It is expected to be a revolutionary initiative to ensure a leak-proof delivery of welfare services

e-RUPI, a person and purpose specific digital payment solution which can be used for welfare services, will be launched by Prime Minister Narendra Modi on Monday.

A cashless and contactless instrument for digital payment, e-RUPI is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries.

This is one of the several programmes launched in recent years to ensure that the benefits reach its intended beneficiaries in a targeted and leak-proof manner, with limited touch points between the government and the beneficiary.

According to the Prime Minister's Office (PMO), the users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider.

It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.

How e-RUPI works

e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary.

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 & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, and fertilizer subsidies.

Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes, the PMO said.