Indian RuPay card answer to Visa/Master Card?

kas-kpsc-ips-upsc

  • 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.
Related Posts
The Indian Railways will join hands with the Indian Space Research Organisation (ISRO) to get online satellite imagery for improving safety and enhancing efficiency. a massive exercise of GIS [Geographical Information ...
READ MORE
The Karnataka On-demand Transportation Technology Aggregators Rules, 2016.
The new rules for taxi aggregators issued by the government will mean that they will have to toe the line on passenger safety. But, for the moment, they have been given ...
READ MORE
INSAT-3DR
INSAT-3DR Why in News: In its tenth flight (GSLV-F05) conducted recently, India’s Geosynchronous Satellite Launch Vehicle, equipped with the indigenous Cryogenic Upper Stage (CUS), successfully launched the country’s weather satellite INSAT-3DR, ...
READ MORE
Karnataka Current Affairs – KAS /KPSC Exams – 19th March 2017
From March 26th Yeshwantpur-Hassan Intercity Express on new line Trains are set to chug on the new Chikbanavar-Hassan railway line with the railways setting March 26 as tentative date for the inauguration ...
READ MORE
10th ಮಾರ್ಚ್ 2018 ಕನ್ನಡ ಪ್ರಚಲಿತ ವಿದ್ಯಮಾನ
ಚೀನಾ ಗಡಿಯ ಸೈನಿಕರಿಗೂ ಪೂರ್ಣ ಪಿಂಚಣಿ ಭಾರತ–ಚೀನಾ ವಿವಾದಿತ ಗಡಿ ಪ್ರದೇಶದಲ್ಲಿ ಕರ್ತವ್ಯ ನಿರ್ವಹಿಸುವ ವೇಳೆ ಮೃತಪಟ್ಟ ಅಥವಾ ಗಾಯಗೊಂಡ ಸೈನಿಕರ ಕುಟುಂಬಗಳಿಗೆ ಪೂರ್ತಿ ಪಿಂಚಣಿ ನೀಡಲು ರಕ್ಷಣಾ ಇಲಾಖೆ ನಿರ್ಧರಿಸಿದೆ. ಕಳೆದ ವಾರ ಮಾಜಿ ಸೈನಿಕರ ಕಲ್ಯಾಣ ಇಲಾಖೆಯು 3,488 ಕಿಲೋ ಮೀಟರ್‌ ...
READ MORE
INDIA and FRANCE
France commits €300 million for solar energy French President Francois Hollande  committed €300 million (around $325 million or Rs. 2,200 crore) over the next five years for the global development of solar ...
READ MORE
Karnataka Current Affairs – KAS/KPSC Exams- 24th Nov 2017
Bill passed to preserve Chalukya sites The Legislative Assembly on 23rd Nov passed the Chalukya’s Heritage Area Management Authority Bill, 2017, for conservation of Chalukya heritage area of Badami, Ihole and ...
READ MORE
Karnataka Current Affairs – KAS/KPSC Exams – 2nd Oct 2017
Green nod to Karnataka's Rs 1,561-cr Harohalli industrial park The Centre has given its green light to the combined development of Harohalli industrial zone in Ramnagara district of Karnataka entailing an ...
READ MORE
Karnataka: Today’s Current Affairs – 15th March 2017 for KAS/KPSC Exams
Karnataka: Govt deposits input subsidy into drought-hit farmers' accounts The government on 14th March took measures to deposit Rs 671 crore to bank accounts of 9.68 lakh drought-hit farmers as input subsidy ...
READ MORE
Rural Development – Housing – Urban Ashraya/Vajpayee Housing Scheme & Nanna Mane
This State Sponsored scheme was introduced during 1991-92 to cover urban poor whose annual income is less than Rs.32,000. The beneficiaries are selected by the Ashraya Committee, comprising of both official ...
READ MORE
ISRO to help put railway safety back on
The Karnataka On-demand Transportation Technology Aggregators Rules, 2016.
INSAT-3DR
Karnataka Current Affairs – KAS /KPSC Exams –
10th ಮಾರ್ಚ್ 2018 ಕನ್ನಡ ಪ್ರಚಲಿತ ವಿದ್ಯಮಾನ
INDIA and FRANCE
Karnataka Current Affairs – KAS/KPSC Exams- 24th Nov
Karnataka Current Affairs – KAS/KPSC Exams – 2nd
Karnataka: Today’s Current Affairs – 15th March 2017
Rural Development – Housing – Urban Ashraya/Vajpayee Housing