PM Modi launches e-RUPI, new digital payment solution

By Leandra Monteiro

India’s Prime Minister Narendra Modi this week launched digital payment solution e-RUPI, a person and purpose specific cashless digital payment solution. Launching the new solution he said, “the move would play a huge role in making DBT (direct benefit transfer) more effective in digital transactions in the country and give a new dimension to digital governance”.

Developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare, and the National Health Authority, the e-RUPI platform is a cashless and contactless digital payment medium, which will be sent to mobile phones of beneficiaries in form of an SMS-string or a QR code.

Sharing his views on the launch, Anand Kumar Bajaj, Founder & CEO, PayNearby said, “This is the next best step to take high end of tech to bottom of pyramid. It will help the Government to dispense the specific policy benefit to an identified user segment without any misuse of the funds or delay. The funds will not need to move around in banks but the beneficiary can directly go to end point to avail the intended benefit.

Beyond a code sending to mobile number of a user, I believe the upgrade can also scan an Aadhaar card at the dispensation counter and identify the user for the respective service. This is the true test of network that has been created at the last mile in India because at PayNearby our merchants will be able to identify the user for right benefit and deliver it in pointed / specific manner. Targeted, transparent and leakage free delivery to the end point is the intention of policy makers and we are happy that PayNearby will be able to enable this objective. The Central Bank Digital Currency movement has already started by India now. While the world is talking of Central Bank Digital Currency, India has already launched it today.”

Avinash Shekhar, Co-CEO of ZebPay shared, “We are glad to see e-RUPI which is a great way to implement person and purpose specific digital transactions. We are also looking forward to seeing the features of central bank digital currencies and how they will work. These are great steps towards forming a complete digital economy that have their own unique roles. We believe crypto assets, along with these innovations like e-RUPI and digital currencies, can co-exist in the digital Indian economy.’’

The people-specific and purpose-specific payment solution will primarily function like a prepaid gift-voucher that will be redeemable at specific accepting centers without any credit or debit card, a mobile app or internet banking.

In a statement, the government had said that e-Rupi can be used for delivering services under schemes meant for providing “medicinal drugs and nutritional support under the mother and child welfare schemes, TB eradication programmes, drugs and diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc”. The best benefit of e-RUPI is that money can be used only for the purpose for which it is sent.