Important Relationship Between e-Rupi And Digital Currency You Should Know

The launch of e-Rupi, which is a cashless instrument used for digital payment has boosted the digital currency industry. When the SMS string based or the QR code based e-voucher is generated it will reach the mobile of the beneficiaries. No physical intermediaries will be involved like banks. Let us know more about this e-Rupi digital payment.

e-Rupi Digital Payment

As an option for digital payment in India, the Government of India has launched a digital payment system that is based on an electronic voucher on 2 August 2021. On 2nd August at 4.30 via video conference, this new initiative was launched by Prime Minister Narendra Modi. Some government agencies and higher institutions of India like the Department of Financial Service, National Payment Corporation of India (NPCI), National Health Authority, and Ministry of Health and Family Welfare have jointly designed this app. While launching the e-Rupi app, Narendra Modi said, 

“Today, the country is giving a new dimension to digital governance. e-RUPI will play a great role in strengthening DBT.”

He further added that, 

“e-RUPI vouchers are purpose-specific. It will ensure that the benefits of the voucher are availed for the service it is meant for. e-RUPI voucher is going to play a huge role in making DBT more effective in digital transactions in the country. This will help everyone in Targeted, Transparent and Leakage Free Delivery.”

This digital payment app is thought to be very reliable and good. Users using this application can transfer their money securely from one account to another through the payment form. With this app that is launched with the name “e-Rupi” the user can make digital payments sitting in any part of the country. The main aim of this app is to promote digital payment in India. 

How Does e-Rupi Work?

e-Rupi has been designed as a cashless application. The help of a QR Code or SMS string will be considered to send this app to the mobile of the user in India. e-Rupi app download can be done directly by the beneficiaries. Users can use this prepaid gift e-voucher application without any debit or credit card, internet banking, or mobile app. 

The sponsors of e-Rupi will not require to physically interface with anyone to deliver this application to individual users in the country. It can be used as a prepaid gift voucher. Service providers and beneficiaries will be linked through this e-Rupi application. 

How Will These e-Vouchers Be Issued?

This system of issuing e-Voucher has been prepared by the NPCI on their UPI channel where many banks have been linked. The financial institutions that will be linked made a major part of it as the issuing institution. Nutritional and medicines assistance will be offered under the schemes of maternal and child welfare, and TB eradication programs so that the help provided reaches the beneficiary directly via the e-Rupi system.

In this system, identification of the beneficiary will be done through his mobile number. The e-Rupi voucher that is issued by this service can only be utilized by the person who has the allocation of the e-voucher. 

Does e-Rupi Lay Foundation For RBI’s Digital Currency?

There are many questions that revolve around the launch of e-Rupi.  Interestingly, the launch came a few days after the deputy governor of the RBI, R Rabi Shakar asserted that the regulators were working on an implementation strategy of the phase of the CBDC (Central Bank Digital Currency), promoting buzz of ties with the CBDC. 

The main use of this application is to offer leak proof welfare service using the one time payment system. This technology eliminates any intermediaries by making sure that the sponsor of the service connects to the beneficiaries directly. 

This platform also does not need the beneficiary to have an account in the bank which makes this more preferable than other digital payment platforms. 

The former deputy governor of RBI, R Gandhi told in an interview that CBDC and e-Rupi are different concepts. He said, 

“e-RUPI is not CBDC, both are completely different concepts. Here money is not being created, money is already available with the benefit provider which it wants to transfer to the platform for the beneficiary. The key difference is here there is no money created, whereas in CBDC there will be money creation.”

On the other hand, the e-Rupi is the same as a digital gift card that replaces physical vouchers. It can be utilized by government institutions, private companies, and other service providers to offer benefits with the help of their partner banks. 

Kashif Raza who is the co-founder of India’s only regulatory media platform said, 

“When our employers want to extend us tax-free benefits, they provide us with physical vouchers to spend on buying essentials. The government is now doing this similar thing at a larger scale.”

He further says that the complete process of CBDC makes it different from e-Rupi, there still are some similarities. According to him, both the products cannot be compared but the only commonality between cryptocurrency and e-Rupi is that both do not depend on intermediaries. The transfer of money takes place directly to whoever it is made for. 


Despite all these, the e-Rupi platform is expected to simplify the whole process of providing subsidy benefits and vouchers and is predicted to witness a wider acceptance by the private players and government bodies as well. 

Frequently Asked Question On e-Rupi

1. What is the e-Rupi?

e-Rupi is a cashless instrument used for digital payment that has boosted the digital currency industry. When the SMS string based or the QR code based e-voucher is generated it will reach the mobile of the beneficiaries.

2. Is e-RUPI a Cryptocurrency?

e-RUPI is a digital payment system that has been designed by the NPCI (National Payments Corporation of India) on the UPI (Unified Payments Interface) platform. The users of this can use this one-time payment system to get access to a service or product without the use of a card, digital wallet, or net banking. It has no similarities with cryptocurrency except the fact that both do not require any intermediary.

3. Who can use e-Rupi?

The e-Rupi voucher that is issued by this service can only be utilized by the person who has the allocation of the e-voucher.

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