e-RUPI

Introduction

• e-RUPI is a cashless and contactless digital payment system developed with the support of DFS (Department of Financial Services) and NHA (National Health Authority) and is powered by National Payments Corporation of India (NPCI).
• Unlike virtual currencies, e-RUPI is backed by the Rupee and can be used only for specific purposes. 
• It will function similarly to a prepaid voucher that can be used at particular locations. The National Payments Corporation of India built the technology, which will allow banks to issue vouchers through the platform.

Features of e-Rupi

• This seamless one-time payment mechanism enables users to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting UPI e-Prepaid Vouchers. 

• The e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations via SMS or QR code.

• This contactless e-RUPI is easy, safe and secure as it keeps the details of the beneficiaries completely confidential.

• The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher.

Working of e-RUPI

• The beneficiary of the service will receive the QR code or the SMS string on his/her phone. 
• The person should show this code or string at the service provider (like a hospital or PHC) where it will be scanned by the merchant. Then, a verification code will be sent to the beneficiary’s phone which would have to be shared with the merchant, and the payment would be successful.

Important Points

• e-RUPI is not a digital currency. 
• It is a social service voucher system to ensure benefits reach the intended eligible beneficiaries without any discrepancies and delays.
•  However, it can be seen as a first step towards having a digital currency in that the experience can help the government learn more about the digital payments architecture, and the loopholes in the system.

Potential Applications of e-RUPI

• It can provide a leakage proof mechanism for the delivery of welfare services. 
• It can be used to provide medical and health-related services such as Ayushman Bharat, TB eradication programs, etc. 
• The private sector can also leverage it for its CSR programs and employee welfare programs.