What is e-RUPI ?
e-RUPI is a digital voucher that is received by the beneficiary on their mobile device in the form of an SMS or QR code. It is a pre-paid voucher that can be redeemed at centers that accept it .
The e₹-R is in the form of a digital token that represents legal tender. It is being issued in the same denominations that paper currency and coins are currently issued. It is being distributed through financial intermediaries, i.e., banks. The e₹-R offers features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks.
e-RUPI is safe and secure where the payment is ensured only after the transaction has been completed.
Since it is pre-paid in nature, you can be assured that the payment will be conducted on time and there will be no requirement of intermediary.
The e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations via SMS or QR code.
This contactless e-RUPI is easy, safe and secure as it keeps the details of the beneficiaries completely confidential
How to use e-RUPI?
To use e-RUPI vouchers, you need to follow these steps:
Visit the participating bank’s official app or website.
1. Register to use the e-rupee wallet.
2. Load money into the e₹-R wallet.
3. Launch the e-Rupee app on your phone.
4. Tap on the Load button to add money to your e-Rupee wallet.
5. Switch between the Notes and Coins tab.
6. Scroll through the notes and coins you want to add.
7. Tap on the Add button to add the selected notes and coins to your e-Rupee wallet.
I hope this helps. Let me know if you have any other questions.
List of banks participating in e RUPI
| Sr. No. | Bank Name | Issuer | Acquirer | Acquiring App / Entity |
|---|---|---|---|---|
| 1 | AU Small Finance Bank | ✔ | NA | |
| 2 | Axis Bank | ✔ | ✔ | BharatPe |
| 3 | Bank of Baroda | ✔ | ✔ | BHIM Baroda Merchant Pay |
| 4 | Bank of India | ✔ | NA | |
| 5 | Bank of Maharashtra | ✔ | NA | |
| 6 | Canara Bank | ✔ | ✔ | Canara eRUPI Acquirer |
| 7 | Central Bank of India | ✔ | NA | |
| 8 | Federal Bank | ✔ | NA | |
| 9 | HDFC Bank | ✔ | ✔ | HDFC Business App & Ezetap |
| 10 | ICICI Bank | ✔ | ✔ | BharatPe and Pine Labs |
| 11 | Indusind Bank | ✔ | NA | |
| 12 | Indian Bank | ✔ | ✔ | IB Corporate Merchant |
| 13 | Indian Overseas Bank | ✔ | NA | |
| 14 | Karnataka Bank | ✔ | NA | |
| 15 | Karur vysya Bank | ✔ | NA | |
| 16 | Kotak Bank | ✔ | NA | |
| 17 | Paytm Payment Banks | ✔ | Paytm Business App | |
| 18 | Punjab National Bank | ✔ | ✔ | PNB Merchant Pay |
| 19 | State Bank of India | ✔ | ✔ | YONO SBI Merchant |
| 20 | UCO Bank | ✔ | ✔ | BHIM UCO UPI |
| 21 | Union Bank of India | ✔ | NA | |
| Total | 20 | 10 | 11 | |
Benefits of e-RUPI :
Cashless and contactless digital payment.
Connects service sponsors and beneficiaries digitally.
Ensures leak-proof delivery of various welfare services.
Supports small businesses in taking direct benefit from a multitude of government schemes.
Fosters financial inclusion in the country.
Ensures that government services reach the last mile beneficiaries without leakage of benefits/funds and in a transparent manner.
Difference between e RUPI & UPI
e-RUPI is a simplified version of today’s physical currency. With e-RUPI, you do not have to give instructions to the bank since the money is transferred directly.
UPI, on the other hand, is a robust platform with a wider range of features and services. In UPI, the bank acts as an intermediary and debits your bank account,
and transfers the money to the recipient’s bank account. While in UPI, you give instructions to your bank to transfer money from your account to the recipient’s bank account
Challenges for e-Rupi
People need to learn , how to use e RUPI a for person to person transfer and Person to merchant transfer
No clarity on dispute management as no third party involved for settlement. What will be the role of bank in case of dispute
Adaptability across merchants is still very low, this will be a bigger challenge
Attraction of app makers to adapt this change
Conclusion :
UPI has first mover advantage over e RUPI. total no of banks who are active with UPI is 445 & e-RUPI is still under trial phase with 20 banks. Time will tell whether the incremental benefits are good enough to attracts people on e RUPI or not.
Please share your view and comment below