RuPay Card: An Overview

RuPay cards were launched by the Reserve Bank of India in 2012. It is a card payment network of India with wide applications. In this article, you can read all about the RuPay cards for the IAS exam.

RuPay Cards

RuPay is the first of its kind global card payment network of India with wide acceptance at ATMs, Point of Sale Devices, and e-commerce platforms across the country. 

• It was launched in 2012 by the Reserve Bank of India (RBI).
• The name RuPay is derived from ‘Rupee’ and ‘Payment’ which emphasizes that it is India’s very own initiative for VCard Payments.
• RuPay is an initiative of the National Payment Corporation of India (NPCI), the umbrella organization that powers retail payments in the country. 

RuPay Card Aim & Vision

RuPay was launched with the vision of building the necessary banking infrastructure to drive India towards a “less cash economy”.

Issuing Banks:

• At present, more than 1,100 banks issue RuPay Cards. These banks include Public Sector Banks, Private Sector Banks, Regional Rural and Co-operative Banks.
• Its ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC.

What are the Benefits of RuPay Cards?

RuPay is designed to meet the needs of Indian customers. Some of the benefits of RuPay cards are as follows:

• Security of information related to the customers:
• • Data of consumers and all the transactions pertaining to the RuPay card are secured under this scheme. 

• Safe transactions:
• • With SMS alerts and notifications that are sent to the customer’s phone number after every transaction, RuPay cardholders can be ensured of a secure transaction.

• Greater reach:
• • RuPay Card was associated with the Jan Dhan Account hence, consumers in rural areas can easily apply and get a RuPay card.

• Less transaction costs:
• • When it comes to the RuPay cards transactions, all the processing happens within the country. This results in a lower cost of settlement and clearing for the transactions made using a RuPay debit card. Banks will profit immensely from this as costs for transaction processing become affordable.

• Payment solutions across platforms:
• • RuPay debit card is designed to provide complete interoperability between payment channels including mobile technology, ATMs, cheques, etc.

• Suitable for Indian customers:
• • RuPay cards have been customized keeping in mind the product and service requirements of Indian customers, merchants and banks.

• Accidental insurance for RuPay ATM cardholders:
• • All RuPay ATM-cum-debit cardholders are presently eligible for accidental death and permanent disability insurance cover. RuPay Classic cardholders are eligible for a cover of Rs 1 lakh, whereas RuPay Premium cardholders are eligible for a cover of Rs 2 lakh.

Achievements so far:

Introduction of PMJDY Card Variant (September 2014):

• The RuPay PMJDY (Pradhan Mantri Jan-Dhan Yojana) card is issued to people who have opened accounts under the Pradhan Mantri Jan Dhan Yojana (PMDJY) – a National Mission for Financial Inclusion that was developed to provide people access to financial services like banking, savings/deposit accounts, remittance, credit insurance, and pension, in an affordable way. 
• The card allows the user to make transactions at all ATMs, POS terminals, and e-commerce websites. It also comes with a Personal Accidental death and total disability coverage of up to Rs. 2 lakhs.

RuPay Contactless Card 

RuPay came up with a contactless card scheme in June 2016. NPCI has invested in offering next-generation solutions like tokenization and mobile-based PoS. These technologies enable Indian consumers to securely use their phones to make card payments without disclosing their sensitive card details. It will allow cards to be tokenized on smartwatches, and other wearables, including many IoT-enabled devices allowing them to conduct card payments. It has the following features:

• Dual Interface payment options for all Transit, ParaTransit & Retail shopping – Supports both offline (Contactless) & online (Contact & Contactless) transactions.
• Wallet based contactless Payments – There is a provision of storing money on the card which can be used to initiate contactless payments (offline payments) across various use cases like transit, retail, toll, parking, etc. which is also referred to as Card Balance or Offline Wallet.
• Pass writing in the Service areas – It is a unique feature that enables customers to use the card for merchant/operator-specific applications e.g. travel passes, season tickets, etc.

RuPay One Nation One Card

Just like the concept of GST, with the introduction of one tax, citizens do not have to pay multiple taxes at various platforms and levels, similarly, with this card, users can make payment of travel fare and other utilities just with this single card at any transport mode. 

• It simply means with this inter-operable transport card, citizens can pay the bus fare, metro fare, parking fees, toll taxes, retail shopping and can even withdraw money. This initiative of the Indian Government is based on the theme of one card usability in all payment systems.    
• This one nation one card or we can say National Common Mobility Card (NCMC) is a part of the “Make in India” campaign/project of the Government of India. Until now, India has had to depend on a foreign country for technology. 
• This card is indigenously developed showing that our country does not necessarily need to rely on foreign technology.
• NCMC will become available on the entire Delhi Metro network by 2022.

Various benefits:

• RuPay in the last few years has launched various card variants catering to the different segments of society.
• In addition to the Government scheme cards, RuPay Classic, Platinum & Select variant cards are designed for the masses and affluent customers. 
• RuPay offers excellent privileges and benefits such as International Acceptance, Domestic and International Airport Lounge Access, free personal accidental death and permanent total disability insurance coverage, various merchant offers, different cashback schemes, health and wellness benefits.

Bharat Ecommerce Payment Gateway (BEPG):

• BEPG is the new e-commerce system to enhance the current e-commerce experience for the RuPay Cardholders. 
• RuPay card aims to deliver a convenient and easy e-commerce experience without compromising on security and risk.

Conclusion:

NPCI recognizes the importance of tech-driven innovations in the retail payment system to drive operational efficiencies among a larger Indian audience.

FAQs related to RuPay Cards

What is the difference between RuPay and VISA card?

Since RuPay card transactions happen locally in India, the processing fee is lesser as compared to the VISA card. For the same reason, transactions are processed faster in the case of RuPay. However, the RuPay is accepted only by domestic payment gateways, unlike the VISA which has international acceptance. Another difference is that Indian banks do not have to pay any entry or quarterly fee to RuPay whereas this has to be paid for VISA. While the VISA offers both debit and credit cards, RuPay offers only debit cards.

Is RuPay card internationally accepted?

Apart from India, RuPay can be used for payments in Bhutan.

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