Latest: PM of India has launched an electronic voucher-based digital system for a cashless and contactless mode of payment called e-RUPI on the 2nd of August 2021. The aim of this one-time payment mechanism is to stop leakages in the government welfare scheme.
The benefits are delivered to the beneficiaries and are transferred on mobile phones in the form of QR codes or SMS, which eliminates the possibility of being misused.
E-RUPI doesn’t require any physical interface for transactions which makes it very hassle-free as it is safe and pre-paid.
Here are some of the benefits of e-RUPI as tweeted by the PM:
- Cashless and contactless digital payment
- Connects service sponsors and beneficiaries digitally
- Ensures leak-proof delivery of various welfare services
This can also be used by the private sector to leverage the new system for employee welfare. The PMO’s office said that this new system is capable of revolutionizing the digital payment system to ensure leak-proof delivery of welfare services.
What Is e-RUPI And How Does It work?
Beneficiaries can now receive and QR code or an SMS-based electronic voucher on their phones. They will not need any physical card or even a digital payment app to redeem the voucher to avail the services, as stated by the PMO.
Let’s say you buy a product and receive a voucher on the purchase, with e-RUPI you don’t need to carry the voucher in the physical form, it can be sent to your mobile phone in the form of a QR code or an SMS. This process is safe as it ensures payment only after the transaction is completed. It ensures timely payment to the service provider as it is prepaid.
e-RUPI has been developed by the National Payments Corporation of India (NPCI) with the other government departments. Infrasoft Tech provides the e-RUPI technology stack to banks by helping them implement the right technology by integrating the existing systems to deployment as per their target beneficiaries.
Infrasoft Tech is a Mumbai-based 26-year-old fintech firm serving more than 500 institutions across 56 countries with its banking tech services.
Here’s a List of Banks Live with e-RUPI:
- Axis Bank
- Bank of Baroda
- Canara Bank
- HDFC Bank
- ICICI Bank
- Indusind Bank
- Indian Bank
- Kotak Bank
- Punjab National Bank
- State Bank of India
- Union Bank of India
Fintech Industry Leader’s Comments:
“This is the next best step to take high end of tech to bottom of pyramid. It will help the Government to dispense the specific policy benefit to an identified user segment without any misuse of the funds or delay. The funds will not need to move around in banks but the beneficiary can directly go to end point to avail the intended benefit.
Beyond a code sending to mobile number of a user, I believe the upgrade can also scan an Aadhaar card at the dispensation counter and identify the user for the respective service. This is the true test of network that has been created at the last mile in India because at PayNearby our merchants will be able to identify the user for right benefit and deliver it in pointed / specific manner. Targeted, transparent and leakage free delivery to the end point is the intention of policy makers and we are happy that PayNearby will be able to enable this objective. The Central Bank Digital Currency movement has already started by India now. While the world is talking of Central Bank Digital Currency, India has already launched it today.” – Anand Kumar Bajaj, Founder & CEO, PayNearby
“We are glad to see e-RUPI which is a great way to implement person and purpose specific digital transactions. We are also looking forward to seeing the features of central bank digital currencies and how they will work. These are great steps towards forming a complete digital economy that have their own unique roles. We believe crypto assets, along with these innovations like e-RUPI and digital currencies, can co-exist in the digital Indian economy.’’-Avinash Shekhar, Co-CEO of ZebPay
“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. We are proud to be associated with the e-RUPI initiative through our client banks. NPCI has been at the forefront of digital innovation for payments in India and we are pleased to be offering the entire NPCI product stack through our products to our client banks.
With e-RUPI, the government have 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. 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. The flexible and scalable framework will also pave the way for the use of prepaid vouchers in public, private, and corporate setups.
InfrasoftTech provides the e-RUPI technology stack to banks by helping them in implementing the tech right from integration with the existing systems to deployment as per their target beneficiaries. Currently, we are working with two banks of the 11 live banks as per NPCI. We are shortly adding more client banks with the e-RUPI features.”-Rajesh Mirjankar, MD & CEO, Infrasoft Technologies Ltd
“The launch of e-RUPI is a landmark move by PM Modi to bring technology into the hands of billions, specially at the last mile. There have been many conversations around ensuring leak-proof welfare to beneficiaries by leveraging new-age tech, however, the launch of e-RUPI today makes India a global pioneer in the digital payments ecosystem. With the pandemic, the growth of the fintech sector, particularly digital payments, has been at rocket-speed. Now, with this new contactless, cashless digital payments platform, this growth will be further accelerated, specially in rural India, where most Direct Benefit Transfers are witnessed. Spice Money has been one of the most vocal supporters of tech in payments and we wholeheartedly welcome this initiative, that will further the vision of financial inclusion for all.”-Dilip Modi, Founder, Spice Money