e-RUPI:

● Core Function:

○ e-RUPI is a prepaid, digital voucher system. It's designed to provide a secure and

targeted way to deliver benefits and services.

○ It generates a QR code or SMS string that beneficiaries can use to redeem specific

services.

● Key Features:

○ Purpose-Specific: Vouchers are issued for specific purposes, ensuring that funds

are used as intended.

○ Person-Specific: The vouchers are delivered to specific beneficiaries.

○ Cashless and Contactless: It facilitates cashless transactions without the need for

physical cards or digital payment apps.

○ Accessibility: It can be used on basic feature phones, expanding access to those

without smartphones or internet access.

○ Security: It prioritizes the security and privacy of beneficiary data.

● How it Works:

○ Organizations (government or private) issue e-RUPI vouchers through partner

banks.

○ Beneficiaries receive the voucher via SMS or QR code on their mobile phones.

○ They can then redeem the voucher at designated service providers.

● Benefits:

○ Targeted Delivery:

 Ensures that benefits reach the intended recipients

○ Financial Inclusion: 

Extends digital payment access to those without bank

accounts or smartphones.

○ Simplified Transactions: 

Streamlines the payment process for both beneficiaries

and service providers.

● Use Cases:

○ Government welfare programs.

○ Corporate employee benefits.

○ Healthcare services.

○ Educational assistance.

Key Differences from Digital Rupee (CBDC):

● While both are digital, e-RUPI is a voucher system, and the Digital Rupee is a digital form

of currency.

● e-RUPI is a voucher for a specific transaction, the digital rupee is legal tender.

● The Digital Rupee is issued by the RBI, and E-Rupi is facilitated by the NPCI.

I hope this detailed explanation is helpful.