RBI expands scope of e-RUPI digital voucher: Non-banking prepaid payment instruments companies can now issue vouchers

The Reserve Bank of India (RBI) on Thursday said it will enable issuance of e-RUPI vouchers on behalf of individuals. While discussing the outcome of the Monetary Policy Committee meeting today, RBI Governor Shaktikanta Das said that steps would be taken to simplify the process of issuance, redemption and a few aspects of the current framework.  

This measure will make the benefits of e-RUPI digital voucher accessible to a wider set of users and further deepen the penetration of digital payments in the country, said RBI Governor Shaktikanta Das said on Thursday after announcing the repo rate revision, inflation rate at the bi-monthly monetary policy meeting. 

The e-RUPI vouchers are pre-paid digital tools that a beneficiary receives on phone in the form of an SMS or QR code.  The e-RUPI, a digital voucher launched in August 2021, rides on the Unified Payments Interface (UPI) system of National Payments Corporation of India (NPCI).  

Till now, purpose-specific e-RUPI vouchers are issued by 11 banks in partnership with the NPCI. The 11 banks are Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India and Union Bank of India. 

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“At present, purpose-specific vouchers are issued by banks on behalf of central and state governments and to a limited extent on behalf of corporates. Keeping in view the benefits for users and beneficiaries alike, it is proposed to expand the scope and reach of e-RUPI vouchers by (a) permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers and (b) enabling issuance of e-RUPI vouchers on behalf of individuals,” Das said on Thursday.    

“Other aspects like reloading of vouchers, authentication process, issuance limits, etc., will also be modified to facilitate use of e-RUPI vouchers. Separate instructions will be issued shortly,” he added.  

More about e-RUPI 

e-RUPI stands differently from the digital currency that is contemplated by the RBI. 

The voucher is in the form of a pre-paid voucher which can be redeemed at the centers that accept it. 

It is a one-time contactless, cashless voucher-based mode of payment that can be used by beneficiaries to redeem it without a card, digital payments app, or internet banking access. 

The beneficiary need not be required to have a bank account. As it ensures an easy, contactless two-step redemption process that doesn’t need sharing of personal details. 

The best part of e-RUPI is it operates on a basic phone without an internet connection, therefore, has a wider reach. 

Industry reaction

"The issuance of e-Rupee vouchers on behalf of individuals expands the market potential and increases customer engagement. Additionally, the widespread adoption of e-Rupee vouchers promotes digital transactions, boosting the efficiency and speed of payments, thereby enhancing the overall operational efficiency and financial management for businesses in India,” said Akash Sinha, Co-Founder & CEO, Cashfree Payments.

"Till now, the reach of e-RUPI was limited as it could be issued by banks on behalf of Central and State Governments and a few corporates. However, now with non-bank Prepaid Payment Instrument (PPI) issuers being permitted to issue e-RUPI vouchers and e-RUPI vouchers being issued on behalf of individuals, the scope and use-cases pertaining to e-RUPI will expand," said Mandar Agashe, Founder and MD, Sarvatra Technologies.

"e-RUPI has now been formalised as a prepaid instrument, it will facilitate non-bank PPI issuers, individuals, and corporates to utilise it for various programs. It will make the benefits of the e-RUPI accessible to a wider set of users and further deepen the penetration of digital payments. Picture a token delivered in the form of an entitlement, capable of reimbursing bills or covering medical treatments for end users. We believe that e-RUPI can also ensure the desired end use of donations, whether it is toward medical purposes or other forms of assistance for beneficiaries. We are readily awaiting the directions from the regulator to initiate these programs," said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.

"The expansion of e-RUPI vouchers to include non-bank Prepaid Payment Instrument (PPI) issuers and the ability to issue vouchers on behalf of individuals significantly increases the accessibility and usability of this indigenous digital currency. We anticipate a wide range of opportunities and benefits arising from this expansion, benefiting both users and beneficiaries. e-RUPI, as a distinctive digital payment solution, enables convenient and accessible transactions without the need for a bank account," said Rahul Tandon, Chief Product Officer, Safexpay.

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