Focusing on the need to integrate all retail payment systems under one umbrella, The Reserve Bank of India set up the Board for Payment and Settlement Systems in 2005, which eventually led to the formation of National Payments Corporation of India (NPCI). NPCI has been endorsed by RBI and currently has ten promoter banks namely, State Bank of India, Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, ICICI Bank, HSBC, HDFC Bank, and Citibank.
Representing a miniature India in itself, the name RuPay, has been coined from two separate words namely, “Ru” from the Indian Rupee and “Pay” from payments. The RuPay card was introduced by NPCI in accordance to RBI’s vision of setting up a domestic payment system in India, which will allow Indian financial institutions to facilitate electronic payments across the country. With major competitors like MasterCard and Visa, RuPay has been trying to establish a strong foothold in the international market and is accepted on the Discover payment network owing to NPCI’s collaboration with Discover Financial Services (DFS).
Any RuPay card offers customers enhanced security in the form of an embedded EMV chip enabling high value transactions to be done with complete protection. Additionally, RuPay cards also carry an inbuilt microprocessor circuit containing information about the card owner. RuPay cards can be used at over 145, 270 ATMs on the National Financial Switch network and purchases can be made at over 875,000 Point of Sale terminals across India. Customers can also use RuPay cards for online transactions and purchases at over 10,000 web portals. NPCI has formed tie-ups with 29 major banks to enable PIN based PoS transactions via RuPay cards across various merchant outlets in India.
RuPay cards are still relatively new in the Indian market, but offer various benefits to card holders with superior customer service and higher levels of acceptance. NPCI offers RuPay cards at low processing fees along with instant SMS alerts for every transaction made by a customer.
1) RuPay cards help save cost:
Being a domestic payment system, all transactions will happen inside India leading to lower clearing and settlement cost for each and every transaction. Banks will benefit immensely from this as transaction costs will become very affordable, directly leading to increase in usage of RuPay cards across the country.
2) Customised for Indian consumers:
Made in India, for Indians! RuPay cards will be designed and manufactured to cater to the needs of Indians with maximum flexibility to customise the product and services offered.
3) RuPay transactions are secure:
Since all the card transactions take place within India, customers can rest assured that their personal information and data will remain inside the country, without the intervention of foreign organisations.
4) RuPay cards enables banks to tap into new consumer segments:
Financial institutions in India can use RuPay cards to introduce the electronic way of life to certain sections in India, where banking services are still unavailable. Rural areas will benefit from RuPay products as they are indigenous and also work to be very economical for banks planning to offer them to unexplored customer segments.
5) Products and Payment channels brought closer:
RuPay cards aim to connect various payment channels and products in India. Customers can access services like ATM services, banking transactions, e-banking services, requests for credit instruments, etc. using RuPay cards across different banking platforms.
6) Online payments with RuPay are quick and safe:
E-commerce transactions using RuPay cards can be done without any hassles and in a very secure manner. RuPay cards carry a two-tier authentication process as mandated by RBI, and offer protection against phishing and data logging. The online interface is also very user-friendly and processes card transactions at a very fast rate.
With RuPay debit cards having a successful run in the Indian market, NPCI has decided to launch RuPay credit cards in 2016. Anticipated to improve RuPay penetration in India, the organisation is of the thought that the credit cards will help tap into new segments across India. NPCI expects that the new RuPay credit card will rise to be a tough competitor for Visa or MasterCard services, which already have a well-established customer base in India. Currently, 13% of all transactions done at PoS terminals, ATMs and e-commerce websites are done using RuPay cards, with a steady rise in the number of transactions, every month.
RuPay credit cards will also be launched in the global arena with tie-ups with foreign institutions under the name, RuPay International. NPCI recently announced that financial institutions like JCB from Japan have tied up with RuPay to enable overseas transactions and China Union Pay is now in talks with the organisation to establish a collaboration soon. RuPay will also be contributing to the e-banking segment by providing various platforms for mobile banking and internet banking and will also facilitate the growth of e-retail payments in India.
Yes, RuPay has a Kisan card exclusively for farmers, enabling them to perform ATM and PoS transactions.
Unlike other payment channels, RuPay does not have a mandatory quarterly fee or joining fee to be paid by customers.
RuPay has partnership with private sector banks, public banks and rural as well co-operative banks. This is a huge advantage for RuPay customers as the reach of a RuPay card is quite high with tie-ups even with smaller banks across India.
Yes, RuPay cards can be used for cashless transactions anywhere across the globe.
National Payments Corporation of India or the NPCI has been in the process of launching a credit card of their own. The progress around this has been significant and the new credit card is expected to be launched by this year end. Over 35 per cent of the debit card market is controlled by the NPCI and with the launch of this credit card, NPCI aims to make way into the credit card market too.
This delay in the launch of credit card is because it has been waiting to move from the FIS switch to the new switch from Euronet. This new switch is supposed to be completed by August 2016 after which the NPCI credit card can be launched safely. Without the Euronet switch customers would have faced issues in aligning with the new switch. IN 2015, NPCI had launched the debit card Rupay which has gone ahead to capture 35 per cent of the debit card market.
9th June 2016
As per a recent announcement by the National Payments Corporation of India (NPCI), the RuPay credit cards are set to be launched by September of this year. Around 10,000 RuPay credit cards will be issued at the time of its launch. This credit card payment option will be available in two variants- the Platinum credit card and the Regular credit card. Using this scheme, the NPCI aims to replace the international payment service providers such as Mastercard and Visa in India. From next year onwards, NPCI aims to issue 500,000 - 1,000,000 RuPay credit cards a year.
2nd May 2016
According to a survey conducted by JM Financial, the usage of RuPay cards has increased to 38% of the market share as compared to other debit cards. This growth has been achieved due to the Pradhan Mantri Jan Dhan Yojana financial inclusion scheme. In terms of card transactions, RuPay has a share of 20.4% of the ATM transactions and 4.1% of the purchase transactions. With the launch of the RuPay credit card expected in the month of September, a robust branding campaign is being put together to promote the usage of RuPay across the country. RuPay would also be partnering with 11 payment services to improve its market share. Though the Jan Dhan Bank accounts have contributed significantly to the increase, RuPay still needs to gain more momentum to compete with top card issuers in the country.
21st March 2016
RuPay Credit Cards will be launched this year in June, by NPCI (National Payment Corporation of India). Currently, the promoter is working on updating the technology and technical improvements for the credit card. RuPay credit cards will be available in both Visa and Mastercard variants. NPCI has partnered with Discover Financial Services (U.S based company), JCB Co (Japan based company), and China UnionPay so as to permit the usage of the chip-based card abroad. RuPay card payment system currently facilitates electronic payments to all banking and financial institutions in India.
3rd March 2016
The National Payments Corporation of India (NPCI) has announced that it will introduce a Rupay enabled credit card by mid year 2016. The Chairman of the NPCI, M. Balachandran had said that there are 241 million Rupay cards in circulation. The Rupay segment comprises of 35% of the total number of cards in circulation in India. Rupay accounts for 20% of the country’s card-based transactions.
NPCI has enhanced its paid-up capital by Rs. 37 crore making its total paid-up capital Rs. 137 crore. NPCI increased its stakeholders by widening its base between public and private sector banks. Though NPCI is a non-listed entity and does not declare dividends, 56 banks are shareholders.
25th February 2016
The National Payments Corporation of India Ltd has launched a payments interface through which customers can easily transfer money and make bill payments. This interface will be live in April and RuPay payments can also be done using this system. Currently, in a testing phase, this interface will be introduced with the inclusion of twenty nine banks from the first quarter of the upcoming financial year. The Unified Payment interface will allow customers to make instant fund transfers to different banks using a single identifier. The user can link multiple bank accounts to a single mobile application, with funds being transferred and received through the interface. Information like one-time passwords, bank account numbers and phone numbers need not be entered while making transactions here. Customers do not have to provide any net banking or card details while using the interface. Along with the new payment interface, NPCI is also planning to launch four more products during the course of the year, namely - electronic toll collections, Bharat Bill Payment System (BBPS), RuPay credit cards and a tap-and-go transit card.
18th January 2016