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e-RUPI: New Initiative by Government of India

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What is e-RUPI?

Prime Minister Shri Narendra Modi announced the launch of e-RUPI, a cashless and contactless digital payment system, on August 2nd. The eRUPI voucher, according to the Prime Minister, will play a significant role in making Direct Benefit Transfer (DBT) more effective in digital transactions in the country and will provide the digital government a new dimension. He described e-RUPI as a symbol of India’s success in terms of integrating technology into people’s lives.

e-RUPI is a digital voucher that a beneficiary receives in the form of an SMS or QR code on his phone. It’s a pre-paid voucher that he or she can use at any location that accepts it.

For example, if the government wants to cover a specific treatment for an employee at a specific hospital, it can use a partner bank to issue an e-RUPI voucher for the required amount. On his feature phone or smartphone, the employee will receive an SMS or a QR Code. He or she can go to the designated hospital, use the services, and pay using the e-RUPI voucher that was sent to his phone.

As a result, e-RUPI is a one-time contactless, cashless voucher-based mode of payment that enables users to redeem vouchers without the usage of a card, digital payments app, or internet banking.

Its development

The National Payments Corporation of India (NPCI), which manages India’s digital payments ecosystem, has unveiled e-RUPI, a voucher-based payment system designed to encourage cashless transactions.

The National Health Authority, the Department of Financial Services, and the Ministry of Health and Family Welfare collaborated on the project.

What is its advantage?

e-RUPI does not require the beneficiary to have a bank account, which is a significant advantage over other digital payment methods. It offers a simple, contactless two-step redemption process that does not necessitate the disclosure of personal information.

Another advantage is that e-RUPI can be used on basic phones as well as smartphones, allowing it to be utilized by people who do not own smartphones or in locations where there is no access to the internet.

e-RUPI is projected to play a key role in enhancing and increasing transparency in Direct-Benefit Transfer. There would be some cost savings since there will be no need for the actual issue of vouchers. e-RUPI would ensure real-time payments to the service provider because it is a prepaid voucher.

Issuing banks

For e-RUPI transactions, NPCI has partnered with 11 banks:

 Axis Bank

 Bank of Baroda

 Canara Bank

 HDFC Bank


 Indian Bank

 IndusInd Bank

 Kotak Mahindra Bank

 Punjab National Bank

 State Bank of India

 Union Bank of India

Bharat Pe, BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay, and YoNo SBI Merchant Pay are the acquiring apps.

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