What is e-RUPI Digital Payment Solution Don't Know then Read.

On 2nd August 2021, Hon’ble Prime Minister Shri Narendra Modi launched the digital payment solution e-RUPI - a cashless and contactless instrument for digital payment.

What is digital e-RUPI in 2023?

On August 2, 2021, Indian Prime Minister Narendra Modi introduced the e-RUPI digital payment system. Direct benefit transfer (DBT) will be significantly more successful thanks to the cashless and contactless e-RUPI digital payment instrument. 

This will provide digital governance with a fresh perspective. This program connects people's lives in India through technology and digital commerce.

The beneficiary receives an e-RUPI digital voucher in the form of an SMS or QR code on his mobile device.

Beneficiaries can redeem it via a one-time contactless, cashless voucher-based payment method without a card, a digital wallet, or online banking access.

e-RUPI differs from the digital money that the Reserve Bank of India is considering.

What is e-RUPI Digital payment.
What is e-RUPI 

It is not needed for the recipient to have an account. Because it guarantees a simple, contactless two-step redemption process that does not need the disclosure of personal information.

The fact that e-RUPI works on a basic phone without an internet connection is its strongest feature.

What is e-RUPI in simple words?

e-RUPI is essentially a digital voucher that a recipient receives by SMS or a QR code on his phone. It is a pre-paid coupon that may be used at any location that takes it.

The government can use the banks to create an e-RUPI voucher for the amount. On his feature phone, the employee will get an SMS or a QR Code. He may travel to the designated hospital, get the offered services, and pay using the e-RUPI voucher he has received on his phone.

As a result, e-RUPI is a one-time contactless, cashless voucher-based payment method that enables customers to use their vouchers without a card, a digital wallet, or online banking.

The Reserve Bank of India is considering a digital currency. e-RUPI, on the other hand, is a digital voucher that is person and even purpose-specific.


For e-RUPI transactions, the National Payment Corporation of India (NPCI) has collaborated with 11 banks. Here are several examples:

  • Axis Bank
  • Canara Bank 
  • Canara Bank 
  • ICICI Bank
  • HDFC Bank 
  • IndusInd Bank
  • Kotak Mahindra
  • National Bank of Punjab
  • State Bank and Union Bank

How to buy e-RUPI?

The four banks that the RBI have granted licenses to provide E-RUPI for purchase. They are IDFC First Bank, Yes Bank, ICICI Bank, and State Bank of India.

If a business or mall has a QR code and accepts E-RUPI, you can use the retail E-RUPI, or CBDC-R, to make purchases there. The digital currency may be kept in your digital wallet and used for online purchases.

What is difference between UPI and e RUPI?

UPI is a real-time payment system developed by the National Payments Corporation of India that facilitates bank transactions by instantly transferring funds between two accounts on a mobile platform. It allows users to send and receive money, check account balances, and view transaction history through a mobile application.

e-RUP is a new version of UPI that allows users to make payments using RuPay debit cards and credit cards in addition to bank accounts. This means that users can now use their RuPay cards to make payments on UPI-enabled platforms, making the payment process more convenient and accessible to a wider range of people. Here are the Top 5 Differences between UPI and e RUPI ;

  1. Security: UPI is considered a secure payment system as it uses two-factor authentication to ensure the safety of transactions. e-RUPI also follows the same security protocols as UPI to secure transactions made using RuPay cards.
  2. Instant Transfer: Both UPI and e-RUPI allow for instant transfer of funds between bank accounts or RuPay cards, making it a convenient option for users.
  3. Convenience: UPI and e-RUPI both offer a high level of convenience as they can be accessed through a mobile application, eliminating the need to visit a bank branch or ATM for transactions.
  4. Interoperability: UPI enables transactions between any two bank accounts, regardless of the bank. e-RUPI extends this interoperability to RuPay debit and credit cards as well.
  5. Cost: Transactions made through UPI and e-RUPI are typically free or have low charges, making them a cost-effective option for users.

In simple words, UPI is a digital payment system that enables instant transfer of money between any two bank accounts using a mobile application. e-RUPI is an extension of UPI that allows users to make payments using RuPay debit cards and credit cards in addition to bank accounts.

Where is e-RUPI now applicable?

e-user RUPI's base will like to expand in the coming years as MSMEs use it for Business (B2B) transactions and also the private sector uses it to provide employee perks.


According to a poll, 85% of Indian rural residents use cell phones. The 2019 research estimates that 277 million mobile phone users reside in rural areas, whereas 227 million users reside in urban areas. By 2023, it's anticipated that everyone will be familiar with e-RUPI. E-rupee trading just requires a cellphone number. There is no need to give your bank account information or Aadhaar number separately.

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