PM launches e-RUPI: Govt will send money to your mobile through SMS vouchers

The tool has been developed by National Payments Corporation of India on its UPI platform in collaboration with Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority.

What is e-RUPI? How does this work?

According to a tweet by Prime Minister Narendra Modi, ‘e-RUPI is a cashless and contactless means for digital payments.’

e-RUPI is a ‘QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries,’ said the official press release.

It will act as a prepaid voucher that can be redeemed as payment to the service provider, eliminating the need for a card, digital payment app or internet banking access. It will digitally connect the sponsors of the service providers with the beneficiaries and service providers. It assures ‘on time payment’ without the involvement of any intermediary. According to the official statement, “It also ensures that payment is made to the service provider only after the transaction is completed.”

The digital payment solution has been developed by National Payments Corporation of India (NPCI) in collaboration with Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority on its UPI platform.

Users can redeem the voucher by scanning a QR code received through SMS.

How e-RUPI digital payment will work

The government will send the vouchers directly to the mobile numbers of the beneficiaries instead of depositing cash in the bank accounts. The citizen’s mobile number and identity will be verified before sending the e-RUPI coupon. “e-RUPI connects sponsors of services with beneficiaries and service providers in a digital manner without any physical interface,” the Prime Minister’s Office said in a notification.

E-RUPI Digital Payment: Benefits

E-RUPI payment mode is not related to any app or mobile banking. So anyone who has any phone can access these electronic coupons. User can redeem the SMS Voucher at the service provider. Payment to the provider will be processed only when the transaction is completed. The prepaid nature of this payment ensures timely payment to the service provider without the involvement of any intermediary.

Where e-RUPI digital payment will be used

The government wants to use the e-RUPI payment mode to deliver financial benefits under Direct Benefit Transfer (DBT) schemes such as mother and child welfare schemes, TB eradication programmes, medicines and diagnostics under schemes like Ayushman Bharat Pradhan Providing medicines and nutritional support. Mantri Jan Arogya Yojana, Fertilizer Subsidy etc. The private sector can also use e-RUPI digital vouchers as part of their employee welfare and corporate social responsibility programmes.

“Not only the government, if any general organization or organization wants to help someone in their treatment, in their education or in any other work, they will be able to give e-RUPI instead of cash. This will ensure that the money given by them is used for the same work for which that amount has been given,” PM Modi said.

Where can e-RUPI be used?

According to the official statement, the digital payment service can be used to ensure ‘leak-proof delivery of welfare services’. It can also be used to provide services under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, Fertilizer Subsidy etc. Mother and Child Welfare Schemes, TB Eradication Programmes, Medicines and Diagnostics under Schemes for providing medicines and nutritional support. Is.

As far as the private sector is concerned, the government suggested that the sector can avail these digital vouchers as a part of its ’employee welfare and corporate social responsibility programmes’.

How is e-RUPI different from other digital payment apps?

The main difference between e-RUPI and other online payment apps is that e-RUPI is not a platform or app. It is a voucher that can be redeemed only for specific services. Unlike other payment services, the user does not need a digital payment app or even a bank account to redeem this voucher.

What are the benefits of using e-RUPI?

According to the NPCI website, this is beneficial for corporates as it is an end-to-end digital transaction that does not require any physical issuance. Hence, this will bring down the cost for the organisation. Additionally, the website reveals that the issuer will be able to track voucher redemption.

According to the official statement, e-RUPI will be beneficial for the users as it is “easy and secure”. Since it has a pre-blocked amount, the chances of the transaction getting rejected will be significantly reduced. According to NPCI, it has a two-stage redemption process and the user is not required to share any personal details while redeeming the voucher. Notably, consumers do not need a digital payment app to redeem the voucher.

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