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Home >News >India >PM Modi launches voucher-based digital payments solution e-RUPI. How it works

Prime Minister Narendra Modi on Monday launched e-RUPI, an electronic voucher promoting digital payment solution, via video conferencing.

The platform, developed by the National Payments Corporation of India in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority, claims to be a person and purpose-specific digital payment solution.

"e-RUPI voucher will play a role in boosting digital transactions and Direct Benefit Transfer (DBT) in the country. This will help everyone in targetted, transparent and leakage-free delivery," PM Modi said at the launch event.

"e-RUPI is an example of how India is moving forward & connecting people in the 21st century with the help of advanced technology. I'm glad that it has started in the year when India is celebrating its 75th year of Independence," the prime minister added.

He also said that not only govt but if a non-govt organisation wants to support anyone in their education or medical treatment, then they can use e-RUPI instead of giving cash. "This will assure that the amount donated is being used only for the said work."

More than 300 cr transactions happened through UPI in July with over 6 lakh crore being transacted, said PM Modi, adding that government is using direct-benefit transfer to provide benefits of 300 schemes ranging from LPG to ration to pension directly to beneficiaries.

“The new digital payment mode-- e-RUPI-- is basically a prepaid voucher that can be issued directly to citizens after verifying mobile number and identity. e-RUPI voucher will be delivered in the form of a QR code or SMS string-based e-voucher to the beneficiary’s mobile number," said Bharat Panchal, CRO - APAC, Middle-east and Africa, FIS.

The beneficiary can redeem the voucher without a card, digital payments app or internet banking access, at the service provider. "This would be very useful instrument for those who are not privy to use the digital platform yet the government can extend monetary support in digital form directly to citizens in a “leak-proof manner" in the form of prepaid e-voucher powered by UPI," added Panchal.

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, a statement said earlier.

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, it said.

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, the statement said.

The PMO said 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 and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies etc.

Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes, the statement said.

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