Prime Minister Narendra Modi will launch e-RUPI on Monday, August 2, in a bid to further boost the adoption of digital payments in the country. The electronic voucher-based digital payment system has been developed by the National Payments Corporation of India (NPCI) on its UPI platform along with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.

What is e-RUPI?

It is a QR code or SMS string-based e-voucher delivered directly to cell phones of beneficiaries. It is a cashless and contactless means of digital payment.

With the help of the e-RUPI payment service, a user will be able redeem vouchers without a card or a digital payments app or even internet banking access.

How does e-RUPI work?

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.

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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 akin to 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.

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The government intends for these vouchers to be used mostly for health-related payments. The Centre had earlier said that it would bring in an option for vaccine e-voucher, where people will be able to buy e-vouchers for vaccination in private hospitals and gift it to others.