What is e-RUPI or e-Rupee? How Does It Work? [Full Explanation]


What is e-RUPI or e-Rupee and How Does It Work?

e-RUPI or e-Rupee is a revolutionary initiative by Indian government to ensure a leak-proof and cashless digital payment solution which will be operated based on e-vouchers.

On Monday, August 2 Prime Minister Narendra Modi launched e-RUPI digital payment system via video conferencing. It has been developed by the National Payments Corporation of India in partnership with the department of financial services, health ministry and the National Health Authority.

What is e-RUPI?

e-RUPI is an electronic voucher-based digital payment system which is cashless and contactless launched by Indian government to give a further boost to the digital payment system in the country.

The great thing is no digital payment app is required to use e-RUPI vouchers. Even if you do not have a smartphone or a any bank account, you can also use e-RUPI vouchers. It is a great initiative from Indian government.

e-RUPI is built on the Unified Payment Interface (UPI) platform and developed by a strong team- the National Payments Corporation of India (NPCI) in association with the Department of Financial Services (DFS), the National Health Authority (NHA) and the Union Health Ministry (UHM).

How does e-RUPI work?

The great beneficiary we can enjoy from e-RUPI- It is a cashless and contactless method. A QR code or SMS string-based e-voucher will be delivered to the mobile of the users who will be able to redeem the voucher without using a card, digital payments app, or internet banking access.

Without physical interface e-RUPI makes a connection with the sponsors of the services, the beneficiaries and service providers in a digital way. It also gives a ensurity to the users that payment is given to the service provider only after the transaction is fully completed.

e-RUPI is a prepaid system in nature. So it will assure the payment on time to the service provider without the involvement of any middleman.

How to use e-RUPI vouchers?

e-Rupi vouchers are prepaid in nature. It is also like e-gift cards. The code of the cards can be shared either via SMS or the other way QR code can be shared. In nature these e-vouchers are person and purpose-specific. As an example, if you have an e-RUPI voucher for Covid-19 vaccine, then it can be used for vaccines only.

Where can you use e-RUPI?

As a part of the Indian Government's Digital India venture, this digital payment solution will be very helpful to ensure a leak-proof delivery of welfare services.

It will be highly used to deliver services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc. 

It can be used in the private sector as part of their employee welfare and different corporate social responsibility programmes.

Who will benefit from e-RUPI?

e-Rupi is a great initiative in Indian digital era. By this digital payment system many people will benefit from the country. It will be very helpful for govt. because then can provide drugs and nutritional support by different welfare schemes to the Indian people. Even the private sector can also leverage these digital vouchers as part of their employee welfare and other corporate social responsibility programmes.

And after the boosting of this system many people from different sectors can take the advantage of this cashless payment system.

How to redeem e-vouchers of e-Rupi?

For redeeming e-vouchers no card or hard copy of the voucher is needed. The QR code which is received via message is enough to redeem it.

Which banks live with e-RUPI?

As stated by the National Health Authority, eight banks are already involved with e-RUPI. The banks are:

  • State Bank of India
  • HDFC
  • Axis
  • Punjab National Bank
  • Bank of Baroda
  • Canara Bank
  • IndusInd Bank
  • ICICI Bank

Why is e-RUPI voucher different from other online payment applications?

E-RUPI is not any online or offline platform. It is simply a voucher for specific services. E-RUPI vouchers are for specific people for specific purposes

The main difference from other payment applications- if you do not have a smartphone or a digital payment app or any bank account can be benefited by using these vouchers.

These vouchers will be used mostly for health-related payments and schemes.

The private corporations can also use these vouchers for their employees beneficiary.

If you purchase the vouchers and give them to others for redemption, you can track the utilization of the vouchers.

In this system the beneficiaries won't have to share their personal details which will be very helpful for Privacy matters.

These reasons make e-RUPI different from other online payment systems. 

PM Modi wants to make a digital country. e-Rupi is one of the revolutionary initiatives in the digitalization of India. Many people can take advantage of this digital payment. 


  1. How do you pay to the bank for buying e-voucher...
    also, if the e-voucher is " person specific" how does an user of "e-voucher" avoid sharing his/ her personal details....can some one throw some light on its usability in buying groceries,clothings or in Hotels/Retaurants

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