What is it and how it works?

The new digital payment instrument. A beneficiary gets an e-RUPI voucher in the form of an SMS or QR code on his phone. It is a pre-paid voucher, which can be redeemed at any facility that accepts it. It is a one-time cashless, contactless payment method that utilizes vouchers to allow users to redeem vouchers without a card, a digital wallet, or access to online banking. All beneficiary details are kept confidential, and it is contactless, easy, secure, and safe. As the voucher contains the required amount, the transaction is relatively faster and more reliable.

What is it and how it works?

Governments can issue e-RUPI vouchers for the determined amount and pay for a particular treatment of an employee in a selected hospital through their partner banks. They will send an SMS or a QR code to the employee on his feature phone/smartphone to provide access. He/she can use the voucher emailed to his/her phone to pay the hospital and receive services.

Don’t get confused with digital currency, which is what the Reserve Bank of India is considering. Rather, it is a person-specific and purpose-specific digital voucher.

How is it advantageous to the Consumer?

The major advantage of e-RUPI over other digital payment forms is that no bank account is required by the beneficiary, and a contactless two-step redemption process does not require sharing of personal information.

The other advantage is that it can also be accessed by basic phones, so those without smartphones or without internet access can use it, too.

Are there any benefits to sponsors from e-RUPI?

It is expected that the e-RUPI will strengthen Direct Benefit Transfer by enhancing transparency. Since vouchers do not need to be physically mailed, it will also lead to some cost savings.

What benefits accrue to the Service Providers

As a prepaid voucher, it would guarantee real-time payments to the service provider.

Who has developed the e-RUPI?

As part of its plan to promote cashless transactions, India’s National Payments Corporation (NPCI) launched e-RUPI, a voucher-based payment system. The plan has been developed with input from the Department of Financial Services, the Ministry of Health & Family Welfare, and the National Health Authority.

Which Banks issue e-RUPI?

In addition to Indian Bank and Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Union Bank of India, NPCI partners with 11 other banks for e-RUPI transactions.

Bharat Pe is not the only bank and acquiring application that is participating in E-RUPI, other applications such as BHIM Baroda Merchant Pay, Pine Labs, PNB Merchant Pay, and YoNo SBI Merchant Pay are expected to do so in the near future.

Where can e-RUPI be used now?

NPCI has already partnered with more than 1,600 hospitals where e-RUPI can be redeemed.

According to experts, in the days to come there will be a growing number of users of e-RUPI, with even the private sector using it to deliver employee benefits, as well as MSMEs using it for business-to-business (B2B) transactions.

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