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Date: 03 August 2021 Tags: Miscellaneous


Prime Minister Modi will be launching an electronic voucher based digital payment system known as e-RUPI.



E-RUPI will be the first step towards having a government-backed digital currency in the country.



  • The e-RUPI platform has been developed by the National Payments Corporation of India (NPCI) along with Ministry of Health and Family Welfare, department of financial services and the National Health Authority.

  • E-RUPI will be a contactless and cashless digital payments medium which will be sent to beneficiaries’ mobile phone.

  • It will be in form of QR code or SMS string code that the beneficiary will have to use as a redeemable prepaid gift voucher.

  • The currency does not need a debit card, credit card, internet or any mobile app for redemption. It can be availed in specific centres. There will be no physical interface between beneficiaries and service providers.


Issuing vouchers

  • The bank will be issuing entities and the system has been developed by NPCI using its UPI platform.

  • The beneficiary will be identified using their mobile numbers and voucher that the bank will allocate.

  • For getting the voucher, the purpose of transaction and details of beneficiaries has to be given to the partnering bank. The voucher should only be delivered to that person


Uses for e-RUPI

  • The government has identified several sectors where this payment method will ensure leak-proof delivery of welfare services.

  • These include TB eradication programmes, nutritional support under Mother and Child welfare scheme, fertilizer subsidies, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana etc.



  • This can be the first step towards developing a central bank digital currency, which can possibly reduce cash transactions in future.

  • The e-RUPI is not exactly virtual currency as it is backed by underlying rupee. It is nearer to a voucher-based payment system.