Soon you can book train
ticket on IRCTC (Indian
Railway Catering and
Tourism Corporation)
through RuPay pre-paid
card. RuPay is India’s own
card payment network just
like Visa and Master Card
and provides an alternative
system for banks to provide
debit card service.
The system has been
developed by National
Payment Corporation Ltd
(NPCL). To make this system
acceptable internationally,
the company is in advance
talks with Discover Financial
Services of US for Western
world and JCB of Japan for
Eastern world.
RuPay is 7th payment
network in the world after
Visa, MasterCard, American
Express, Discover, Diners
Club, and JCB.
On Thursday, President
Pranab Mukeherjee
dedicated the payment
network to the nation.
“An indigenous system like
RuPay will, hopefully, not
only reduce the dependence
on cash and cheque modes
of settlement but will also
make it easier to offer
products based on specific
requirements of diverse
user sets within the
country,” he said, while
adding that India is one of
the few countries in the
world to meet domestically
the need for card payment
system.
Currently over 12 per cent
of GDP worth cash and
coins are in circulation
which is quiet high.
RuPay, like any other debit
card, works on three
channels, ATMs, Point of
Sales (PoS) and online sales
beside Aadhar-based micro
ATM.
So far, 31 scheduled
commercial banks based in
public and private sector, 49
regional rural banks and 175
co-operative have issued
over 2 crore RuPay cards.
This card is accepted at all
the 1.6 lakh ATMs, 95 per
cent of point of sales
terminals (9.45 lakh+) and
most of the online
merchants (about 10,000) in
the country.
All transactions under RuPay
card scheme are processed
within the country and the
transaction cost is
reimbursed in domestic
currency which can save a
lot of foreign currency.
Speaking on the occasion,
Financial Services Secretary
G.S. Sandhu said RuPay
would be available at a cost
which is much less than
those of international cards.
For clearing and settlement
of each transaction, banks
will have to pay 40 per cent
lower fees in RuPay
platform compared to other
international platforms.
Public sector banks have
already installed 25,331
RuPay cards enabled ATMS
and 9,000 more ATMs would
be installed in the current
fiscal, Sandhu said.
A variant of the card called
‘Kisan Card’ is now being
issued by all the public
sector banks in addition to
the mainstream debit card
which has been issued by
banks. Further, a separate
card for payment of milk
purchases has also been
launched.
Benefits
The Indian market offers
huge potential for cards
penetration despite the
challenges. RuPay Cards will
address the needs of Indian
consumers, merchants and
banks. 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.
1. Lower cost and
affordability :
Since the transaction
processing will happen
domestically, it would
lead to lower cost of
clearing and
settlement for each
transaction. This will
make the transaction
cost affordable and
will drive usage of
cards in the industry.
2. Customized product
offering :
RuPay, being a
domestic scheme is
committed towards
development of
customized product
and service offerings
for Indian consumers.
3. Protection of
information related
to Indian consumers :
Transaction and
customer data related
to RuPay card
transactions will reside
in India.
4. Provide electronic
product options to
untapped/unexplored
consumer segment :
There are under-
penetrated/untapped
consumers segments
in rural areas that do
not have access to
banking and financial
services. Right pricing
of RuPay products
would make the RuPay
cards more
economically feasible
for banks to offer to
their customers. In
addition, relevant
product variants would
ensure that banks can
target the hitherto
untapped consumer
segments.
5. Inter-operability
between payment
channels and
products :
RuPay card is uniquely
positioned to offer
complete inter-
operability between
various payments
channels and
products. NPCI
currently offers varied
solutions across
platforms including
ATMs, mobile
technology, cheques
etc and is extremely
well placed in
nurturing RuPay cards
across these
platforms.
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