Recently, the Reserve Bank of India (RBI), in a bid to broaden the scope of RuPay cards has decided to permit banks to issue RuPay Prepaid forex cards to customers and to issue such cards abroad.
About RuPay card:
- It is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI).
- Its mission is to fulfil the Reserve Bank of India’s vision of having a domestic, open-loop and multilateral system of payments in India.
- It works to enable electronic payment at all Indian banks and financial institutions.
- Benefits of RuPay Card
- Lower cost and affordability:Â Since the transaction processing will happen domestically, it would lead to a lower cost of clearing and settlement for each transaction. This will make the transaction cost affordable and will drive the usage of cards in the industry.
- Customized product offering:Â RuPay, being a domestic scheme is committed towards the development of customized product and service offerings for Indian consumers.
- Protection of information related to Indian consumers: Transaction and customer data related to RuPay card transactions will reside in India.
Key facts about NPCI
- It is an umbrella organisation launched in 2008 by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
- It is owned by a consortium of banks, is aimed at creating robust payments and settlement systems.