Check out e-RUPI — the new digital payment system and how to make use of it

New Delhi: A new digital payment system has been launched in India. e-RUPI, cashless instrument enabling digital payment through mobile phones, was launched by the Government of India. It is a mobile phone-based e-voucher solution meant for a specific purpose payment.

While launching the new facility, Prime Minister Narendra Modi hoped that e-RUPI would further boost the government's direct benefit schemes that aim at transferring aid to common man directly through banks, in order to avoid middlemen.

The new scheme allows government agencies, corporate entities and the selected people to issue digital vouchers against any amount less than Rs.10,000.

For example, a firm can send e-RUPI voucher to the mobile phone numbers of their employees for enabling them to take coronavirus vaccination. At the hospital, the digital voucher shown by the employee will be scanned by the hospital and the payment is effected.

By implementing the new scheme, the Union Government aims to eliminate totally the exploitation of middlemen in the transfer of the direct benefit schemes to the poor people. The scheme is being implemented by the National Payments Corporation of India (NPCI).

How it works
The governments or corporate entities can approach the banks which offer this facility and issue a voucher for a specific amount less than Rs 10,000. The voucher will be sent to the mobile phone of the beneficiary in the form of QR Code or SMS string.

The beneficiary has to show the QR Code or SMS string at the counter where he or she has to make a payment. It will be scanned using a mobile phone at the counter.

During scanning, a 6-digit authentication code will be generated. The beneficiary has to tell this authentication code to the person sitting at the counter. Once, voucher verification gets completed, the payment is made.

1. The beneficiary need not possess any bank account or online banking facility or currency.

2. Others cannot use your e-RUPI code because it needs authentication from your side.

3. You don't have to share KYC details for this transaction.

General queries
Could individual transactions be possible?
e-RUPI is not meant for transactions between individuals. It is an e-voucher payment meant for a specific purpose. This e-voucher can be redeemed only by the authorized entity.

Are e-RUPI transactions possible without a bank account?
The e-voucher is given to a person for a specific purpose. In order to use it, you don't have to hold a bank account. If there is no smartphone, the e-voucher will be delivered to your phone in the form of an SMS string. It can be easily be scanned at the place where you submit it by using mobile phones.

How many times can you use an e-voucher?
Voucher can be used only once. At present, a voucher up to the value of Rs.10,000 can be issued. You are not allowed to use this voucher for any other purposes. You are also barred from exchanging e-RUPI voucher with anyone.

Which are the banks offering this facility?
SBI, Union Bank of India, Punjab National Bank, Bank of Baroda, Axis Bank, Canara Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Indian Bank and Kotak Bank.

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