President of India launched Indigenous Card payment System Rupay
President of India on 8 May 2014 launched Rupay, Indigenous Card payment System at Rashtrapati Bhawan in Delhi.
President of India on 8 May 2014 launched Rupay, Indigenous Card payment System at Rashtrapati Bhawan in Delhi. RuPay is the coinage of two terms Rupee and Payment.
Reserve Bank of India (RBI) envisioned the need for such an indigenously managed service in 2005. National Payments Corporation of India (NPCL) developed the Rupay platform.
Rupay is the seventh card payment system in the world after Visa, MasterCard, American Express, Discover, Diners Club, and JCB.
Features of RuPay
It can be used at ATMs, Points of sale and also for online purchases.
Rupay card will be use with a PIN. It is possible to withdraw 25000 rupees using the card. Up to 50000 rupees can be spent at Point of sale terminals.
The variant of Rupay card is Kisan Card which is issued by 43 Public Sector Banks (PSBs).
RuPay Scheme provide flexibility to card issuing banks to issue special purpose cards like Kisan Cards, Milk Procurement Cards, Grain Procurement Cards and Financial Inclusion Cards.
The user of Rupay will need to pay at atleast 40 percent fewer charges for each transaction clearing and settlements when compared to other international platforms.
Expansion of RuPay
The total number of banks issuing RuPay cards is now more than 250 and the card base as on April 2014 was at 20 million plus. More than 150 cooperative banks and the regional rural banks (RRBs) have also issued RuPay ATM card.
Government sector banks already set up 25331 ATMs in which Rupay can be used. In the present financial year 2014-15, another 9000 ATMs will be set up. These cards can be used in more than 1.6 lakh ATMs and 95% of POS terminals and almost all e-com merchants.
Currently, over 12 per cent of GDP worth cash and coins are in circulation which is quiet high.
Benefits of RuPay Card
The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience.
Lower cost and affordability
Customized product offering
Protection of information related to Indian consumers
Transaction and customer data related to RuPay card transactions will reside in India
Provide electronic product options to untapped/unexplored consumer segment
Inter-operability between payment channels and products
Rupay card also offer facilities such as personal accident insurance and permanent disability cover to the card holder.
Soon, it will be possible to use Rupay in foreign countries as the company is looking ahead with Discover Financial Services of US for Western world and JCB of Japan for Eastern world.
About Other Cards
It is an American multinational financial services corporation headquartered at New York, United States. It was founded in December 1966. Throughout the world, principal business of MasterCard is to process payments between the banks of merchants and the card issuing banks or credit unions of the purchasers.
It is an American multinational financial services corporation headquartered in Foster City, California, United States. It was founded in 1958.
American Express Card
American Express Company, also known as AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York, United States.
The Discover Card is a credit card which is issued primarily in the United States. It was announced by Sears in 1985.
Diners Club is a charge card company formed in 1950. It became the first independent credit card company in the world.
Japan Credit Bureau
Japan Credit Bureau (JCB) is a credit card company based in Tokyo, Japan. It is accepted at JCB merchants, Discover Network Merchants in the United States, and Union Pay Merchants in China. It was founded in 1961.