts.

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