Prime Minister Narendra Modi to dedicate the platform to the nation at 4.30 pm

New Delhi: Prime Minister Narendra Modi will launch a digital payment platform called e-RUPI via video-conferencing at 4.30 pm today. The platform, developed by the National Payments Corporation of India (NPCI) in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority, claims to be a person and purpose-specific digital payment solution.

The PMO said it is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. “Digital technology is transforming lives in a major way and is furthering ‘Ease of Living.’ At 4.30 pm tomorrow, 2nd August, will launch e-RUPI, a futuristic digital payment solution that offers several benefits for its users,” PM Modi had tweeted yesterday.

What is e-RUPI? 

How does it work?

e-RUPI is a cashless and contactless instrument for digital payment. It is a “QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries.

This will act as a prepaid voucher that can be redeemed as payment to a service provider, eliminating the need for a card, digital payments app or internet banking access. It will connect “sponsors of service providers with beneficiaries and service providers” digitally. 

It assures “timely payments” without the involvement of any intermediary. As per the official statement, “it also ensures that the payment to the service provider is made only after the transaction is completed.” Users can redeem the voucher by scanning a QR Code received via SMS.

Where can one use e-RUPI?

As per the official statement, the digital payment service can be used to ensure “a leak-proof delivery of welfare services”. It can also be used to deliver services under schemes meant for providing drugs and nutritional support under Mother and Child Welfare Schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies and so on.

As for private sector, the Government suggested the sector can leverage these digital vouchers as a part of its “employee welfare and corporate social responsibility programmes.”

How is e-RUPI different from other digital payment apps?

The chief difference between e-RUPI and other online payment apps is that e-RUPI is not a platform or an app. It is a voucher that can be redeemed for specific services only. Unlike other payment services, the user does not need to have a digital payment app or even a bank account to redeem this voucher.

What are the benefits of using e-RUPI?

It is beneficial for corporates as it is an end-to-end digital transaction that doesn’t require any physical issuance. Therefore, it will lead to cost reduction for the organisation. Additionally, the issuer will be able to track voucher redemption.

e-RUPI will be beneficial for users as it is “easy and secure”. Since it has a pre-blocked amount, chances of a transaction being declined will be significantly lowered.  As per NPCI, it has a two-step redemption process and the user does not need to share any personal details while redeeming the voucher. Notably, consumers do not need to have a digital payment app to redeem the voucher.

Which banks are live with e-RUPI?

As per NPCI, State Bank of India, HDFC, Axis, Punjab National Bank, Bank of Baroda, Canara Bank, IndusInd Bank and ICICI Bank are already live with the e-RUPI digital payment solution.