- RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version of credit/debit card. It is very similar to international cards such as Visa/Master.
- Government has instructed state owned banks to issue RuPay debit cards to their customers. This looks like a clear indication to promote these cards
- National Payments Corporation of India (NPCI) initiated the launch of RuPay card in India. It was done with the intention of integration of payment systems in the country. It has also tied up with Discover Financial Services firm for promoting this.
- It was created to fulfil the Reserve Bank of India’s desire to have a domestic, open loop, and multilateral system of payments in India. RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa in India.
- NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.
How does RuPay Card works?
- RuPay debit cards are similar any other debit cards that you might hold now.
- The card can be accessed in the 1.45 lakh ATMs and 8.75 lakh POS terminals across the country. It will also be accepted on 10,000 e-commerce websites. All major public sector banks, including SBI, have started issuing these cards to all their customers.
- The card also comes with a high end technology chip named EMV (Europay, Master Card and Visa) especially for high end transactions. It also has an embedded micro processor circuit with information about the card holder.
How is it different from Master/Visa Card?
- The first major difference is the RuPay is India’s own domestic card with its own payment gateway.
- Since every transaction through RuPay will take place within India, the banks will have to pay less service charge to the payment gateway as compared to Visa, MasterCard and others. For e.g. If a person does a transaction of say Rs. 2,000 then banks will have to pay around Rs.. 2.50 when RuPay is used whereas for the same transaction amount, Visa or Mastercard will charge Rs. 3.25.
- Technically , transactions done through international cards is processed in foreign country which involves higher charge which helps in generating profit for Visa/MasterCard whereas RuPay transactions would happen domestically so charge would be less.
- It is a domestic product with less transaction costs compared to visa debit card which has processing in foreign countries.
- In case of international cards banks have to pay entry fee to be a part of their network which is not the case with RuPay card i.e. no joining fee for the banks.
Other Features of RuPay Card
- RuPay also provides a unified “Kisan Card”, issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and PoS terminals.
- RuPay cards got a major boost through the Pradhan Mantri Jan Dhan Yojana as RuPay cards were issued to all Jan Dhan accounts. In spite of the critics saying most accounts are dormant, RuPay cards are now widely used by Jan Dhan Card holders.
- PUNGRAIN (Punjab Grains Procurement Corporation Ltd), pays commission agents through the RuPay Debit Card, and developed a commission agents network called the Kisan Arhtia Information and Remittance Online Network (KAIRON) with the help of the National Payments Corporation of India.
- Kotak Mahindra Bank in partnership with RuPay rolled out an initiative for financial inclusion, where the dairy farmers across 75 cooperative societies of AMUL in regions of Burdwan and Hooghly of West Bengal will be able to get their payments directly into their account on the same day of sale of milk.
- The same model is planned to be adopted in the state of Gujarat where 1200 cooperative societies comprising over 300,000 dairy farmers will be the part of the programme.
Why Kirishi Bhagya In India, it is estimated that about 6, 000 million tons of top soil are lost annually along with valuable plant nutrients. This along with inappropriate nutrient management practices ...READ MORE
As per the latest assessment (Year-2011) of Dynamic Ground Water Resources, carried out jointly by Central Ground Water Board (CGWB) and the State Governments, out of 6607 assessment units (Blocks/ ...READ MORE
The Union government has ordered banks to use indelible ink on those swapping scrapped notes. The Mysore Paints and Varnish Ltd (MPVL), the only company authorised to manufacture the substance in ...READ MORE
The Karnataka state has seen 144 acid attack victims since 2003-04. A large number have lost (some partially) their sight and are badly scarred. A majority of the victims are ...READ MORE
The fire that broke out in the Kappatagudda foothills between Bidnal and Virapapur Lambani tandas on 3rd March night, has been completely doused. Fire and Emergency Services personnel, police, Forest department ...READ MORE
Drinking water supply schemes under Rajiv Gandhi National Drinking Water Mission have been formulated in rural areas with surface water as source to tackle water quality problem. Habitations affected by chemical ...READ MORE
The eleventh annual meeting of the G20 heads of governments Why in News: The eleventh annual meeting of the G20 heads of governments was held at the Chinese city of Hangzhou, ...READ MORE
Dasara special package train tour on the Golden Chariot The Karnataka State Tourism Development Corporation (KSTDC) will launch the Dasara special package train tour on the Golden Chariot from October 1, ...READ MORE
Municipalities are empowered to levy taxes on i) buildings or lands or both (property tax), ii) advertisements, iii) toll on vehicles other than those taxed under Karnataka Motor Vehicles Taxation ...READ MORE
Forest Survey of India (FSI) has chosen Kodagu in Karnataka to implement the theoretical model of the National Forest Monitoring System (NFMS). E Vikram, deputy director, FSI, Deharadun on 2nd March ...READ MORE
NammaKPSC ClassRoom: What and Why Kirishi Bhagya
Ground water management
Karnataka Updates: Indelible ink for banks will come
Welfare of acid attack victims
12 acres of Kappatagudda forest destroyed in fire
Rural Development-Multi Village Scheme Project & Swachha Bharat
Highlights of the G-20 Summit – 2016
Do you know what about Dasara Golden Chariot
Karnataka Economy – Tax Revenue & Funding Capital
Kodagu chosen for pilot study of National Forest