What is e-RUPI and how can it plug leakages in direct benefits transfer?

 The govt recently launched e-RUPI vouchers to transfer the benefits of its welfare programs. A person- and purpose-specific digital payment system, it does not require beneficiaries to a smartphone

With the JAM trinity of Jan Dhan bank accounts linked with Aadhaar and mobile numbers, the government has changed how India delivers welfare benefits to the poor. The digitization of India’s welfare drive was done to ensure there was no corruption and leakages in schemes important in ensuring that no Indian goes to sleep hungry.

And now, with e-RUPI, India is trying to better its direct benefit transfers (DBT) for those still without bank accounts.

Blending the government’s focus on fintech and penchant for techno-solutionism, e-RUPI will be like the gift vouchers you get after making payments through platforms like Google Play.

These vouchers will be redeemable at a specific store, with certain terms and conditions.

To put it simply, these will be prepaid gift vouchers that will be delivered to the mobile phones of the beneficiaries of welfare schemes in an SMS string or a QR code.

These vouchers will be redeemable at specific accepting centers like ration shops or shops selling LPG cylinders.

In a statement, the Prime Minister’s Office (PMO) said e-RUPI was expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services.

Being prepaid in nature, it would assure timely payment to the service provider without the involvement of any intermediary, the statement added.