E-RUPI Digital Payment: What Is It and How to Use It?

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The Government of India launched the e-RUPI digital payment system on 2nd August 2021. It’s a whole new cashless, contactless way of payment for the “unbanked” population. But can e-RUPI be useful for you as well?

Keep reading to find out exactly what it is and how to use it. 

Prime Minister Narendra Modi has been trying to promote the ‘Go Digital’ campaign ever since the Demonetization of 2016. But there were a lot of roadblocks along the way. The majority of India comprises a rural population. This segment neither possessed a smartphone nor an internet connection. A sizable portion did not even possess a bank account. 

The e-RUPI digital payment, however, does not require any of these to function. Hence, it truly can show the way to a new Digital India. A Digital India that is inclusive of those who do not have access to advanced tech.

Let us directly dive into what exactly this e-RUPI digital payment is and how to use it: 

What is e-RUPI Digital Payment?

e-RUPI is a pre-paid form of payment. It is essentially an e-voucher.  The government sends the voucher to the mobile of a person through a QR code or a simple SMS string code. One can redeem the voucher after the required service provider verifies it. The process of receiving and using this e-voucher is completely cashless and contactless. Of course, that’s an added benefit during the pandemic.

The National Payments Corporation of India created e-RUPI digital payment in collaboration with:

  • Department of Financial Services 
  • Ministry of Health & Family Welfare
  • National Health Authority.

According to Narendra Modi, e-RUPI digital payment is going to save the government 1.78 lakh crore rupees. Pilferages and fake beneficiaries previously cost the government a lot money. 

The prime motivation behind shifting to e-RUPI digital payment is making the process of subsidy-giving direct and frictionless. These subsidies include gas subsidies, ration, access to maternal and child welfare schemes, etc. The present focus is on the frictionless delivery of vaccines. 

How does e-RUPI stop pilferages? It directly transfers the money to the beneficiary. There is no involvement of a middle man who can make away with this money. Similarly, there can be no fake beneficiaries because only the person who has the e-voucher can use it. It is not only person-specific, it is purpose-specific. This means, you cannot use a ration voucher ration to get medicines. 

Let’s get into how these e-RUPI vouchers actually work.

How To Use e-RUPI?

What you DON’T NEED to have to use the e-RUPI digital payment system:

  1. Smartphone 
  2. Internet Banking 
  3. Debit/Credit Cards 
  4. Digital Payment App (like Google Pay, PayTM etc.)

What you NEED to have to use the e-RUPI digital payment system: 

  1. Verified Aadhar Card Linked with your Mobile Number

Yes, that’s it. That’s the one thing you need to avail of the e-RUPI digital payment system. 

How exactly does the e-RUPI transaction process look like?

The government sends the e-voucher directly to your mobile phone. This can either look like a QR code or a simple SMS string code. Remember, only YOU can use it. You cannot cash out or transfer the voucher to another person. And you can use it for only the SPECIFIC PURPOSE that the government has issued it for.

So, if the government gives you a voucher for ration, you can only use it to get ration. 

Once you have the e-voucher in your phone, head over to the required service provider. Let’s say this is your local ration shop. Now, the ration provider will have to verify your voucher. He will scan the code and you will receive a verification code. Show this code to the ration provider, and your transaction is complete! 

It’s quite easy, isn’t it? The e-RUPI digital payment is a part of the Direct Benefit Transfer (DBT) program of the Indian Government. 

Currently, 11 banks associate themselves with the e-RUPI digital payment plan. 

This truly can connect “unbanked” India with Digital India. But that also depends on how many people have access to the Aadhar Card. 

Do you think the e-RUPI idea will work out perfectly? Let me know in the comments below!

Frequently Asked Questions

Is e-RUPI a cryptocurrency?

No, e-RUPI is not a cryptocurrency. It is not a Central Digital Bank Currency (CDBC) either. e-RUPI is in fact, not a currency as all. This cannot be transferred. e-RUPI is essentially just a prepaid e-voucher that can be redeemed. It cannot be cashed out either. e-RUPI is person and purpose specific.

Who can use e-RUPI?

e-RUPI is originally meant for the rural, unbanked population who normally don’t have access to digital payment facilities. It is a part of the DBT scheme meant to transfer subsidies directly. However, its usage might not remain limited to that. It might be used by the corporate sector also. e-RUPI has the potential to be used by employees to redeem food or grocery vouchers provided by their companies.

What is the e-RUPI app?

The e-RUPI app is not on Google Play yet. The e-RUPI voucher will be transferred through SMS string code as well. This means that the e-RUPI app possibly won’t be mandatory while making e-RUPI digital payments. However, the app might make the transaction process smoother.

How to download e-RUPI app?

The e-RUPI app is not yet available on Google Play or npci.org.in. However, it should be available soon enough. The e-RUPI digital payment plan however was launched on 2nd August, 2021 itself.

How to buy e-RUPI?

e-RUPI cannot be bought. These are e-vouchers that are issued by the government or other bodies for providing subsidies. e-RUPI is non-transferable and non-cashable. You cannot buy anything with e-RUPI that the voucher does not specify.

Is e-RUPI transferable?

No, e-RUPI digital payment is non-transferable. It does not function like cash but rather like a voucher. Only the pre-decided beneficiary can use the voucher for the specific purpose it is meant for.

What is the significance of e-RUPI?

e-RUPI digital payment can save the Indian Government 1.78 lakh crore rupees. It is a system of Direct Benefit Transfer that prevents pilferages and fake beneficiaries from siphoning off money. e-RUPI is also the first step towards a truly Digital India that accommodates the rural unbanked population.

Can e-RUPI be cashed out?

No, it cannot be cashed out. It is essentially an e-voucher that has already been paid for. e-RUPI digital payment is meant for the direct transfer of subsidies. You can only pay for subsidized articles like LPG or ration or medication with e-RUPI.

Do I need a smartphone for e-RUPI?

No, you don’t need a smartphone for e-RUPI digital payment. The e-voucher can be sent through a simple SMS string code that does not even require an internet connection. Since e-RUPI was created with the rural population in mind, advanced technology is not required to avail of e-RUPI.

Do I need internet banking for e-RUPI?

No, you do not need internet banking for e-RUPI. The only thing that you need is a verified Aadhar card and a linked mobile number. You do not even require a credit/debit card for e-RUPI digital payment.

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