e-RUPI- All You Need to Know

On August 2, 2021 government has launched the e-RUPI app aiming for more efficient and transparent allocation of government funds. e-RUPI is a one-time payment method that could be redeemed without any credit or debit cards, digital payments or internet banking access at merchants accepting e-RUPI. This is a QR code or SMS based pre-paid digital voucher that is person specific, purpose specific and payment specific. E-RUPI is created by National Payments Corporation of India (NPCI) in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW) and partner banks.

The working of this app is designed in a way that it will eliminate the intermediaries to most extent and allow the government to reach the rural and less developed sector of the country, thus making India more digital. The beneficiary with a voucher can go to the merchant who support this system. Merchant will scan the code and an OTP will be generated offline in the mobile of beneficiary and the code will be redeemed. The moment it’s used the voucher gets expires and the merchant gets credit. Payments are done by government which has already been debited to the bank and after the successful redemption of the one-time e-voucher, the bank will add the funds to the merchant’s account making it more direct, cashless and fast payment mode.

Beneficiary need not have a bank account as well, because there is no transfer of money involved but the vouchers only. Moreover, the transactions are more reliable as amount required is already stored in the voucher. The e-RUPI app can be used in vaccination services, fertilizers and seed vouchers. Other services can also be done through this app including, but not limited to, aayushman yojana, medical bills and gas subsidies. The voucher is only applicable at the merchant which are mentioned or predetermined, thus makes it more secure as the leakage is removed.

Corporates can also use it for CSR (Corporate Social Responsibility) and it can be used very effectively because the corporate could know how much vouchers they have issued and how much of them are actually redeemed. The purpose specific, person specific and payment specific nature of e-RUPI makes it more auditable to both, the government and the corporates. May be this would require some time rural India to step out of their comfort zone and establish digitization, which is the new normal, this could be a great step of government towards making India more digital and cashless.

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Published by Vanshaj Bindlish

Writing about the stuff that I consider worth sharing with you.

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