E-RUPI, a step towards DIGITAL INDIA

E-RUPI, a step towards DIGITAL INDIA

Back in the day, when the government paid part of your debt by providing a subsidy. Here, you have to pay the reduced price and the government will return the left to the company that gives you the said product.However, there was a major problem with the PDS (Public Distribution System). The government has never reached out to the real beneficiaries as there were many brokers or intermediate people who allowed you to get this subsidy or you did not qualify for this. That is how the government loses millions in the name of funding.

Aadhar and Jan Dhan Account then change the status that allows your grant to be credited to your bank account.But still, the problem arises as several people in INDIA do not have a bank account. And obviously, the government can't leave them like this.What then?This is followed by a voucher-based program.But that would not be possible to provide a voucher for everyone physically.This is where e-RUPI comes into play.

"A fast real-time payment system developed by the National Payments Corporation of India"

E-RUPI is an e-voucher, which will be sent to beneficiaries with a QR code and an SMS-based voucher where the money will be transferred directly to their bank account.The honorable Prime Minister launched e-RUPI on August 02, 2021.Prime Minister Mr. Narendra Modi said the voucher-based system will “play a huge role in making Direct Benefit Transfer more effective in digital transactions in the country and give a new dimension to digital governance. This will help everyone in targeted, transparent, and leakage-free delivery … e-RUPI is a symbol of how India is progressing by connecting people’s lives with technology” 

According to Think360Co-founder Mr. MonishSalot, “The instrument allows users to make digital payments – not just in a traditional digital sender to digital receiver way, but also in a digital sender to offline receiver manner.”

WazirX CEO Nischal Shetty adds that e-RUPI heralds data privacy and security, just like cryptocurrencies, as intimate personal details are not required during the redemption of vouchers. Overall, this bodes well for digitizing India’s financial stack.” 


Safe and Safe: The beneficiary does not need to share his or her personal information during the redemption process so privacy is maintained.

Easy and Secure:The voucher is authorized with a verification code.Hassle-free & Contactless Payment Collection: Money management or cards are not required. With the use of E-rupi there will be no physical interference. The process will connect with the sponsor of services and beneficiaries directly thus removeing total physical interference.

Transparency: As a digital payment system it improves visibility significantly.

Quick Recovery Process: A voucher can be redeemed in a few steps with a small discount due to a previously restricted amount.

Saving: e-RUPI is expected to play a key role in strengthening Direct-Benefit Transfers and making them more transparent. As there is no need for physical vouchers to be issued, it will also lead to savings.

Usage:It can be used to send money to the recipient's cell phone for a specific purpose in the form of a quick response code or a text-based e-voucher. This can be used to purchase certain goods or services, to ensure that funds are used for the intended purpose.E-RUPI can also be used by lenders to give creditors credit where capital is not used.There are many places where you can use such a program. As the government has seen- “It can also be used to bring services under drug schemes and nutrition support under Maternal and Child Welfare Schemes, TB eradication programs, drugs and diagnostics under schemes such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer grants, etc.

E-RUPI vs CryptoCurrency:A cryptocurrency, crypto-currency, or crypto is binary data designed to function as a means of exchange.It is a program that allows secure online payments that are displayed according to real tokens.

The goal of cryptocurrency and e-RUPI is the same: to reach the number of people without banks. But a different approach. "Cryptocurrencies are still distributed and used as a funding point, and e-RUPI is regulated by the government.

E-RUPI vs Digital MoneyDigital currency refers to any electronic payment methods available only. Digital money is not as physical as a dollar bill or a coin. It is calculated and transmitted using computers.E-RUPI is a system based on digital payments while digital currency is the digital currency itself.E-RUPI is a new revolution in the financial market and to grow and maintain this global market we must all embrace a new revolution and need to be renewed through this platform.

Ms. Shreya Baweja
BBA (2nd Year Student)
NICE School of Business Studies