Prime Minister Narendra Modi launched e-RUPI. A person and purpose-specific digital payment solution in 02-082021 at 4:30 p.m. The digital payment system is cashless and contactless.

It’s a QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card digital payments app or internet banking access.

The concept of electronic vouchers aims to take forward the vision of good governance, the national payments corporation of India, on its UPI platform. The private sector can also leverage these digital vouchers as part of employee welfare and corporate social responsibility programs.

What is the E-Rupi Mechanism?

ABOUT E-RUPI: Electronic Voucher-Based Digital Payment System. Developed By NPCI, Dpt Of Financial Services, MoHFW & NHA.Person—Specific & Purpose—Specific Payments System.

Rajesh Minnetonka, the MD, and CEO of Infrasoft Technologies, informed that The E-Rupi scheme is a voucher-based payment solution that allows for offline transactions to be conducted as well. 

So, the advantage of the E-Rupi scheme is that you can have a voucher that is either an SMS or a QR code that can be provided to the end beneficiary. 

The beneficiary need not be connected to the internet. They can carry the SMS to the merchant and get that scan. And get the payment done. 

So, the advantage of this compared to the other solutions already in place is the fact that you don’t need an intermediary bank for the beneficiary to get the payment conducted. Nor do they require a working mobile connection. It can work even on feature phones.

How Does E-Rupi Work?

Typically, what happens here is that if a Corporate or the Government decides to provide these vouchers to, let’s say, its employees or the government decides to provide it to Citizens.

What you would have is that I can go to my issuing bank and say that these are the sums I want to be issued to so-and-so mobile numbers. Once that is done. The issuing bank then generates these vouchers and sends the SMS or the QR code to the beneficiaries. The beneficiary is now able to approach the merchants.

Let’s give you an example here,

If I had to provide vaccination vouchers, what I can do is just give vaccination vouchers to my employees, or the government can provide it through the Ministry of Health to various beneficiaries. And these vouchers can be taken to the hospital or the vaccination centers.

Now, even where I have to pay for the vaccination, I can just provide this SMS once the merchants scan this SMS or QRcode. What will happen is that an OTP will appear, which will come on the beneficiaries mobile.

This says OTP comes by SMS. I then enter this OTP on the merchant’s behalf, and the payment is now debited for my voucher and credited to the merchant account.

So what happens here is I don’t necessarily need to have a balance in my so-called bank account. Because I already have the voucher on my mobile. And I am just utilizing that voucher. So that ensures that the beneficiary did not have a bank account as well. All The beneficiaries need a mobile number.

When you look at the advantages of this, the rural masses will usually benefit from this. Because there are various schemes you can then launch on, let’s say, providing fertilizers, subsidies, and various other aspects, which are provided through these vouchers. Where the end beneficiary need not have a bank account.

So, when we discussed financial inclusion earlier, the theory of financial inclusion was purely by saying that you have to have a bank account. Now, you can go by the earpiece scheme and say that you just need to have a mobile phone.

What Is The Benefit Of E-Rupi?

The government said this mechanism will guarantee impregnable service of the government scheme. e-RUPI is secure, safe, and easy as it keeps the details of the recipients totally private.

The whole exchange cycle through this voucher is somewhat quicker and, simultaneously, dependable, as the necessary sum is now stored in the voucher. The government says corporate companies can utilize this technique to deliver worker advantages and use CSR reserves.

How To Issue An E-Rupi?

It’s a seamless one-time payment mechanism. It does end up connecting the sponsors of the services with the beneficiaries and service providers. It ensures that the payment to the service provider is made only after the transaction is completed. So, it’s a prepaid system.

GOVT. Or Corporate Partner With Banks

Step 1: Corps Or Govt Agencies Should Approach Partner Banks Only (Pvt & Public—Sector)

Submit Persons Details

Step 2: Corps Or Govt Agencies Need To Submit Details Of The Persons & Purpose For Payments To Be Made

User Identifyed Using Mobile Number

Step 3: Beneficiaries Will Be Identified Using Their Mobile Number.

Allocated Voucher

Steap 4: Voucher Would Be Allocated In The Name Of The Person.

How many Banks are presently associated with this system?

State Bank of India
Indian Bank, Axis Bank
Bank of Baroda
Canara Bank
IndusInd Bank
Punjab National Bank
Kotak Mahindra Bank
Union Bank of India


Sahin, a passionate Software Engineer, thrives on unraveling the intricacies of technology. With a penchant for Tech, Gaming, and IT Support, I dives into the digital realm, seeking answers to complex puzzles. My days are filled with error code, debugging, and the thrill of discovery. When things go wrong, I dive right in, figuring out what’s broken on my computer and finding clever solutions. Whether fixing code or untangling server problems, Sahin’s analytical brain thrives on challenges.

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