e-rupi: you can now receive government benefits up to Rs 1 lakh via e-RUPI without a/c bank, internet

The Reserve Bank of India (RBI) has increased the maximum amount of e-RUPI from currently Rs 10,000 to Rs 1 lakh. It was further announced that the e-RUPI voucher can be used more than once until the amount is fully refunded. The announcement was made to ensure better delivery of benefits from central and state government schemes. This was announced in the RBI’s Monetary Policy Review here today. Beneficiaries can receive e-RUPI even without having a bank account and also on mobile phones without an Internet connection. In addition, the delivery is contactless.

According to the statement on development and regulatory policies issued by the central bank:
The e-RUPI prepaid digital voucher, developed by the National Payments Corporation of India (NPCI) and launched in August 2021, is a person and purpose specific cashless voucher and can be used by individuals, businesses or governments. e-RUPI operates on the UPI platform and has a cap of Rs 10,000/- per voucher and each voucher can only be used/redeemed once. e-RUPI vouchers are currently widely used for vaccination purposes against COVID-19. There are other use cases that are actively being considered by various state and central government ministries/departments.

To facilitate the digital delivery of various government programs to beneficiaries, it is proposed to increase the cap on the amount of e-RUPI vouchers issued by governments to Rs 1,00,000/- per voucher and allow the use of e-voucher RUPI several times (until the voucher amount is fully used). The necessary instructions to the NPCI will be issued separately.

What is e-Rupi?

e-RUPI is essentially a digital voucher that a beneficiary receives on their mobile phone in the form of an SMS or a QR code. It is a prepaid voucher that he can use at any center that accepts it.

For example, if the government wishes 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 employee will receive an SMS or a QR Code on their feature phone/smartphone. He can go to the specified hospital, benefit from the services and pay via the e-RUPI voucher received on his phone.

It is a unique contactless and cashless payment method that helps individuals redeem the e-RUPI voucher without a card, digital payment app or online banking access.

Advantages of e-RUPI for individuals

e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature compared to other forms of digital payment. It guarantees an easy and contactless two-step exchange process that also does not require the sharing of personal data.

Another advantage is that e-RUPI is also usable on basic telephones and can therefore be used by people who do not have a smartphone or in places without an Internet connection.

e-RUPI should play a major role in strengthening the direct transfer of benefits to individuals from various governments and making it more transparent. Since there is no need to physically issue vouchers, this will also result in cost savings.