E-Rupi Digital Payment Platform- First step towards adoption of digital currency in India



On 2 August 2021, PM Narendra Modi launched a digital payment platform called e-RUPI Digital Platform. National Payments Corporation of India (NPCI) in association with Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and partner banks, has launched an innovative digital solution – ‘e-RUPI’.

 This platform is a cashless and contactless instrument that will be used for making digital payments. It is a QR code or SMS string-based e-voucher which will be delivered to the mobile of the users. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting e-RUPI. e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations or Government 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.

Uses of E-Rupi

With the help of the e-RUPI platform, the payment of the service provider will be made only after the completion of a transaction. This payment platform will be prepaid in nature which does not require any kind of intermediary to make payment of the service provider. Other than that this platform can also be used for delivering services under schemes that are meant for providing drugs and nutritional support like mother and child welfare scheme, TB eradication program, drug and diagnostic under a scheme like Ayushmann Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc. The private sector can also leverage these digital vouchers for their employee welfare and corporate social responsibility programs. Leak-proof revolutionary delivery of welfare services will be ensured through this initiative.

Voucher Issuing Procedure

The e-RUPI digital payment system has been developed by the National Payment Corporation of India on its UPI platform. The national payment corporation of India has boarded banks that will be the issuing authority of the voucher. The corporate or government agency is required to approach the partner bank (private and public sector lenders) along with the details of the specific person and purpose for which the payment is required to be made. The identification of beneficiaries will be done by using their mobile number voucher allocated by the bank. This platform will be our revolutionary digital initiative which will improve the standard of living and make the procedure of payment simple.

Benefits for Corporates

  • Corporates can enable well-being of their employees
  • End to end digital transaction and doesn’t require any physical issuance hence leading to cost reduction
  • Voucher redemption can be tracked by the issuer
  • Quick, safe & contactless voucher distribution

Benefits for Hospitals

  • Easy & Secure – Voucher is authorized via a verification code
  • Hassle free & Contactless payment collection – Handling of cash or cards is not required
  • Quick redemption process – The voucher can be redeemed in a few steps and lesser decline due to pre-blocked amount.

Benefits to the Consumer

  • Contactless – Beneficiary should not carry a print out of the voucher
  • Easy redemption – 2 step redemption process
  • Safe and Secure – Beneficiary doesn’t need to share personal details while redemption hence privacy is maintained
  • No digital or bank presence required – Consumer redeeming the voucher need not have a digital payment app or a bank account

Partner Banks

  • Axis Bank
  • Bank of Baroda
  • Canara Bank
  • HDFC Bank
  • ICICI Bank
  • Indusind Bank
  • Indian Bank
  • Kotak Bank
  • Punjab National Bank
  • State Bank of India
  • Union Bank of India

Sourabh Agarwal
Sourabh Agarwalhttps://www.quora.com/profile/Sourabh-Agarwal-163
Intern at Rasesh Shah and Co. | CA Finalist

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