India has introduced electronic voucher-based payments called e-Rupi in July 2021. The purpose was to reach the targeted benefits to the citizens in a leak-proof way. The vouchers or coupons electronically were delivered to feature phones. These vouchers had associated value and purpose. These could not be encashed for anything else. The benefits were to be availed of at a service provider or a merchant who was enabled to accept them.

Sometimes instead of a message on feature phones, the vouchers were delivered as QR codes. It was not necessary for a beneficiary to hold a bank account.

These vouchers were used to distribute medical aid and for PDS. Apart from government, the corporates can also give such vouchers to their employees.

To begin with, e-Rupee vouchers had constraints. There was a ceiling on the maximum value — Rs.10000. Secondly, they were for a single use, and lapsed even when partially redeemed. Recently these conditions have been relaxed. The ceiling on value has been increased to Rs.1 lac, and they could be used multiple times till the entire value gets exhausted or till their validity. It thus becomes a pre-paid instrument. It is more economical than prepaid cards.

Banks could be the authorised issuers of these vouchers. Government too can issue such vouchers.