e-RUPI Digital Payment Benefits & Working

image showing e Rupi, India's digital rupee

The digital India vision of the government is shaping the country and the world rapidly with dramatic changes and milestones being achieved on a daily basis. It was once perceived not many years ago that the digital payments revolution in the country was decades away and then came UPI and changed the scenario entirely. The government on the backdrop of the success of UPI has now launched e-RUPI to ensure that citizens get maximum direct benefits. Given here is the meaning of e-RUPI and its related details.

Table of Contents hide

1 What is e-RUPI Digital payment system and how does it work?

2 Which are the banks live with e-RUPI?

3 What are the services covered under e-RUPI?

4 What are the benefits of the e-RUPI digital payment solution?

5 Volume of transactions carried out through the e-Rupi initiative

6 Conclusion

7 FAQs

8 Also read..

What is e-RUPI Digital payment system and how does it work?

e-RUPI is a digital payment system launched by the Government of India in August 2021. It is a cashless and contactless payment method that aims to promote financial inclusion as well as reduce leakages which have been one of the biggest issues faced by the government welfare schemes.

Unlike other digital payment systems that require a bank account or a payment app, e-RUPI is a QR code or SMS-based payment mechanism. It is linked to a specific purpose or service and is designed to be easy to use. This system is accessible to all citizens regardless of their financial or technological literacy.

Users can select the service that they want to make payment for and get the benefit of a government welfare scheme. Users get access to a voucher that is in the nature of a prepaid card and is sent to the beneficiary’s mobile number as an SMS or QR code. The beneficiary can directly redeem the benefit under the e-RUPI voucher by submitting the same to the designated service provider or the merchant by scanning the QR code or entering the code number available. The entire transaction is cashless and contactless and beneficiaries do not need to have a bank account or payment app.

Which are the banks live with e-RUPI?

There are a total of 21 banks that are live with the e-RUPI initiative. Some of those banks is mentioned below.

Union Bank Of India
State Bank Of India
Punjab National Bank
Kotak Mahindra Bank
Indian Bank
IndusInd Bank
ICICI Bank
HDFC Bank
Canara Bank
Bank of Baroda
Axis Bank
Federal Bank
Karur Vysya Bank

What are the services covered under e-RUPI?

The benefit of e-RUPI is being extended to many services across the country and across various sectors. The Government of India has partnered with several public and private sector entities to offer e-RUPI services in the following areas:

Healthcare

Users can use the e-RUPI vouchers to make cashless and contactless payments for medical and healthcare services such as diagnostics, vaccinations, and medicines. This makes it easy for the users to avail maximum benefit of the government welfare schemes in the healthcare sector.

Welfare schemes

India has many welfare schemes in the country for the benefit of its masses. These welfare schemes form a huge chunk of the budget every year. There have been consistently many cases of funds not reaching the intended beneficiaries. The e-RUPI launched by the government can be used for making payments under government welfare schemes such as Pradhan Mantri Jan Arogya Yojana (PM-JAY), Ayushman Bharat, and Mid-Day Meal Scheme ensuring that beneficiaries get the timely aid from the intended welfare schemes.

Education

e-RUPI can also be used for essential routine tasks like making fee payments for school and college education. This card can also be used for paying for vocational training and skill development programs.

Agriculture

India is still majorly an agricultural country and small farmers often find it difficult to access government-aided essentials like fertilisers, seeds, crop insurance, and more. e-RUPI helps in making payments for such agriculture-related services with ease and without the hassles of bank accounts, etc.

Travel and tourism

e-RUPI is being nurtured to be a round-about payment model for most services. e-RUPI can be used for making payments for travel and tourism-related services such as air and rail tickets, hotel bookings, and adventure activities.

Corporate Incentives

The uses of e-RUPI are not limited to government-aided facilities or welfare schemes. It can also be used by corporates as a means to provide incentives to their employees or customers, such as gift cards or discounts, vouchers, etc.

What are the benefits of the e-RUPI digital payment solution?

A few benefits of e-RUPI for the public in general and the government are mentioned hereunder.

e-RUPI is a voucher-based payment system that ensures that the payment is made only for the intended purpose.
This reduces the risk of fraud and leakage of benefits from government welfare schemes and enrings they reach the right beneficiary
e-RUPI is a contactless and cashless payment system that eliminates the need for physical currency or cards thereby reducing the risk of any infection being transmitted.
This facility is easy and convenient to use and can be used by citizens even in the remotest parts of the country who may not necessarily be tech-savvy.
One of the biggest benefits is that the users are not required to have any bank accounts or a payment app ensuring the maximum reach of the facility.
The transactions on e-RUPI are transparent as well as traceable making it quite secure along with the ability to track the flow of funds.
e-RUPI is a fast and efficient payment system that reduces transaction costs and processing time making it cost-effective
e-RUPI is a part of the government’s digital India initiative and promotes the adoption of digital payment solutions in the country.

Volume of transactions carried out through the e-Rupi initiative

According to NCPI, From a 3470 transactions in September 2022 to 48790 vouchers created through the e-Rupi initiative, there is a huge amount of progress shown.

Conclusion

e-RUPI is one of the many initiatives of the Central Government that is aimed at providing financial benefits to every deserving citizen of the country at the same time ensuring that there is no leakage in the process. This type of technology-based initiative to provide direct benefits to the beneficiaries was not perceived to be easy just a decade back, but backed by the unprecedented increase of digital inclusion in the country, e-RUPI will solve major loopholes in the financial structure of the country, especially in rural and semi-urban areas.

FAQs

1. When was the e-RUPI launched?

e-RUPI was launched on 2nd August 2021 by Prime Minister Mr. Narendra Modi.

2. How does e-RUPI work?

e-RUPI is in the nature of a digital voucher that can be used by providing the unique QR code or the code number attached to it or in the form of an SMS.

3. Is e-RUPI like UPI?

e-RUPI differs from UPI in many ways as the former does not need a require unique UPI id that is linked to the bank account or a payments app on the registered mobile number to function.

4. Is the data on e-RUPI secure?

e-RUPI is a secure mode adopted by the government using the latest technology which ensures the data encryption of the highest level thereby ensuring the data pricy of their beneficiaries.