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  • Piyush Singh

What is e-RUPI, and how it works and flows? A Person and Purpose

What is e-RUPI, and how it works and flows? A Person and Purpose specific digital payments tool by npci. Can be used by people with no bank account, strong use case Direct Benefit Transfer (DBT), Social benefits, and G2P transfers.

- National Payments Corporation of India (NPCI) in association with the Department of Financial Services (dfs), National Health Authority (NHA), and partner banks, has launched an innovative digital solution – ‘e-RUPI’.

- It’s a one-time non-reloadable pre-paid voucher-based payment mechanism, which can be redeemed without a card, digital payments app, or internet banking access, at the merchants accepting e-RUPI.

- e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations or Government via SMS string or QR code

- An e-RUPI beneficiary may not be a bank account holder and can redeem the voucher only at the designated merchant points with specified MCCs (merchant category codes) that identifies a type of merchant in the payments system

- Unused or expired e-RUPI vouchers will be credited back to the sponsor corporate/government account by the issuer

- Acquiring bank to provide the app or capability to the merchant for scanning the QR/SMS string

📈💻 e-RUPI transaction flow:

1. Corporate or government has to reach out to their banks to request for e-RUPI service

2. Share a list of beneficiary names, mobile numbers, amount, and purpose of the voucher with the partner bank

3. Banks will create personalised vouchers with the help of NPCI

4. The vouchers will be shared directly with the beneficiaries or via the corporate

5. Beneficiary shows the voucher QR code or SMS to the authorised merchant. Does not need any mobile application or login etc

6. Merchant scans the QR code or enters the SMS code using merchant POS or application

7. Enters the amount to be debited from the voucher and validates the voucher

8. Beneficiary gets a redemption code that s/he shares with the merchant for redemption

9. Voucher redemption can be tracked by the issuer

💰 Use Cases and Benefits

- If the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank.

- The person will receive an SMS or a QR Code on his feature phone / smart phone. He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone.

- e-RUPI does not require the beneficiary to have a bank account. It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.

- e-RUPI is operable on basic phones also, and hence it can be used by persons who do not own smartphones or in places that lack an internet connection.

And YES! It's not CBDC.

What are your thoughts and experience on e-RUPI, how do you plan to mainstream this and use this in your business, for your employees?

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