e-RUPI – UPSC Prelims

e-RUPI:
  • 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).
How does e-RUPI work?
  • 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.
Features of e-RUPI:
  • 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.
Significance of e-RUPI:
  • 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.
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