Last updated: October 6th, 2022 5:06 PM

e-RUPI Digital Payment

Recently, on 2^nd August 2021, the Prime Minister of India launched a new digital payment platform named ‘e-RUPI’. e-RUPI is basically a pre-paid voucher that a beneficiary gets in the form of an SMS or QR code to avail the same for specified services. In coming times, it is more likely that e-RUPI will also be used for government schemes like Pradhan Mantri Jan Arogya Yojana, Ayushman Bharat, various subsidies offered by the government etc. The current article covers the features; purpose; working system and benefits of e-RUPI. Further, the article also lists down the e-RUPI issuing banks.

Features of e-RUPI-

Important features of the e-RUPI digital platform are listed hereunder-

1. It is developed by the National Payment Corporation of India (NPCI) on its UPI platform. However, the Ministry of Health and Family Welfare, the National Health Authority and the Department of Financial Services are the collaborating partners.
2. Through this platform, the sponsor of the services will be linked with the service providers and the beneficiaries. Notably, the payment to the service provider will be done after the completion of the respective transaction.
3. An e-RUPI digital platform is prepaid in nature. Further, it is cashless and contactless.

Purpose behind introducing e-RUPI-

Some of the basic aims behind the introduction of e-RUPI are highlighted hereunder-

1. To provide a contactless and cashless payment system.
2. To enable users to make payment via a secure payment system.
3. To ensure timely payment of services without the involvement of any intermediary.
4. To develop a simple payment process using QR code or SMS. Wherein, it doesn’t require the user to carry the card or have a digital payment app or have access to internet banking.

Working system of e-RUPI-

The simplified working system of e-RUPI is summarized hereunder-

• Firstly, the issuer issues an e-RUPI voucher to the beneficiary. Correspondingly, the respective money of the issuer will be blocked by the bank.
• The beneficiary will receive the voucher via an SMS or a QR code.
• In order to avail the specified benefits, the beneficiary will show the e-RUPI voucher received by it in SMS or QR code to the service provider.
• The service provider will scan the e-RUPI voucher and after validation provides the specified service to the beneficiary.
• Post completion of the transaction, the blocked money of the issuer will be transferred to the service provider.

Benefits of e-RUPI-

The advantages/ benefits of e-RUPI are-

• It is a cashless as well as a contactless instrument for digital payment.
• The beneficiary receives the voucher in SMS or QR code form. Hence, the beneficiary doesn’t require a bank account or internet or internet banking etc.
• The benefit can be availed by the specific person and for the pre-defined specific purpose only. Accordingly, it strengthens ‘Direct-Benefit Transfer’ and also makes the transactions more translucent.
• e-RUPI is operable on any type of basic phone. The beneficiary doesn’t need to have any smart phone or even internet.
• Due to its specific features, it ensures a leak-proof delivery of any welfare services.

List of e-RUPI issuing banks-

Following banks partners e-RUPI transactions-

1. State Bank of India,
2. Axis Bank,
3. Canara Bank,
4. Bank of Baroda,
5. ICICI Bank,
6. HDFC Bank,
7. Kotak Mahindra Bank,
8. Indian Bank,
9. Union Bank of India,
10. IndusInd Bank, and
11. Punjab National Bank.