Question: NPCI introduced RuPay debit cards in 2012. RuPay branded credit cards will soon be launched. Provide an overview of the RuPay Scheme which will promote cashless transactions and curb black money, promoting economic growth.
• RuPay is India’s indigenous card payment system
• Like other cash payment schemes such as Visa and MasterCard, it ensures cashless transactions
• Scheme was conceived by NPCI under RBI and it is an umbrella institute for retail payment systems in the nation
• Originally called IndiaPay, RuPay is derived from “rupee” and “payment”
• RuPay can be used at ATMs and also for shopping online and offline
• RBI needed a domestic card system which provided affordable electronic transactions for local banks to promote financial inclusion and break the dominance of international companies such as Visa and MasterCard
• Moreover, transaction and customer data of RuPay users will remain confined to India
• RuPay is accepted at more than 1 million PoS terminals
• Over 20,000 online merchants accept RuPay cards.
• RuPay cards can be used at all Discover & Diner PoS and ATM networks
• RuPay cards are more affordable for banks. According to NPCI data, the cost is around one-third of the fee charged by foreign card brands
• NPCI charges 45 paise per transaction for ATMs and 90 paise per transaction at PoS in merchant establishments or online stores regardless of transaction value while other card systems charge more
Facts and Stats
• According to data in the Finance Ministry’s website, around 14 crore RuPay cards have been issued till date.
• From the 50 crore debit cards and two crore credit cards in circulation, this comes to around 27 per cent in less than 3 years
• From 14 crore cards issued, 55% are active, according to Finance Ministry information.
Jan Dhan Yojna and direct benefits transfer scheme have given RuPay a massive boost