Meet e-RUPI: PM Modi announces cashless and contactless digital payment instrument

"e-RUPI will bring a digital revolution in the country," announced PM Modi. He stated that he is happy the digital payments revolution comes on India's 75th independence year. The cashless e-voucher payment system will revolutionize the digital payment segment, he said. The government further aims that the benefits reach its intended beneficiaries in a targeted and leak-proof manner, with limited touchpoints between the government and the beneficiary.

The new digital payment mode - e-RUPI - is a prepaid voucher. The government can directly issue the voucher to its citizens after verifying mobile numbers and identities. Thus, instead of putting cash in someone's bank account, a prepaid e-RUPI voucher will come in a QR code or SMS string-based e-voucher, directly to the beneficiary's mobile number.

Bharat Panchal, CRO - APAC, Middle-east and Africa, FIS, said, “The new digital payment mode e-RUPI would be a very useful instrument for those who are not privy to use to 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 a prepaid e-voucher powered by UPI. However, some stronger controls may be required to monitor any possible frauds. If the real beneficiary starts encashing such vouchers instead of cash then it would be difficult to trace such pre-paid instruments once they start to move from one hand to other. Therefore, it would be very effective to match the beneficiary’s details at the time of redemption to make sure that the real beneficiary only is using it and not someone else.”

Bharat Panchal has served as the Chief of Risk Management for NPCI for more than 8 years.

What is e-RUPI?

e-RUPI is a cashless and contactless instrument for digital payment. The users of this seamless one-time payment mechanism can redeem the voucher; without a card, digital payments app, or internet banking access, at the service provider. An NCPI product, e-RUPI connects the sponsors of the services with the beneficiaries. It also digitally connects service providers without any physical interface. It also ensures that the payment to the service provider goes only after a complete transaction. Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.

The revolutionary initiative aims to provide a leak-proof delivery of welfare services. It can also help to deliver services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc. Further, the private sector can leverage these digital vouchers as part of its employee welfare and corporate social responsibility programs.

An e-RUPI voucher will play a major role in strengthening the DBT scheme, says PM Modi.