Voucher-based e-RUPI, the latest addition to India’s growing catalogue of digital-payment solutions, will help create a transparent and efficient welfare delivery mechanism, prime minister Narendra Modi said in his address during the system’s launch.
The purpose-specific digital payment solution, developed by the National Payments Corporation of India in partnership with several government agencies, over its interoperable Unified Payments Interface architecture will first be launched for Covid vaccine dispensation at private hospitals, the prime minister said.
He added that the use cases for e-RUPI in subsequent years can be expanded from the delivery of various welfare subsidies linked to education, ration, healthcare, and fertilisers and relief efforts during natural calamities by different government, non-profit and corporate entities. It can also help in donations and scholarship programs for underprivileged sections of the society.
“The launch of e-RUPI for digital transactions and Direct Benefit Transfers is a big step toward ensuring a more effective, transparent and leakage-free welfare delivery system in India,” the prime minister said. “With this system, any government or non-government agency can avoid the use of cash to create a purpose specific voucher to intended beneficiaries. This will ensure that the funds will be utilised for its original purpose.”
The payment system has been created in association with the Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority. In essence, e-RUPI is a digital payments mode in the form of SMS strings or a Quick Response code delivered directly to beneficiaries of the intended welfare scheme without any intermediary network. The pilot for e-RUPI will test its applications for free vaccine delivery, with the broad scope also set to soon cover NHA’s PMJAY payouts and other digitised stampbased use cases for food delivery, fertilisers, healthcare benefits, scholarships, and ration payments. “During the pandemic, India has set an example with its Direct Benefit Transfer architecture on effective delivery of benefits to the poor, when many countries struggled to find a solution,” Modi said.