owned banks to issue RuPay debit cards to their customers. This looks
like a clear indication to promote these cards. But, what exactly is this
RuPay card and how does it function? Let's look into it now.What is it?
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.
Who initiated it?
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.
How will it work?
RuPay debit cards are similar any other debit cards that you might hold now.
You can access them 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.
What are the Benefits of RuPay card?
Lower transaction cost – International transactions lead to higher transaction
costs. Such costs can be reduced by using RuPay card since processing will
be done within the country. Also, transactions will be faster.
Sms alerts – Users will get alerts for every transaction made through this card.
Reduced processing fees – Processing fees for RuPay card compared with
regular debit/credit cards will be considerably lower.