On 24 September 2025, Bank of Baroda launched e-RUPI P2P digital gifting on its UPI app. The feature lets users send prepaid digital vouchers for a specific purpose. A voucher sent for education, healthcare, food or another designated purpose can be redeemed only for that purpose at participating merchants. This makes it different from a normal cash gift because the spending use is built into the voucher itself.

The e-RUPI system is a one-time, cashless and contactless prepaid digital voucher. It can be redeemed without a card, a digital payments app or internet banking. Issuer banks create e-RUPI vouchers on the NPCI framework for person-specific and purpose-specific use. Bank of Baroda's P2P gifting feature extends e-RUPI from government welfare use cases toward consumer-level digital gifting and shows how targeted, cashless payments can reduce misuse of funds.

In prelims, likely questions can focus on the nature of e-RUPI, its P2P use on a UPI app and the purpose-specific character of prepaid vouchers. In mains, it can be used as an example of digital economy governance and payment models that place guardrails on spending. It should therefore be studied not only as banking news, but also as a practical example of payment infrastructure. For static GK, study UPI, the NPCI framework and the working of digital vouchers together.