DNA Explainer: e-RUPI - How beneficiaries will receive money through the digital payment solution

Launched by Prime Minister Narendra Modi on August 2, e-RUPI, is an electronic voucher-based payment solution. The new financial tool is aimed to ensure targeted and leak-poof transaction with minimum intermediaries between beneficiaries and governments.

e-RUPI is a cashless and contactless digital payment solution. Beneficiaries will receive welfare money through a QR code or SMS string-based e-voucher. This direct delivery of money to a beneficiary’s mobile phone is aimed at furthering the good governance focus of Digital India.

Developed by the National Payments Corporation of India on its UPI platform, the project is a collaboration which also had Ministry of Health & Family Welfare, the National Health Authority and the Department of Financial Services onboard.

How e-RUPI will redefine delivery of welfare money to beneficiaries?

The primary function of the r-RUPI digital payment solution is bridging the gap between beneficiaries and sponsors while limiting physical contact and touch points in the process of service delivery. Digital delivery of welfare schemes is the need of the hour in today’s pandemic-driven times.

Some of the benefits of e-RUPI are:

Cashless and contactless digital payment.

Connects service sponsors and beneficiaries digitally.

Ensures leak-proof delivery of various welfare services.

— Narendra Modi (@narendramodi) August 1, 2021

The e-RUPI vouchers will be pre-paid. The leak-proof technology will ensure that money transfer takes place once the transaction is completed at the end of the beneficiary. Beneficiaries will not need any card, digital payments app or internet banking facility. 

The scheme will be supported by several banks including State Bank of India, Punjab National Bank, Bank of Baroda, Axis Bank, ICICI Bank and HDFC Bank.

What all schemes are expected to be delivered via e-RUPI?

The government envisions e-RUPI as a revolutionary step towards transparent delivery of welfare schemes. In its statement, the government said that the voucher-based solution can be leveraged not just for money transfer schemes but also for delivery of medicine, diagnostic and nutritional support under Mother and Child welfare schemes, TB eradication programmes, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc.

Will e-RUPI be limited to government welfare schemes?

No. While the government will strive to implement the e-RUPI voucher-based digital payment solutions in its schemes to provide beneficiaries with the services, it has also opened the door for the private sector to leverage the platform.

The government has invited private organizations to use the digital e-RUPI vouchers for their corporate social responsibility (CSR) programmes and schemes for welfare of employees.