Explained: What is e-RUPI and how does it work?

SUMMARY

With the government developing a central bank digital currency, the launch of e-RUPI could potentially provide the necessary digital payments infrastructure. More banks may provide the facility soon.

By CNBCTV18.comAug 2, 2021 3:49:22 PM IST (Published)

Prime Minister Narendra Modi will launch digital payments solution e-RUPI via video conferencing today.

e-RUPI is a person and purpose-specific digital payments solution, according to an official statement.

The platform has been developed by the National Payments Corporation of India in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and the National Health Authority (NHA).

It is a QR code or SMS string-based e-voucher, which is delivered on the mobile phones of the beneficiaries. As it is prepaid, e-RUPI assures timely payment to the service provider without the involvement of any intermediary, says the PMO.

The digital platform will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.