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Prime Minister Narendra Modi launched e-RUPI, a cashless and contactless instrument for digital payments, this evening. The one-time payment mechanism aims to stop leakages in government welfare schemes and ensures that the benefits reach those they are meant to be. Since the benefits are transferred on mobile phones of beneficiaries in the form of QR code or SMS, there is no possibility of them being misused. To make the system hassle-free for users, e-RUPI does not require any physical interface for transactions. It is considered safe as it’s prepaid.

PM Modi tweeted some of the benefits of the new electronic voucher-based digital payment solution. He said e-RUPI will connect service sponsors and beneficiaries digitally.

The private sector can also leverage the new system for employee welfare and corporate social responsibility programmes. The Prime Minister’s Office (PMO) said the new digital payment platform is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services.

What Is e-RUPI And How Does It Work?

According to a statement from the PMO, now beneficiaries can receive a QR code or an SMS-based electronic voucher on their mobile phones and they do not require a card, digital payment app or even internet banking access to redeem the e-voucher when availing of a service. For example: You bought a product and received a voucher on the purchase. With e-RUPI, you do not need to carry the voucher in physical form. The voucher can be sent to your mobile phone in the form of a QR code or as an SMS.

The statement said the digital solution is safe as it ensures payment only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.

This system can also be of great use in ensuring leak-proof delivery of government’s welfare services, like providing drugs and nutritional support under mother and child welfare schemes, or under TB eradication programmes.

The e-voucher can be set to the beneficiaries also for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana and fertilizer subsidies etc. Since the benefits will be transferred as a voucher, they can only be used for the intended purpose

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