PM Modi Unveils e-RUPI Payments For Leak-Proof Welfare Services Delivery

Prime Minister Narendra Modi has announced a novel payment solution dubbed e-RUPI through a video conference organised today.

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Reported first by ET, e-RUPI platform essentially offers a way to transact in a cashless and contactless way. It works on an e-voucher based on a QR code or SMS string that¡¯s delivered to the smartphone of the beneficiaries.

What is e-RUPI payment platform?

The idea behind the platform is to make sure that the funds assigned for a particular task are used for that task only, and nothing else.

The platform will become helpful in providing financial and other kinds of benefits under the Direct Benefit Transfer scheme as well as for medicines and nutritional support under schemes like Bharat Pradhan Mantri Jan Arogya Yojana or specific child and women welfare schemes.

The platform allows for limiting touchpoints between the government and the beneficiary while also ensuring that the benefits reach its intended beneficiaries in a targeted and leak-proof manner, according to a release shared by the Prime Minister¡¯s office.

The platform allows for connecting of the beneficiaries or service providers in a digital manner without the presence of a physical interface. The platform is prepaid in nature and it ensures that payments are made to the beneficiary without bringing any intermediary in between.

It also ensures that the payment to the service provider is made only after the transaction is completed.

Moreover, the payment platform¡¯s mechanism would enable an individual to redeem the voucher without a card, digital payments app or internet banking access at the end of the service provider.

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e-RUPI platform has been developed by the National Payments Corporation of India (NPCI) based on its trusty UPI platform along with collaboration with the Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority.

Banks supporting e-RUPI payment

As of now, there are a total of 11 public and private sector banks that will support this new platform -- State Bank of India (SBI), ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda and Punjab National Bank (PNB) will provide both issuance and redemption facilities for e-RUPI coupons. On the other hand, IndusInd Bank, Union Bank of India, Indian Bank, Canara Bank and Kotak Mahindra Bank will only issue e-RUPI coupons for now.

Representational Image: Getty Images

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PMO Office before announcing the platform had revealed that it is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies, etc.

They also revealed that even the private sector could leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.