What is e-RUPI? – Know all About It, Important Facts, Application and Supported Banks

By BYJU'S Exam Prep

Updated on: September 25th, 2023

e-RUPI digital voucher is going to play a huge role in making DBT more effective in digital transactions in India. What to know about e-RUPI? How to avail e-RUPI? Here is an article to answer all your questions. 

Prime Minister Narendra Modi has launched an electronic voucher-based digital payment solution titled as ‘e-RUPI’. It is a person-specific and purpose-specific digital payment solution. It is a symbol of how India is progressing by connecting people’s lives with technology.

What is e-RUPI

What is e-RUPI? – Know all About It, Important Facts, Application and Supported Banks

  • It is a cashless and contactless digital payment solution.
  • It is a Quick Response (QR) code or SMS string-based e-voucher, which will be delivered to the mobile of the users.
  • This voucher can be redeemed by the users without using the card, digital payments app, or internet banking access at the service provider.
  • It will digitally connect the sponsors of the services with the beneficiaries and service providers without any physical interface.
  • This e-voucher based mechanism will also ensure that the payment to the service provider is made only after the transaction is completed.
  • It is pre-paid in nature and assures timely payment to the service provider without the involvement of any intermediary.

Developer of e-RUPI

Digital payment solution titled ‘e-RUPI’ has been developed by the National Payments Corporation of India (NPCI) on its Unified Payments Interface (UPI) platform, in collaboration with Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority.

Who is Authorized to Provide e-RUPI Facilities?

What is e-RUPI? – Know all About It, Important Facts, Application and Supported Banks

  • Currently, 11 public and private sector banks will support this new payment mode.
  • State Bank of India (SBI), ICICI Bank, HDFC Bank, Punjab National Bank (PNB), Axis Bank and Bank of Baroda will provide both issuance and redemption facilities for e-RUPI coupons.
  • Canara Bank, IndusInd Bank, Indian Bank, Kotak Mahindra Bank and Union Bank of India will only issue e-RUPI coupons for now.

e-RUPI Application

It can be used in both government as well as private sector.

  • Government Sector: In government sector, this voucher will ensure leak-proof delivery of welfare services and can also be used for delivering services under schemes meant for providing drugs and nutritional support under welfare schemes like Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana, etc.
  • Private Sector: Private sector can avail these digital vouchers as part of their employee welfare and Corporate Social Responsibility (CSR) programs.

Other Important Facts Related to e-RUPI

  • e-RUPI is currently backed by the existing Indian rupee as the underlying asset and the specificity of its purpose makes it different than virtual currency and puts it closer to a voucher-based payment system.
  • Any corporate or government agency will have to approach the partner banks (private and public-sector lenders) with the details of specific persons and the purpose for which payments have to be made.
  • It does not permit direct cash-out or peer-to-peer transfer.
  • There are already many countries using this kind of voucher system namely the US, Colombia, Chile, Sweden, Hong Kong, etc.

Hence, this new digital payment system will potentially fill the gaps in digital payments infrastructure for the success of the future digital ecosystem of India.

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