PM Modi to Launch e-RUPI Today; Find Details

Prime Minister Modi is set to launch a new e-RUPI via video-conferencing later today. The aim of the new payments instrument is to enable an improved extension of monetary support in a 'leak-proof manner' to beneficiaries of various government schemes.

As per the government's notification, India's entire public payments ecosystem has been roped in to develop the platform, including the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority.

What is e-RUPI?

e-RUPI is a cashless and contactless digital payments instrument that will be sent to mobile devices of beneficiaries either as an SMS string-based e-voucher or a QR code. It functions as a Sodexo coupon that can be used to avail of specific services without any documentation or verification.

The SMS voucher or the QR code will have a pre-allotted sum related to it and can only be used once by a person on whose name it has been issued. The voucher can be used without a card, without installing a digital payments app, and even without a bank account.

As a huge part of the Indian population do not have bank accounts or is restricted to internet access, e-RUPI represents a seamless and convenient method by which beneficiaries can cash in government services. Notably, the payment can only be processed after the relevant service has been availed of by the beneficiary.

How will e-RUPI work?

e-RUPI is a cashless and contactless digital payments medium that will be delivered to mobile phones of beneficiaries in form of an SMS string or a QR code. This will be like a prepaid gift voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking. e-RUPI will connect the services sponsors with the beneficiaries and service providers in a digital manner.

How will these vouchers be issued?

The NPCI has built the system on its UPI platform and has onboarded banks that will be the issuing entities. Any corporate or government agency needs to approach the partner banks, both private and public-sector lenders, with the details of people and the purpose for which payments are to be made. The beneficiaries will be identified using a mobile number and a voucher allocated by a bank to the service provider in the name of a given person would only be delivered to that particular person.

At present, there are eleven banks supporting the e-RUPI. Big banks like State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank and some others are fully supporting e-RUPI i.e they are both, issuing e-RUPI vouchers as well as cashing them.