Big update on cashless transaction! RBI increases e-RUPI vouchers limit from Rs 10,000 to Rs 1 lakh

New Delhi: In a move that will make cashless transactions via e-RUPI vouchers more lucrative, the Reserve Bank of India on Thursday raised the digital voucher cap from Rs 10,000 to Rs 1 lakh and has permitted multiple-use of it.

The e-RUPI pre-paid digital voucher developed by the NPCI was launched in August 2021. The single use cashless payment voucher had a cap of Rs 10,000. 

Announcing the Monetary Policy, RBI Governor Shaktikanta Das said, "It is now proposed to increase the cap of e-RUPI vouchers issued by the Central government and State governments from Rs 10,000 to Rs 1,00,000 per voucher and permit such e-RUPI vouchers to be used more than once (until the amount of the voucher is completely redeemed)." 

Das added that this will further facilitate the delivery of various government schemes to the beneficiaries more efficiently.

What is e-RUPI and how it works ?

e-RUPI is a one time contactless, cashless voucher-based mode of payment that helps users redeem the voucher without a card, digital payments app, or internet banking access. However, e-RUPI should not be confused with Digital Currency which the Reserve Bank of India is contemplating. Instead e-RUPI is a person specific, even purpose specific digital voucher.

e-RUPI is basically a digital voucher which a beneficiary gets on his phone in the form of an SMS or QR code.  It is a pre-paid voucher, which he/she can go and redeem it at any centre that accepts its.

If for instance, the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank.  The employee will receive an SMS or a QR Code on his feature phone / smart phone.  He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone.