Prime Minister Narendra Modi launched e-RUPI, a new digital payment mode, on Monday. The goal of the digital voucher is to ensure that the government’s monetary benefits reach citizens directly and in a ‘leak-proof’ manner.
“Today, the country is giving digital governance a new dimension.
The e-RUPI voucher will be crucial in making DBT more effective in the country’s digital transactions. Prime Minister Narendra Modi stated, “This will help everyone in targeted, transparent, and leakage-free delivery.”
Beneficiaries will receive an electronic voucher or coupon that can be used without the need for online banking, payment software, or other traditional payment options under this new payment system.
In laymen’s terms, e-RUPI, the new digital payment option, is an e-voucher based on a QR code or SMS string. The National Payments Corporation of India, in collaboration with the department of financial services, the ministry of health and family welfare, and the national health authority, developed the digital coupons, which are similar to Sodexo vouchers.
“e-RUPI, in a way, is Person as well as Purpose Specific. For the purpose for which any help or any benefit is being given, it will be used for that, this eRUPI is going to ensure,” PM Modi said while introducing the new digital payment mode. The government will send the voucher directly to the mobile number of the beneficiaries, instead of putting the cash in bank accounts.”
“The mobile number and identity of the citizen will be verified first before sending the e-RUPI coupons. “e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface,” the Prime Minsiter’s Office said in a notification.
“Not only the government, if any general organization wants to help someone in their treatment, in their education or for any other work, then they will be able to give e-RUPI instead of cash. This will ensure that the money given by him is used for the same work for which that amount has been given,” PM Modi added.
“The concept of electronic vouchers takes forward this vision of Good Governance. It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services,” the Centre said.
The government wants to use the e-RUPI payment mode to deliver financial benefits under Direct Benefit Transfer (DBT). The schemes like providing drugs and nutritional support under mother and child welfare schemes, TB eradication programmes, drugs and diagnostics under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, and so on.
Employee welfare and corporate social responsibility programmes in the private sector will be beneficiaries of e-RUPI digital vouchers. This new digital payment option is now accepted by 11 public and private sector banks.
e-RUPI vouchers are fully supported by the State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Axis Bank, and Bank of Baroda. These banks offer both the issuance and redemption of e-RUPI coupons.
Only e-RUPI coupons can be issued by banks like Canara Bank, IndusInd Bank, Indian Bank, Kotak Mahindra Bank, and Union Bank of India. These lenders do not offer the redeeming digital voucher option.