e-RUPI – UPSC Prelims

e-RUPI is a cashless and contactless instrument for digital payment. It is founded on the Unified Payment Interface(UPI) platform.

Purpose: It is designed to be a person and purpose-specific digital payment solution. It seeks to ensure that government schemes reach intended beneficiaries in a targeted and leak-proof manner, with limited touchpoints between the government and the beneficiary.

Developed by: National Payments Corporation of India (NPCI) in collaboration with the Department of Financial Services (DFS), the Union Health Ministry, and the National Health Authority (NHA).

The e-RUPI system relies on mobile phones. This e-voucher is intended to be a seamless, one-time payment mechanism.

A beneficiary will receive a QR code or SMS string-based e-voucher on her mobile phone. The beneficiary, then, can redeem this e-voucher at the service provider without the need for any card, digital payment app, or internet banking access.

Firstly, e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

Secondly, It ensures that the payment to the service provider is made only after the transaction is completed.

Thirdly, being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.

e-RUPI is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services.

It can be used for delivering services under schemes, meant for providing drugs and nutritional support like Ayushman Bharat fertilizer subsidies, etc.

Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.