How Does e-RUPI Digital Payment System Work ?

e-RUPI Digital Payment System – A new digital payment token system introduced by Government of India through National Payments Corporation of India (NPCI). e-RUPI is non transferable digital vouchers based payment system which is backed by the Indian rupee as a virtual currency.  e-RUPI is built for a specific transaction for a service availed at a particular welfare centre. This will help in curbing the corruption in the welfare schemes. One should not confuse e-RUPI with the digital currency.

What is e-RUPI system?

e-RUPI is the virtual currency payment system where digital voucher are redeemed by beneficiaries when they make use of any specific government services. This digital currency doesn’t require any application or apps for making the payment. Vouchers can be redeemed at any specified point as pre defined for payment. The digital tokens will be shared with the beneficiaries by the respected welfare departments  via SMS strings or QR codes to be used for a specific purpose.

How does e-RUPI Digital Payment System work ?

This is as like Sodexo coupons or Food Cards. The big difference is there won’t be any card or coupons here. The beneficiary person will be given digital vouchers to access targeted welfare services like medicines, DBT and nutritional support, and medical diagnostics under the government’s health schemes.

  1.  A QR code or SMS-string will be sent to the beneficiary,
  2.  They will need to show it to the welfare service provider for the transaction to be complete.
  3.  No printouts would be required.
  4.  As these vouchers are created for a specific purpose, they can’t be transferred or cashed out.

e-RUPI is powered by NPCI’s UPI platform and the service has onboarded about a dozen banks to be issuing entities. The beneficiaries will be identified by their mobile number, and the vouchers will be linked to it. The digital voucher can be redeemed by the beneficiaries only. 

Also Read – How to Generate Udyam Registration Number Online

List of banks that are live with e-RUPI

InfrasoftTech provides an e-RUPI technology stack to banks by helping them in implementing the technology – right from integration with the existing systems to deployment as per their target beneficiaries. Currently, it is working with two of the 11 live banks as per NPCI. It is shortly adding more client banks with e-RUPI features.

The two banks are Punjab National Bank and Bank of Baroda.

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