All you need to know about 'e-RUPI'

How Does e-Rupi work?

e-Rupi is a cashless service where the beneficiaries will receive a string of SMS based vouchers and QR code on their mobile phone. The person will not be required to use any digital payment app, card, or even access to net banking to redeem the voucher. For example, if you purchase a product, you will receive a voucher on your app in the form of SMS or QR code which you can redeem.

e-Rupi is safe and secure where the payment is ensured only after the transaction has been completed. Since, it is pre-paid in nature, you can be assured that the payment will be conducted on time and there will be no requirement of intermediary.

This cashless tool has been powered by National Payments Corporation of India's (NPCI) UPI platform where this particular service will be offered by around a dozen banks in India.

How the e-RUPI Process Works

A private organization or the government body, which is the sponsor, shares personal as well as other information of the beneficiary to one of the issuer banks or Payment Service Providers (PSPs). These issuer banks or PSPs are selected by the NPCI. Issuer banks/PSPs have to initiate a request with the NPCI to generate an e-RUPI voucher.  

The NPCI responds to this request with confirmation, post which the issuer bank or PSP informs the private organization or the government body of the generation of the e-RUPI voucher, which reaches the beneficiary in the form of SMS or a QR code from either the bank or the sponsor.  

The beneficiary can redeem the pre-paid e-RUPI voucher with a designated merchant who accepts this mode of payment. A designated merchant is provided with a facility to receive the e-RUPI voucher by the issuer banks/PSPs. The designated merchant verifies the e-RUPI voucher and initiates the redemption request. Only after the confirmation of a successful redemption will the merchant provide a particular service.  

Features of e-RUPI

Mentioned below are the key features of the e-RUPI voucher:  

1. e-RUPI is a one-time and multiple-time use pre-paid digital voucher. It is a mode of payment for a user without a card, digital payments app, or internet banking access.  
2. e-RUPI vouchers can only be issued digitally, through SMS or QR code.  
3. The person can only use the e-RUPI voucher that is issued and only for the purpose it is generated.  
4. e-RUPI voucher can be revoked by the private organization/government body that initiates the request to generate the digital voucher.  

1. e-RUPI voucher limit for a government body is Rs.1,00,000 per voucher and for a private organization is Rs.10,000 per voucher.  
2. e-RUPI vouchers can only be redeemed for person-to-merchant purchases.  
3. e-RUPI voucher's maximum validity period can be of one year or less and is decided by the issuer bank/PSP.  

Uses & Benefits of e-RUPI

A few examples of the use of the e-RUPI voucher by the beneficiary are listed below:   

1. Scholarship program for students  
2. Payment of utility bills   
3. Medical facilities or bills  
4. Sponsorship of subsidies and services  
5. Tax benefits.   

1. The transparent, quick, and contactless distribution process  
2. Easy to track vouchers and transactions   
3. Customers don't need a bank account  
4. Easy redemption process  
5. Operable on feature phones too  

Direct Benefit Transfer (DBT) will become more credible in digital transactions with the help of e-RUPI voucher.