Prime Minister Narendra Modi launched e-RUPI, a “person and purpose-specific” digital payment solution that is aimed at improving transparency and targeted delivery of benefits.

e-RUPI should not be confused with digital currency which the Reserve Bank of India is contemplating. Instead e-RUPI is a person-specific, even purpose-specific digital voucher.

Features of e-RUPI:

• 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.

• 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.

• 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 merchants accepting e-RUPI. 

• e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organisations or government via SMS or QR code.

• For example, if the government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank. The employee will receive an SMS or a QR Code on his phone. He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone.

• The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher.

• e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

• Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary. It also ensures that the payment to the service provider is made only after the transaction is completed.

• To begin with, e-RUPI facility is available for health services and will be expanded to other segments.

• It can also be used for delivering services under schemes meant for providing drugs and nutritional support, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.

National Payments Corporation of India

• National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India. 

• It was founded in 2008. 

• Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” company, with an intention to provide infrastructure to the entire banking system in India for physical as well as electronic payment and settlement systems. 

• The company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.

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