Friday 5 September 2014

What is RuPay Card?



MUMBAI: RuPay cardholders will have dual insurance covers, with the 
government roping in the Life Insurance Corporation of India a day before 
unveiling its financial inclusion programme Pradhan Mantri Jan Dhan Yojana.
LIC, the country's largest financial institution, will offer a life cover of 
Rs 30,000 while HDFCErgo will provide a Rs 1-lakh personal accident cover 
to RuPay cardholders. (The Economic Times)
Recent developments saw Government passing on instructions to state 
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.

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