All you Need to Know About e-RUPI, New Digital Currency

Poster elaborating e-RUPI

Prime Minister on August 2 had launched digital payment e-RUPI, a cashless and contactless instrument for digital payment. Prime Minister said “the e-RUPI voucher is going to play a huge role in making Direct Benefit Transfer (DBT) more effective in digital transactions in the country and will give a new dimension to digital governance”.

What is e-RUPI?

e-RUPI is a digital voucher that you can get on your phone via SMS or QR code. It is prepaid voucher that you can encash from any centre dealing in e-RUPI.

 It is a single use contactless, cashless voucher-based payment mode. You can use it without any app, internet banking or a card.

e-RUPI poster

It is a person specific and purpose specific digital voucher that means it can only be redeem at a particular centre by a particular person.

“For example, if the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank.  The employee will receive an SMS or a QR Code on his feature phone / smart phone.  He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone”, Ministry of Finance said in a press release.

Advantages of e-RUPI

The beneficiary does not require to have any bank account unlike other digital payment forms. It’s a “two-step redemption process that does not require sharing of personal details either”.

It can be operable with the basic phones hence you don’t need smart phones and does not require internet connection also.

Benefits to the Sponsor

“e-RUPI is expected to play a major role in strengthening Direct-Benefit Transfer and making it more transparent.  Since, there is no need for physical issuance of vouchers, it will also lead to some cost savings as well”.

Benefits to the Service Providers

“Being a prepaid voucher, e-RUPI would assure real time payments to the service provider”.

Who will issue e-RUPI?

The developer of NPCI has partnered with 11 banks for e-RUPI transactions.  They are Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India and Union Bank of India.

The acquiring Apps are Bharat Pe, BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay and YoNo SBI Merchant Pay.

How can e-RUPI be used?

“NPCI has NPCI has tied up with more than 1,600 hospitals where e-RUPI can be redeemed”.

Experts suggests that the horizon of e-RUPI will expanded in future. “Even private sector using it to deliver employee benefits and MSMEs adopting it for Business To Business (B2B) transactions”.

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