e-RUPI digital payment platform: Know use-cases and how it works

e-RUPI voucher – a person and purpose specific digital payment solution – is now a reality. Prime Minister Narendra Modi on August 2 launched a cashless and contactless payment instrument e-RUPI that will help in making online payments for services such as Covid-19 vaccination and direct benefit transfers.

“The e-RUPI initiative is an innovative model of enabling digital transactions through voucher QR codes and links through both smartphones and feature phones without an intermediary or a bank account,” said Rajesh Mirjankar, MD & CEO, Infrasoft Technologies, which is providing the e-RUPI technology stack to banks. Currently, it has two banks of the 11 live banks as per NPCI and are in talks with other banks.

How will e-RUPI work?

e-RUPI voucher is a QR code or SMS string-based e-voucher. It will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

“If I want my employees to take Covid-19 vaccines on office expenses, I can issue them e-RUPI vouchers through the portal. They will get a QR Code or SMS delivered to their mobiles. They can walk in to any e-RUPI enrolled Covid-19 centre and get vaccination done. At the back-end the company has already paid for it. They don’t have to file reimbursements for the same. It’s a prepaid voucher,” said Siddharth Mehta, CEO and MD at Freecharge.

Similarly, if the government has to facilitate direct benefit transfers of subsidies, it can simply issue these vouchers to the beneficiaries via banks.

“With e-RUPI, the government has successfully created a direct channel to reach and help the beneficiaries. The system will now allow the Indian government to implement their welfare policies at speed and scale eliminating the multiple tedious processes beneficiaries went through to get funds previously,” said Mirjankar.

Speaking at the launch, Prime Minister Modi emphasised that e-RUPI vouchers are purpose-specific and will ensure that the benefits of the voucher are availed for the services it is meant for.

“The e-RUPI voucher is going to play a huge role in making digital transactions, and DBT more effective. This will help everyone in targeted, transparent and leakage free delivery,” said Modi.

Other use-cases

Apart from Covid-vaccination and DBT, which are the two most talked about services to be availed via e-RUPI, there could be multiple use-cases. The corporates offer a lot of services for their employees for which latter files reimbursements. For example, transport expenses. If a corporate issues e-RUPI vouchers to its employees, they can easily pay it via these vouchers. They will not have to file reimbursements that involve producing physical bills.

“The flexible and scalable framework will pave the way for the use of prepaid vouchers in public, private, and corporate setups. e-RUPI would also promote financial inclusion by enabling the underbanked population to receive the benefits and funds of welfare schemes and play a crucial role in bolstering the economy of the country from the ground up,” said Mirjankar.