E-RUPI Contactless Digital Payment Platform - Meaning, Benefits & How Does Operate

The Government Of India appears to have created a strategy to harness digital infrastructure to ensure leak-proof delivery of its welfare packages. The concept is simple and utilized in the United States, Hong Kong, and various other countries: prepaid vouchers for specified uses. As a trailblazer in fintech, and given its tendency for techno-solutionism, India is doing something similar by launching a new payment system. The digital voucher-based electronic payment system known as "e-RUPI" is expected to be the first step toward creating a digital currency.

What exactly is e-RUPI?

e-RUPI is a wholly cashless and no-contact electronic payment instrument that will be delivered to beneficiaries' mobile devices (even mobile devices that are non-android or iOS) as either a QR code or an SMS-based e-voucher. Simply defined, it functions similarly to a coupon that may be given to partake of specified services without requiring extra verification or documentation.

Given the large part of the Indian populace that is unbanked or has limited access to the internet, e-RUPI presents a smooth and convenient method for beneficiaries to redeem services provided by the government. The e-RUPI voucher can be used without a card, without downloading a digital payments app, and even without having a bank account. The QR codes or SMS vouchers will be linked with a pre-allotted sum and can only be utilized once by the individual in whose name it was issued. Crucially, the payment can only be completed after the beneficiary avails of the relevant service or services.

How is e-RUPI Different From UPI?

The electronic rupee (e-Rupee) is a form of sovereign money, but UPI programs such as PhonePe, Google Pay, NEFT, and IMPS are other methods of transferring cash or payment mediums. The primary distinction is that UPI transactions are entirely supported by actual currency, whereas the digital rupee is a legal tender that isn't backed by physical money.

Any UPI transaction involves bank intermediation. When you use a UPI app, your bank account is debited, and funds are transferred to the recipient's bank. With paper money, you can withdraw a certain amount from the bank, keep it in your wallet, or spend it anywhere that banks wouldn't know.

Similarly, in e-RUPI, you will withdraw the digital currency and save it in your mobile wallet. When you make a transfer to an entity or to another person, the money moves from your digital wallet to theirs. There is no bank routing or intermediation.

Services That e-RUPI Covers

These are just a handful of the currently available schemes; it is anticipated that more schemes will be covered under the e-RUPI digital payment solution in the future.

The private sector can also reap the benefits of the e-RUPI. For instance, instead of giving you cash, your employer can provide you with e-RUPI vouchers to cover your travel, dining, and health care expenses.

Banks That Issue e-RUPI

For e-RUPI transactions, the NPCI (National Payment Corporation of India) has teamed up with 11 banks. They are listed below:

  • Axis Bank
  • Canara Bank
  • Punjab National Bank
  • Bank of Baroda
  • HDFC Bank
  • Indian Bank
  • ICICI Bank
  • Kotak Mahindra Bank
  • Union Bank of India
  • IndusInd Bank
  • State Bank of India and

How Does e-RUPI Operate?

  • The corporate/Government Department (Sponsor) communicates information (specify fields such as name, cell phone number, amount, the purpose of the voucher, expiry date, and so on) with Issuer Bank to issue e-RUPI.
  • The issuer bank/payer PSP submits a request to the NCPI (National Payments Corporation of India) to create an e-RUPI.
  • NPCI sends a success confirmation notification to Issuing Bank/Payer PSP. The issuer bank/payer PSP certifies e-RUPI generation back to the corporate/government entity, which will then distribute the QR or SMS string to the recipient.
  • Beneficiary contacts merchant thru e-RUPI for redemption. Merchants validate e-RUPI vouchers, assess beneficiaries, and commence redemption requests. 
  • The merchant gives service to the recipient following successful redemption confirmation.

Benefits Of e-RUPI Digital Payment Solution 

  • Cash, credit and debit cards, internet banking, or a digital payment app are not required for the e-RUPI transfer.
  • Because the transfer is person- and purpose-specific, every e-RUPI transaction is a one-time thing. As a result, the concern of benefits being siphoned off is uncommon. Queues, intermediaries, and touts are avoided as well. An OTP will be needed for advancing with the e-RUPI payment at the time of use, and therefore the intended beneficiary will remain in charge, for the most part.
  • Because the beneficiary is not required to provide any personal information, the security encryption is more excellent.
  • The e-RUPI payment solution enables the beneficiary to conduct financial transactions even if they do not have an account. Higher take-up in rural regions and among financially disadvantaged persons would be conceivable because of this flexibility in the system.
  • There is also a huge opportunity to benefit small businesses through various government programs directly. This would aid the impoverished in reaching long-term economic objectives and livelihoods.
  • It will aid in the financial integration of the residents of the country. It will also ensure that public services reach out to lists-mile consumers efficiently and transparently, with no leakage.
  • The e-RUPI solution is not only secure but also simple to use. As a result, illiterate people will benefit from this technology.


The e-RUPI Digital Payment Solution is a sensible endeavour by the government, and it can create numerous favourable chances for the recipients. There is a large population in India that does not have access to banking services, but with the introduction of e-RUPI, all of these members of our society will also receive all of the government's financial benefits in the fields of health, medications, fertilizers, child welfare, subsidiaries, and more.

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