India has launched e-RUPEE digital payment instrument which is developed by National Payments Corporation of India (NPCI). This is a voucher-based mode of payment — one-time contactless and cashless.

Each voucher will be confined to a specific individual for a desired purpose. It is delivered electronically to a beneficiary, through SMS or a QR code. It is pre-paid. As such the beneficiary can redeem its value at designated vendors and service providers. The beneficiary will receive intended goods or services in exchange.

e-RUPEE requires only a basic phone. It could be used for specific purpose, and thus avoids diversion of funds. No claims are to be submitted by the service providers, as the payment is instantaneous. It is real-time.

It is piloted for health sector, but could be used across the sectors, say providing scholarships to students, pay for vocational training, provide subsidy, deliver public welfare to targeted groups, reward tax payers, enable visits to heritage sites, for using CSR funds.

e-RUPEE can help in effective targeting of social benefit schemes. Monitoring is possible in real time. It generates data to provide feedback to policy makers, and to take corrective action.

There are challenges in the implementation of e-RUPEE. Privacy is to be ensured. Monitoring and evaluation mechanism is needed.