E-RUPI is a cashless and contactless instrument for digital payments. Inaugurated by Prime Minister Narendra Modi on Monday, payment mechanism aims to stop discrepancies in government welfare schemes and to ensure that the benefits reach the right people.

The benefits are transferred on mobile phones of beneficiaries in the form of QR code or SMS. Also e-RUPI does not require any physical interface for transactions. It is prepaid and thus considered safe.

Here’s all about the e-RUPI:

*E-RUPI  is a new digital payment platform that is meant to plug leaks and ensure safe delivery of welfare services.

*E-RUPI connects service sponsors with beneficiaries and service providers digitally without any physical interface. The service ensures that the payment is made to the service provider only after the service is provided. E-RUPI is pre-paid in nature and therefore assures payment to the service provider without needing the involvement of an intermediary.

* Now, beneficiaries can receive a QR code or an SMS-based electronic voucher on their mobile phones and they do not require a card, digital payment app or even internet banking access to redeem the e-voucher, according to a statement from the PMO.

*The digital solution is considered a safe option as it ensures payment only after the transaction is completed. Also, timely payment is assured to the service provider without the involvement of any intermediary, given its pre-paid nature.

*The biggest advantage of the system is that it prevents leaks. The delivery of government’s welfare services will be safe and tamper proof.

Where can e-RUPI be used?

India’s newest digital payments system can be used to deliver services meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Aysuhman Bharat Pradhan Mantri Jan Arogya Yojana as well as for fertilizer subsidies. The private sector too can leverage the e-RUPI as part of employee welfare and corporate social responsibility (CSR) efforts.

How to use e-RUPI vouchers?

These vouchers are like e-gift cards, which are pre-paid. The code of these cards can be shared either via SMS or the QR code can be shared. The e-vouchers are purpose specific and even if one does not have a bank account or a digital payment app or a smartphone can benefit from these vouchers.