India is set to launch a new cashless and contactless instrument for digital payment called e-RUPI, further accelerating its shift towards the cashless economy.
This new solution is a QR code or SMS string-based e-Voucher, which will be received on the mobile device of the beneficiaries.
Users will be able to redeem the voucher at the service provider without a card, digital payments app or internet banking access.
The solution has been developed by the National Payments Corporation of India (NPCI) on its (Unified Payment Interface) UPI platform.
NPCI developed the solution in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority.
With e-RUPI, the government expects to ensure the leak-proof delivery of welfare services across the country.
The solution connects the sponsors of the services with the beneficiaries and service providers digitally, eliminating the need for any physical contact.
The payment to the service provider will be processed only after the transaction is completed.
The government plans to leverage the e-Voucher solution for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes.
It will also be used to support the delivery of drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, as well as for fertiliser subsidies, among other things.
Furthermore, this service can be used by the private sector as part of their employee welfare and corporate social responsibility programmes.
In May this year, NPCI partnered with Turkish payment firm PayCore to develop SoftPOS solution for its card network RuPay.
This April, Financial Software and Systems (FSS) tapped NPCI International Payments to expand UPI rails in international markets.