e-RUPI is a cashless and contactless instrument for digital payment solutions. It is not a currency. It is an extension of the UPI payments system. It has been developed by the National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority.
e-RUPI will work as a digital prepaid voucher, which will help banks to direct the money to beneficiaries. This makes the system not only person-specific but also purpose-specific. It will ensure the money is utilized for a particular purpose. It is a QR code or SMS string-based e-Voucher, which is delivered 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, digital payments app or internet banking access, at the service provider.
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. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary.
It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services.
The private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.
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