General Studies IIIEconomy



PM launches digital payment solution e-RUPI


  • On 2 August 2021, the Prime Minister of launched a digital payment platform called e-RUPI Digital Platform.
  • This platform is a cashless and contactless instrument that will be used for making digital payments.
  • It is a QR code or SMS string-based e-voucher which will be delivered to the mobile of the users.
  • The users will be able to redeem this voucher without any digital payment app, internet banking, or card.
  • This digital payment platform has been developed by the national payments corporation of India on its UPI platform.
  • The collaborating partners are the Department of Financial Services, the Ministry of health and family welfare, and the national health authority.
  • This initiative will connect the sponsor of services with the beneficiaries and service providers. The connection will hold in a digital manner without any kind of physical interface.

Uses Of e-RUPI Digital Payment Platform

  • With the help of the e-RUPI platform, the payment of the service provider will be made only after the completion of a transaction.
  • This payment platform will be prepaid in nature which does not require any kind of intermediary to make payment of the service provider.
  • Other than that this platform can also be used for delivering services under schemes that are meant for providing drugs and nutritional support like mother and child welfare scheme, TB eradication program, drug and diagnostic under a scheme like Ayushmann Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.
  • The private sector can also leverage these digital vouchers for their employee welfare and corporate social responsibility programmes.
  • Leak-proof revolutionary delivery of welfare services will be ensured through this initiative.

Voucher Issuing Procedure

The e-RUPI digital payment system has been developed by the National Payment Corporation of India on its UPI platform. The national payment corporation of India has boarded banks that will be the issuing authority of the voucher. The corporate or government agency is required to approach the partner bank (private and public sector lenders) along with the details of the specific person and purpose for which the payment is required to be made. The identification of beneficiaries will be done by using their mobile number voucher allocated by the bank. This platform will be our revolutionary digital initiative which will improve the standard of living and make the procedure of payment simple.

Objective Of e-RUPI Digital Payment

  • The main objective of the e-RUPI digital payment platform is to provide a cashless and contactless payment system so that citizens can make digital payments without any kind of difficulty.
  • With the help of this payment platform, users can make payments in a secure manner.
  • This payment platform uses QR code or SMS string-based e-voucher which will be delivered to the mobile of the beneficiary.
  • e-RUPI digital payment platform ensures the timely payment of the services without the involvement of an intermediary.
  • Users are not required to carry any cards or digital payment app or have internet banking access in order to make payments which will make the payment process simple and secure

Benefits Of e-RUPI

Benefits for Consumers Payment processes is contactless Only have to follow a two-step redemption process need to have any kind of digital payment app or bank account consumer is not required to share his or her personal details In order to maintain privacy
Benefits for Hospitals The voucher is prepaid hence the payment process is completely secure voucher can be redeemed in few steps hospitals are not required to handle cash hence hasslefree and contactless payments can be ensured voucher is authorized through a verification code which makes the payment process easy and secure
Benefits for Corporates The well-being of employees can be enabled by the corporate voucher distribution quick, safe, and contactless issuer can track the voucher redemption leads to cost reduction because the transactions are digital and don’t require any physical issuance

About National Payment Corporation Of India

  • National Payment Corporation of India is an organization that is responsible for operating retail payments and settlement systems in India.
  • This organization has been started by the Reserve Bank of India and the Indian banks’ association.
  • This organization works under the provision of payment and settlement systems act 2017 in order to create robust payment and settlement infrastructure in India.
  • National Payment Corporation of India is a non-profit organization that works under the provision of section 8 of the companies act 2013.
  • NPCI is also responsible for maintaining the infrastructure for the banking system in India for physical and electronic payment and settlement systems through the use of technology.
  • This organization focuses on bringing innovation to the payment system by introducing of technology.
  • The promoter banks of NPCI are State bank of India, Punjab national bank, Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, ICICI bank, HDFC bank, Citibank, and HSBC.

Other Services Provided By NPCI

National Payment Corporation of India is responsible for operating retail payment and settlement systems in India. There are few services that are offered by national payment corporation of India which are as follows:-

  • Unified payment interface (UPI)
  • Rupee and Payment (RuPay)
  • Bharat Interface For Money (BHIM)
  • National Automated Clearing House (NACH)
  • Immediate Payment Service (IMPS)
  • National Electronic Toll Collection (NETC)
  • BHIM Aadhaar
  • Adhaar Enabled Payment System(AePS)
  • National Financial Switch(NFS)
  • Cheque Truncation System(CTS)

Source: PIB

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