Prime Minister Narendra Modi to Launch Digital Payment Solution e-RUPI

e-RUPI, India’s very own person and purpose-specific digital payment solution, will be launched by Prime Minister Narendra Modi through video conferencing on 2 August 2021 at 4:30 pm. A statement from the Government of India says that the concept of electronic vouchers takes forward the vision of good governance and that the prime minister has always championed digital initiatives.

e-RuPI has been developed by the National Payments Corporation of India (NPCI) on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority. NPCI, which is an initiative of the Reserve Bank of India (RBI) and Indian Banks' Association (IBA), enables digital payments and settlement systems in India.

How e-RUPI Works

e-RUPI is a cashless and contactless instrument for digital payment. It is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries. The users of this 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 the involvement of any intermediary.

It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs ∧ diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, and fertilizer subsidies among others. Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.