2.8 e-RUPI: Person and Purpose Specific Digital Payment Solution

The National Payments Corporation of India (NPCI), in collaboration with the Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and partner banks, has launched an innovative digital payment solution called e-RUPI. This one-time, non-reloadable pre-paid voucher-based payment mechanism aims to streamline and secure government and corporate benefit disbursements without requiring a bank account, digital payment app, or internet access.

What is e-RUPI?

e-RUPI is a person and purpose-specific digital payment tool designed to facilitate seamless benefit transfers and payments for specific services. It uses a prepaid voucher mechanism that can be redeemed at designated merchant points without the need for a bank account or digital payment application. This makes it particularly useful for individuals who do not have access to traditional banking services.

How e-RUPI Works

1. Voucher Issuance: Organizations or the government share e-RUPI vouchers with beneficiaries via SMS or QR code. These vouchers are created with the help of partner banks and NPCI.
2. Redemption: Beneficiaries can redeem the vouchers at authorized merchants by presenting the QR code or SMS string. Merchants scan the QR code or enter the SMS string using their POS or a designated application provided by the acquiring bank.
3. No Reloading: e-RUPI vouchers are non-reloadable and can only be used once for the specified purpose. Any unused or expired vouchers are credited back to the sponsor’s account by the issuer.

Benefits of e-RUPI

For the Government

• Efficient Disbursement: Ensures targeted and timely delivery of benefits directly to the intended recipients.
• Transparency: Tracks voucher usage to ensure benefits are used for their intended purposes.

For Beneficiaries

• No Bank Account Needed: Ideal for individuals without access to traditional banking services.
• Convenience: Redeemable without the need for a digital payment app or internet access.

For Merchants

• Increased Footfall: Encourages more customers to avail services at authorized merchant points.
• Guaranteed Payment: Ensures prompt and secure payment for services rendered.

Process Flow of e-RUPI

1. Request for Service: The corporate or government reaches out to their bank to request e-RUPI service.
2. Beneficiary Details: A list of beneficiary names, mobile numbers, voucher amounts, and purposes is shared with the partner bank.
3. Voucher Creation: Banks, in collaboration with NPCI, create personalized vouchers.
4. Voucher Distribution: Vouchers are shared directly with beneficiaries or through the corporate.
5. Redemption: Beneficiaries present the QR code or SMS string to authorized merchants. The merchant scans the code, enters the amount to be debited, and validates the voucher.
6. Redemption Code: The beneficiary receives a redemption code to confirm the transaction.
7. Tracking: Issuers can track voucher redemption to monitor and analyze usage.

Challenges and Considerations

• Merchant Acceptance: Ensuring widespread merchant acceptance of e-RUPI vouchers.
• Technical Infrastructure: Developing and maintaining the technical infrastructure required for voucher creation and redemption.
• Beneficiary Awareness: Educating beneficiaries about how to use e-RUPI vouchers effectively.

Future of Financial Inclusion in India

e-RUPI represents a significant step towards enhancing financial inclusion in India. By providing a secure, person, and purpose-specific payment solution, it addresses the needs of unbanked individuals and promotes efficient benefit disbursement. As more organizations and government bodies adopt e-RUPI, it has the potential to revolutionize the landscape of digital payments and social benefits in India.

Conclusion

e-RUPI is an innovative digital payment tool that offers a seamless and secure way to disburse benefits without the need for traditional banking services. With its person and purpose-specific design, e-RUPI ensures that benefits are used for their intended purposes, promoting transparency and efficiency. As India continues to advance in digital payments, e-RUPI stands out as a pivotal tool in driving financial inclusion and transforming benefit disbursement.

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