3 months ago 281

On 2nd August 2021, Honorable Prime Minister of India, Narendra Modi, launched a new electronic payment system named ‘ERUPI DIGITAL PAYMENT SYSTEM.’ This new system is promised to bring changes in E-payments. Let’s get in detail about this new initiative and know its features and benefits.

ERUPI Digital Payment System

What is ERUPI Digital Payment System?

In this world of digitalization, people are getting cashless. Almost everyone is using e payment apps these days for making daily transactions directly from their bank accounts. Digital payments are simple, quick and, don’t require any physical handling of cash. To make it even simpler, this new contactless payment system has been launched. ERUPI is an initiative of the Indian government to bring a prepaid voucher system as an addition to the Digital India campaign. Its use is entirely cashless and contactless. This system has been developed by the National Payments Corporation of India (NPCI), which is responsible for managing e-transactions. Other government bodies like the Ministry of Health & Family Welfare, National Health Authority, and Department of Financial Services have also collaborated for the venture. 

This payment system has been developed to make the e-transactions smooth and simplified. ERUPI does not require any debit or credit card or any digital payments app. 

These vouchers are directly transferable to the beneficiary’s mobile number. Vouchers can be used for services like health or can be gifted.

The primary purpose of these vouchers is to deliver government benefits to the general public.

Benefits of ERUPI Digital Payment System

Here are the amazing benefits of the ERUPI Digital Payment System:- 

  • Being contactless and cashless, it does not require the sponsor (issuer) of a voucher and the beneficiary to interact physically. 
  • Simple tap-to-pay prepaid vouchers make it very easy to use, even for the illiterate population.
  • ERUPI payment system is a person-specific payment system, so; only the true beneficiary can use it. The voucher amount too can be used only for the purpose it was issued. This will help the government provide service benefits like health care to the public in a better way.
  • In the ERUPI payment system, the security aspect is more prominent. It assures a leakproof payment without the threat of any fraud. 
  • The service provider will only get money when service is duly provided to the beneficiary.
  • Not only the public sector but private organizations can also use these vouchers for employee welfare programs.
  • ERUPI payments do not require any service provider or intermediary for completing the transactions.
  • An E-voucher will be completely traceable. Government can trace every single Voucher and know about its usage.
  •  These vouchers are non-transferrable. Hence only the original user can be able to avail of its benefit.
  • By eliminating the middleman, there will be more transparency in the system, unlike the previously used methods where intermediaries exploited familiar people.

How Does ERUPI Digital Payment System Works?

The payments with this platform work in two ways:-

  • QR Code
  • E-vouchers based on SMS-String

The issuer can send a link to the beneficiary for the QR code of the Voucher via SMS. A beneficiary can click on the link and get the redeemable Voucher.

It is beneficial for delivering the service benefits to the beneficiaries by connecting them with the sponsor of the service without any physical contact. The best part is that it is a purpose-specific voucher. It means one can use the Voucher only for the purpose it was issued. For example, if the beneficiary got a voucher from the Department of health and family welfare for vaccination, that particular Voucher can only be used for that purpose. A beneficiary cannot use that Voucher for any other purpose.

Some banks are issuing vouchers as well you can check here. One who wishes to create a voucher to give it to someone can get it from the website. The website will be available soon. You can check the list of banks accepting issuers and acquirers of the ERUPI system below.

Banks Accepting ERUPI

Secure Payments with ERUPI

We all are using digital methods for making our day-to-day payments. Some carry a card, or some just using Unified payment interfaces. But there is a constant fear of stuck payments. Money gets deducted but didn’t receive by the recipient. Or a threat of fraud in digital payment is always following us. This is not the same with ERUPI. It ensures a leakproof payment from the sponsor of the Voucher to the beneficiary and from the beneficiary to the service provider. 

As it is already prepaid, it promises hassle-free payment to the service provider without the involvement of any other intermediary. This system also ensures that the payment is made to the service provider only after the transaction is done. This means the beneficiary had received the service he is paying for.

This is a person-specific payment method. The Voucher can be used only by the person to whom the Voucher was issued. The identification of the beneficiary is made with the help of a mobile number. The Voucher can only be redeemed from the beneficiary’s mobile number. This makes sure that the benefit is delivered to the right person. This makes it a more secure way of payment too.


This new method can revolutionaries electronic payments system. This system can be advantageous for the government to directly deliver various welfare schemes to the beneficiaries. It will ultimately lead to the proper use of government welfare schemes as there will be no middlemen, and the benefit amount will be used for the right and specified purpose only and won’t be misused. This can be an instrumental initiative for the common public as it is supposed to deliver the benefits of various government schemes efficiently. 

The post ERUPI DIGITAL – SIMPLE, SMOOTH, EASY PAYMENT SYSTEM appeared first on Dazzling Facts.

Read Entire Article