All hail, for India’s new digital payment solution introduced by Prime Minister Narendra Modi, called e-RUPI, an electronic voucher based on digital payments is finally here.

Through joint collaboration of the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority, it has been developed on the UPI platform of the National Payments Corporation of India.

Upon being a cashless and contactless digital payment method, it is bestowed with a vision of good governance.

With it comes a QR-code or SMS-based string that is delivered to the beneficiaries of a mobile phone.

It is most likely that of a prepaid gift voucher readily redeemable at specific accepting centers, irrespective of credit or debit card, mobile, or net banking. It brings together sponsor of service sponsors with beneficiaries and service providers in a digital manner, eliminating the need for a physical interface.

The PM tweeted that, “our government is using technology for poor’s development. E-RUPI is person and purpose specific”.

Along the line, it also ensures that payments are done no sooner than the transactions pertaining to the service provider are completed. Additionally, it also promises that payments are done in a timely manner.

Since it ensures that welfare services can be delivered in a secure manner, it can be used for schemes entailing provisions of drugs and nutritional support under Mother and Child welfare schemes, TB eradication programs, drugs and diagnostic programs under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc.

These digital vouchers can be used by the private sector as part of employee welfare and corporate social responsibility programs.

On the other hand, the government has assured that private sectors can also utilize these digital vouchers under their employee welfare and corporate social welfare programs.

Any corporate or government agency will have to contact one of the partner banks, which can be both private and public-sector lenders, with the names of specific individuals and the purpose for which payments are required.

The beneficiaries will be identified by their mobile phone numbers, and a voucher issued by a bank to a service provider in the name of a certain individual will only be sent to that individual.

The e-RUPI futuristic reform was launched at the same time as India's Amrit Mahotsav, says the PM.

The digital voucher could apparently shed light on the gaps in digital payments infrastructure, essential for the success of future digital currencies, as the government is already working on developing a central bank digital currency.

He also denoted that, “e-RUPI will help in assuring targeted, transparent and leakage-free delivery and the e-RUPI voucher will play a major role in strengthening DBT scheme”.

Speaking of digital currencies, most recently the Reserve Bank of India announced that its brewing efforts on an implementation strategy for the central bank digital currency (CBDC) in a phased manner. The CBDCs are versions of digital currencies of the country's existing fiat currency, such as the rupee that are issued by the central bank.