Rohit Mehta

On Monday (02/08/2021), Indian Prime Minister Narendra Modi launched the e-RUPI, a person-specific and purpose-specific payments system.

In essence, e-RUPI will be like the gift vouchers one gets after making a payment through Google Pay. e-RUPI will operate in a similar fashion. To put it simply, these are prepaid gift vouchers that will be delivered to the mobile phones of the beneficiaries of welfare schemes in an SMS string or a QR code. These vouchers will be redeemable at specific accepting centres.

What is e-RUPI?

It is a one-time digital voucher developed by National Payments Corporation of India (NPCI) that will be transferred directly to the mobile phone as an SMS string or QR code which can be redeemed at particular merchant points that are specifically focused on delivering services related to the benefit scheme for which the money has been transferred.

Mechanism of Action of e-RUPI:

  • The issuing agency generates the e-RUPI voucher in association of a partner bank
  • The voucher is sent to the mobile number of the targeted individual as an SMS. The SMS contains a string code along with a QR code link.
  • Smartphone users with a data connection can click on the link to display the QR code while feature phone users can just share the string code with the executive at the designated redemption center.
  • The individual receives an OTP on his mobile number which he shares with the executive at the counter and the transaction is completed through the receiving bank.
  • The individual does not need to have a bank account or debit card to avail of this facility.

At the moment 11 banks are live on the e-RUPI platform and more are joining gradually. 

Sr. No.Bank NameIssuerAcquirer
1Axis Bank
2Bank of Baroda
3Canara Bank 
4HDFC Bank
5ICICI Bank
6Indusind Bank 
7Indian Bank 
8Kotak Bank 
9Punjab National Bank
10State Bank of India
11Union Bank of India 

Benefits Of e-RUPI

Benefits for Consumers Payment processes is contactless Only have to follow a two-step redemption process need to have any kind of digital payment app or bank account consumer is not required to share his or her personal details In order to maintain privacy
Benefits for Hospitals The voucher is prepaid hence the payment process is completely secure voucher can be redeemed in few steps hospitals are not required to handle cash hence hassle-free and contactless payments can be ensured voucher is authorized through a verification code which makes the payment process easy and secure
Benefits for Corporates The well-being of employees can be enabled by the corporate voucher distribution quick, safe, and contactless issuer can track the voucher redemption leads to cost reduction because the transactions are digital and don’t require any physical issuance

The platform is developed by the National Payments Corporation of India (NPCI) in collaboration with the Department of Financial Services (DFS), Ministry of Health & Family Welfare (MoHFW), and National Health Authority (NHA).