Showing posts with label RuPay debit card. Show all posts
Showing posts with label RuPay debit card. Show all posts

Saturday, February 18, 2017

Rs 27,000 crore saved under Direct Benefit Transfer scheme since November 9

Union Minister, RuPay, Haryana, Haryana Education Minister, DBT

Since digital transactions took off rapidly from November 9, 2016, Rs 27,000 crore has so far been saved under the Direct Benefit Transfer scheme, this was informed at an event held at Panchkula today.
Also, about 35 per cent people have taken to debit card, RuPay card and e-wallet services for making payments in Haryana.
This was disclosed in the presence of the Union Minister of State for Social Justice and Empowerment, Krishan Pal Gujjar, and the Haryana Education Minister, Ram Bilas Sharma, at the inaugural function of the ‘Digi Dhan Mela’ and ‘Basant Utsav’, at Panchkula, near here, today, a Haryana government statement said here.
Speaking on the occasion, Gujjar said that 100 Digi Dhan Melas were being organised in the country to encourage people to adopt cashless transaction system for making payments.
So far, 56 such melas have been held. This is the third such mela in Haryana after Gurugram and Sonipat.
Gujjar urged the people to make digital transactions to realise the dream of Prime Minister Narendra Modi, and also encourage others to adopt this system.
The main aim of Digi Dhan Mela is to give people message of ‘Mera Mobile-Mera Bank-Mera Batua’, he added.
Speaking on the occasion, Ram Bilas Sharma thanked Arjuna awardee Sanjay Phogat, international shooter, Gauri Sheoran, and Kings XI Punjab (IPL) player, Manan Vohra, and others for attending the mela and expressed hope that such events would inspire people to adopt digital payment methods.
Vice-Chairman, National Payments Corporation of India, Pushpendra Singh, and Deputy Director, NITI Aayog, Sukhdeep Kaur, gave detailed information about various digital schemes.

Friday, December 30, 2016

PM Narendra Modi's Mastery Of The Message To Be Tested As India Enters 2017

PM Narendra Modi's Mastery Of The Message To Be Tested As India Enters 2017: Foreign Media

Prime Minister Narendra Modi will go into 2017 watchful but unbowed.

In what will be a busy year of state elections, economists are slashing India's growth forecasts because Prime Minister Narendra Modi's unprecedented cash clampdown is denting demand. The experiment has missed its first marker of success and the almost-daily regulatory flip flops are enraging citizens.

Yet, analysts point to the fact that India hasn't seen bloody riots of the kind witnessed in Venezuela, which followed PM Modi in banning higher-value banknotes before it reversed the move. Perhaps most importantly, a fractured opposition hasn't been able to capitalize on the social pain triggered by the world's most sweeping currency policy change in decades.

"So far there has been no successful mobilization of public opinion against demonetization," said Sanjaya Baru, New Delhi-based director at the International Institute of Strategic Studies and media adviser to Narendra Modi's predecessor, who's written books analyzing former administrations. "Though we can't say what's going to happen in the future, at least so far it would seem like Modi is on top."

The move tests PM Modi's reputation as the master of the message. He has touted the cash ban as India's strongest step against tax evasion and graft in a nation where rising economic inequality helped him sweep to power with the biggest electoral mandate in 30 years.

PM Narendra Modi on Nov. 8 banned 500 and 1,000 rupee notes, removing 86 percent of currency in circulation. With TVs beaming pictures of serpentine queues spilling out of banks and newspapers carrying stories of rural distress, he pleaded with Indians to give him until Dec. 30 to ease the strife.

Here's the impact: India's economy is projected to grow 6.5 percent October-December instead of the 7.8 percent economists had predicted earlier. Moody's Investors Service says asset quality at Indian banks -- reeling under a pile of bad loans -- will weaken. Small businesses, the biggest creators of jobs, are estimated to forfeit transactions worth $9 billion.

International observers such as former U.S. Treasury Secretary Lawrence Summers and former World Bank Chief Economist Kaushik Basu have criticized Modi's move.

"Even if consumption revives quickly on the back of remonetization, investment could remain muted for longer," said Pranjul Bhandari, Mumbai-based economist at HSBC Holdings Plc. "The output gap, that is the slack in the economy, will likely remain negative for two quarters longer than we had initially estimated, making it unattractive for investors."

Medium as Message

And while the potential impact on state polls due in 2017 is not yet clear, the subdued outlook hasn't dented the performance of Narendra Modi's party in municipal elections over the past month.

One reason could be his ability to channel his message via social media, as President-elect Donald Trump does, allowing Narendra Modi to speak directly to the public without any media filter.

"This shows the importance people attach to good governance," PM Modi tweeted on Dec. 20 of the election results.

He, however, hasn't held a single national press conference since taking office and interviews are vetted. Instead, Narendra Modi relies on public speeches and has used the medium more than 10 times since Nov. 8 to defend demonetization.

Narendra Modi's speeches brim with rhetorical flourish and his bold cash clampdown became important part of his narrative as he approached the half way mark in his term early November.

"Modi presented himself as someone with fire in the belly, willing to change things in the country," said Ullekh NP, author of War Room: The People, Tactics and Technology Behind Narendra Modi's 2014 Win. "People at least for now believe his message; that he's incorruptible, that he has no family, that he's focused on the nation. But unlike an election campaign, where promises suffice, here there's prolonged hardship for people."

Support for Narendra Modi will waver if opposition parties form alliances in Uttar Pradesh, Ullekh said by phone from the key electoral state.

Shifting Goalposts

Narendra Modi's skill in rebranding has allowed him to recast his message even as massive deposits of old notes being turned in at banks robbed him of his main reason for the demonetization.

Indians have deposited 13 trillion rupees of the 15.4 trillion rupees invalidated by Narendra Modi's move, undermining the government's estimate that about 5 trillion rupees of this was unaccounted money and wouldn't reach banks.

"It seems very likely that the original aim of the demonetization drive -- forcing illicit wealth holders to come to light -- has already very nearly failed," said Vaninder Singh, an analyst at NatWest Markets, adding that this has pushed the government to change its commentary to fostering a cashless economy. "At what level of economic pain will we see an inflection in Modi's ratings? The answer depends upon how 'patriotic sacrifice' interacts with economic pain."

Political rivals allege that the shifting goalposts indicate Narendra Modi's Nov. 8 decision was never intended to target black money. Leaders from the main opposition Indian National Congress party said they'll have to hold smaller rallies in Uttar Pradesh due to the cash clampdown. The state's Chief Minister Akhilesh Yadav, from the Samajwadi Party, said he's sure to win because the lines of harassed citizens queuing up at cash machines will now shift to vote for him at polling booths.

Faith and Fear

Uttar Pradesh is due to vote by mid-May. It is India's most populous state and the biggest contributor to farm output. Elections will be held before that in four other states, including Punjab, called the 'bread basket of India.'

"Farmers are hurting," said Ajay Vir Jakhar, chairman of lobby group Farmers' Forum and grandson, son, and brother of Congress politicians. "Demonetization will have limited impact politically because opposition isn't able to take advantage of the pain."

Investors will focus on the government's first growth forecast for the year through March -- due Jan. 7 -- to assess the economic impact. Meanwhile, tax officials are raiding homes and offices across the country in a China-style crackdown on corruption, seizing bundles of currency notes and stashes of gold and jewelry.

Narendra Modi should follow his cash ban by lowering corporate and income tax rates in the budget -- likely Feb. 1 -- to encourage compliance, said analysts at Kotak Institutional Equities Ltd., adding that critics of his Nov. 8 decision are underestimating the "psychological" impact of the step.

The move "will reinforce the faith of the general population in the government's efforts to clean up the system and instill fear in a section of the society, which hitherto has had little regard for the laws of the land," they wrote in a Dec. 19 report. "Faith and fear."

Friday, December 23, 2016

Gujarat shock for Narendra Modi: 56 per cent RuPay cards ‘inactive

After announcing his much-debated decision to demonetise Rs 500 and 1000, Prime Minister Narendra Modi has been pitching for a cashless economy. (Reuters Image)

After announcing his much-debated decision to demonetise Rs 500 and 1000, Prime Minister Narendra Modi has been pitching for a cashless economy. To achieve that, the country needs to have a sound banking infrastructure and a strong digital penetration. But a report suggested that PM Modi’s home state Gujarat is lacking at that front. According to a State Level Bankers’ Committee (SLBC) report released Monday, about 56 per cent of the RuPay Cards issued to bank account holders in the state under Pradhan Mantri Jan Dhan Yojana were found to be “inactive”. “After the withdrawal of legal tender character of Rs 500 and Rs 1,000 from November 9, 2016, and various measures initiated by the government to give thrust to cashless and digital economy, the RuPay card distribution and activation has assumed a very high importance,” stated the report that was released after bankers in Gujarat met for the first time after demonetisation, The Indian Express report said.
There are over 90 lakh Jan Dhan accounts in Gujarat. Of these, RuPay cards have been issued against 73.85 lakh accounts. However, the number of people using RuPay Cards linked to these Jan Dhan accounts is considerably low. “Of the 73.85 lakh RuPay cards issued, only 44 per cent or 32.63 lakh RuPay cards are active,” said Vikramaditya Singh Khichi, convener, SLBC, Gujarat. Citing Lack of financial literacy is seen as a major reason for such high volumes of inactive RuPay cards, the report pointed out that despite Gujarat having 49 Financial Literacy Centers (FLC), not one has been opened in rural areas. “Out of the 49 FLCs, one FLC is in metro, 33 are in semi-urban and 15 are in urban areas, whereas no FLC is opened in rural areas,” the report stated.
Besides, of the 5,860 bank mitras or business correspondents engaged by banks in places were bank branches are unavailable, around 1,000 bank mitras were found to be inactive. “After initiation of the demonetisation move, providing banking services to the rural masses through digital mode has become all the more important, therefore, banks are requested to immediately make necessary improvement in their business correspondent model,” stated the report.
Reserve Bank of India data for October 2016 showed the number of debit cards in the country stands at 94.2 crore. People used debit cards for transactions worth Rs 2.63 lakh crore in October but over 90 per cent of these were done at ATMs. Only 8 per cent utilised these cards at POS (Point of Sale) terminals to purchase goods and services. That means nine of ten cards are used solely for cash withdrawals at ATMs. Nearly 50 per cent of the total number of debit cards are being actively used but the utilisation rate for goods and services is much lower — around 6-8 per cent. This is despite the fact that there are 15.12 lakh POS terminals across the country as against a total of 2.20 lakh ATMs.

All you need to know about RuPay card and its value post demonetisation

RuPay L

November 8th, 2016, would be marked as a historical day when high-denomination currency notes were demonetized by the Modi government in a bid to curb black money. Although the move drew both wide criticism and appreciation from different people, it accelerated the pace of non-cash payments in India, which is sure to give the use of plastic money a huge boost.
Interestingly, the current global payment card network industry is dominated by just a few players. Among these global players, Visa and MasterCard enjoy a dominant market share.
What is RuPay card?
RuPay is an Indian card scheme which was launched by the National Payments Corporation of India (NPCI) in March 2012 as an alternative to the MasterCard and Visa card schemes. Started as IndiaPay, it was later renamed as RuPay, which is a combination of rupee and payment.
RuPay also provides payment gateway services for online payments. It is accepted at almost all ATMs and most of the e-commerce websites (approx. 10,000). About 240 banks, including all major public sector banks, currently issue RuPay cards to their customers.
Need/Objective of RuPay cards
Banks while issuing Visa or Mastercard have to incur extra cost which is paid to these companies. A low-cost alternative suitable for the Indian banking channel was needed so that debit cards could have a reach in the rural banking system also.
To act as a vital tool in the financial inclusion drive by involving all economy classes in the banking system. Secure the data of Indian customers within the country as they do not have to share the information to international players like Visa or MasterCard. Reduce the usage of cash and to allow all the financial transaction to be a part of the economy
Status of RuPay cards in India
RuPay cards hold about 40% market share in India , second to VISA cards
Around 30 crore cards have been issued since RuPay’s inception in 2012.
Out of total cards issued, the share in Jan Dhan account is around 18 crore
Average transaction size is INR 3,045 in ATMs
Waiver of various fees and charges makes it far cheaper option for the banks as compared to VISA and Mastercards.
How demonetization impacts RuPay cards
“The demonetization move has definitely given a great boost to the circulation of RuPay cards as more accounts are intended to be opened and due to shortage in currency notes, the transaction size as well as the number of transactions would also increase. It comes as an ideal opportunity to promote the usage of RuPay cards as a lot of cashless transactions are expected to happen,” says Nitin Vyakaranam, Founder & CEO, ArthaYantra.
Even the dormant cards which were issued with bank accounts would be used.
Challenges
The real challenge is the penetration in the mainstream business as most of the cards were issued during the Jan Dhan schemes and most of these accounts have zero balances. Also, the transaction size is very low.
About a half of the population does not have a bank account despite the rollout of schemes like Jan Dhan Yojana and No-Frill accounts. The real difficulty lies in making the banking infrastructure strong and made available to the remotest places in India. “As per the World Bank data, there are 13 bank branches per 100,000 of adult population.
That makes it 7,692 customers per bank. But the distribution of these branches is uneven. With other products and services by RuPay like Kisan cards, Milk procurement cards and other services targeted at rural areas, the Indian banking system needs to reach every village to make the scheme a success and also help in empowering the economically-backward sections of the country,” says Vyakaranam.

Jan Dhan surges Rs 15,000 cr in 10 days as money launderers by-pass demonetisation

Official sources told FE that these accounts saw transactions of R19,250 crore in the 10 days to November 19; over R15,000 crore was deposited and some R4,250 crore was withdrawn. (PTI)

Jan Dhan accounts, integral to the Modi government’s plan for financial inclusion and direct benefit transfer, were meant to have a transformational role in the uplift of the underprivileged, but, ironically, demonetisation has made them a parking lot for black money. Official sources told FE that these accounts saw transactions of R19,250 crore in the 10 days to November 19; over R15,000 crore was deposited and some R4,250 crore was withdrawn. As on November 8, the day Prime Minister Narendra Modi announced that R500 and R1,000 banknotes would henceforth cease to be legal tender, Jan Dhan accounts held R45,637 crore, accumulated over two years and a month.
Deposits in these accounts, 25.5 crore at last count, rose by a third to around R61,000 crore between November 10 and 19, as people with hordes of unaccounted cash sought to convert them to legitimate wealth, according to data furnished by 27 public sector banks and 13 private banks. The account holders have either received rewards for allowing their accounts to be misused or been unaware of the third-party deposits made into their accounts.
According to a PTI report, Mamata Banerjee-ruled West Bengal leads the pack of states that has seen the highest deposits so far followed by Karnataka.
Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) in August 2014. As the government kept public sector banks on their toes, in just over a year, 19.72 crore accounts were opened and 16.8 crore RuPay cards were issued under the scheme, but it later turned out that a sizeable number of accounts remained zero-balance ones. Accounts with nil deposits were 77% of the total at the end of September 2014, but thanks to various government schemes and transfer of subsidies, only 24% of the accounts showed nil balance two years later.
As it became clear that Jan Dhan and other low-deposit accounts were misused by black money holders, the finance ministry last Friday warned that such attempts to convert unaccounted cash would attract “income tax and penalty”.
The ministry added that persons who allow his or her accounts to be misused could be prosecuted for abetment. Revenue secretary Hasmukh Adhia had earlier said that if more than R10 lakh is deposited in an account between November 10 and December 30 without matching income declared, tax plus penalty of 200% of the tax would be levied as per Section 270 (A) of the Income Tax Act. While tax experts doubted the legal tenability of the move, Friday’s release by the ministry went a step further, as it did not specify any threshold trigger. The government had earlier announced that small deposits made in the banks by artisans, workers, housewives, etc, would not be questioned, up to an exemption limit of R2.5 lakh.
Sources added that the Finance Intelligence Unit was keeping tabs on bank officials who may be involved in the misuse of the Jan Dhan accounts. Since these accounts cannot hold more than R50,000 without know-your-customer compliance, the fresh deposits in them mostly tend to be slightly lower than that.
Jan Dhan accounts, along with Aadhaar seeding and mobile phones, form the Modi government’s “JAM” trinity for financial inclusion. Of the 25.5 crore Jan Dhan accounts, 13.69 crore are already Aadhaar-seeded while 19.44 crore RuPay cards have been issued.
A surge in net deposits in Jan Dhan accounts was seen immediately after the scrapping of high-denomination notes but the momentum slowed gradually: Net deposits peaked at R2,525 crore on November 13 but stood at R650 crore on November 19.

Saturday, November 12, 2016

32 lakh ATM cards hacked: Is your debit card safe ?

32 lakh ATM cards hacked: Is your debit card safe, should you change PIN? Everything you need to know

If  you have a debit card and if you are in India, it is very likely that you have received a message from your bank telling you to change the PIN of your ATM card. While sending this message is a standard practice that all banks do from time to time, however, this time it is something more serious than just a word of caution. Reports say that around 3.2 million (32 lakhs) debit cards belonging to major banks have been compromised in India.


Initial reports suggest that this could be the biggest financial breach ever reported in India with State Bank of India, Axis Bank, HDFC, Yes Bank, and ICICI as the worst hit banks. It sure is worrisome considering almost everyone has a debit card these days and 32 lakh is a big number. So is your card also affected by the breach? If yes, what should be your next step, we explain everything.

How serious is this

According to the report, around 26 lakh of these cards are on Visa and Mastercard platform, while over 6 lakh are on the Rupay platform.
SBI has confirmed that it has blocked over 6 lakh debit cards in India after card network companies like NCPI, MasterCard and Visa informed the affected banks about a possible data breach. SBI also commented that the breach did not involve its own ATM machines and networks.
"We'd like to emphasise that SBI's systems have absolutely not been compromised and existing card holders are not at any risk and can continue to use their cards. SBI is in the process of issuing new cards at no cost to those card holders whose cards have been blocked. This is a cards industry incident (not only SBI)," a SBI spokesperson said.
The Reserve Bank of India has also received complaints from the affected banks. According to The Hindu, the RBI has asked the banks to replace 17.5 lakh debit cards.
Customers have been receiving cautionary messages from their respective banks asking them to change the ATM PIN. Axis Banks resorted to blocking the ATMs till the PIN was changed from the bank's ATM. Yes Bank also limited the cash withdrawal to maximum Rs 5,000 per day till the PIN was changed.
HDFC has also notified its users to change the PIN weeks before the reports of breach went public. The bank has also told its customers to not to use HDFC debit card in some other bank's ATM machine.
"Besides advising those customers who we know have used a non-HDFC Bank ATM in the recent past to change (their) ATM PIN, we are advising our customers to use only HDFC Bank ATMs as we believe security controls at some of the other bank ATMs may not be at par with HDFC Bank ATMs," a spokesperson told ET.

How did it happen

The card network companies, Visa, MasterCard and Rupay, have received complaints from banks about unauthorised card usage from locations in China.
According to reports, the breach could have generated in Hitachi Payment Services. Hitachi is one of the largest providers for Point of Sale services, ATM machines and mobile transactions in India. A malware in the Hitachi system could have compromised user data.
It is suggested that the malware was active for about six weeks before getting detected. While the banks haven't shared more information on the type or extent of the attack, the Payments Council of India has ordered a forensic audit on Indian bank servers and systems to find the origin of breach.
SBI and other banks have denied any breach in their systems, however, the possibility of system-wide breach at this early stage cannot be denied. We will (possibly) have more information in this regard in the coming days.

What should you do now

The affected banks have already started notifying their customers to either change the PIN or get a new card from the bank. If you have received such a message you need to follow the bank's instruction carefully.  
A simple PIN change will unblock your card, however, it is advisable to get a new card instead. The current batch of cards use magnetic strips, which is easier to access compared to a chip-based EMV card. The chip-based cards come with added layers of security. The RBI has asked all the banks to upgrade their debit cards to chip-based EMVs.
So here are a few pointers for safer banking:
-- Go to your own bank's ATM machine and change the PIN.
-- If your card is blocked, ask for a new card.

Sunday, April 10, 2016

RuPay, Indian payment company working on ‘contact-less’ debit card

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Domestic payment gateway RuPay, whose debit cards make up more than a third of the total number of debit cards in the country, is now working on a "contact-less" debit card...

Domestic payment gateway RuPay, whose debit cards make up more than a third of the total number of debit cards in the country, is now working on a “contact-less” debit card and is looking to launch it within three months, chief operating officer Dilip Asbe told FE.
“Contact-less” debit card will not be required to be dipped or inserted into a machine, and can instead be scanned by the machine without any physical contact whatsoever, unlike the debit and credit cards in play currently.
“We are very excited about this. Of course, we will have to issue fresh certifications to banks to enable them to start issuing these. But so far, we have received extremely positive feedback,” Asbe said.
Started by the National Payments Corporation of India (NPCI) in 2012, the number of RuPay cards is around 250 million, of the total of 644 million debit cards currently in use in India. This is primarily because of the Pradhan Mantri Jan Dhan Yojana, under which around 170 million RuPay cards were distributed.
NPCI has also issued around 2 million RuPay platinum cards so far. Unlike other gateways, all variants of the RuPay platinum card offer a waiver on fuel surcharge, IRCTC surcharge and free access to lounges across a wide network of airports around the globe. The product has been growing in popularity and will be one of the main focus points for the company going ahead, Asbe said.
The company is now looking forward to launching RuPay credit cards in September, and is aiming at gaining a share of around 10% of the domestic credit card market within the first three years.
As on December 31, the total number of credit cards in India stood at over 22.7 million, issued by 29 banks.

Sunday, March 13, 2016

NPCI To Launch RuPay Credit Card By July

NPCI to Launch RuPay Credit Card by July

The National Payments Corporation of India (NPCI) has said it will launch a RuPay credit card by June or July this year. "By June or July we will rollout RuPay version of credit cards," said NPCI chairman M. Balachandran on the margins of a Unified Payment Interface (UPI) hackathon the umbrella organisation for retail payments in the country organised.

He later said the NPCI has escalated its paid-up capital to Rs.137 crore from Rs. 100 crore by broad-basing its stakeholders from public and private sector banks as well.

As many as 56 different banks have shareholding in NPCI despite it being a non-listed entity with no dividend declarations.

"Ours is a non-profit company, and in spite of not being a listed entity and we don't declare dividends, the enthusiasm shown by people to become shareholders in NPCI has been tremendous," said Balachandran.

According to him, there are 241 million RuPay cards in circulation comprising 35 per cent of the total card base in India and accounting to 20 percent of all card-based transactions.

Starting September, China Union Pay and Japan Credit Bureau (JCB) foreign cards will be accepted in India, said Balachandran.

Speaking on the UPI hackathon, NPCI honorary advisor and former Infosys chief executive Nandan Nilekani said banks can use digital footprint to give customers a loan.

"As more and more payments become digital, it creates a digital footprint of your activity and you (customer) can authorise a bank to use your digital footprint to give you a loan," he said.

Tuesday, February 9, 2016

NPCI aims at financial inclusion: Rupay Card News



Aiming at financial inclusion for all with India's domestic card service RuPay, the National Payments Corporation of India (NPCI) said that as many as 170 million of its 230 million customer base were first-time card users.



"We already have as many as 596 members who are in the RuPay network, including national, international and state cooperative banks. We are now trying to get the district central cooperative banks (DCCB) also in the fold," says A P Hota, managing director and CEO of NPCI.



RuPay also helps curb forex loss. For every transaction involving foreign card providers like Visa, MasterCard, American Express, there is the transaction fee on it going out of the country - an estimated 400 crore annually. "With a domestic card service system, there is a tremendous amount of money that India can retain," says M Balachandran, chairman, NPCI.



Another advantage with using RuPay over international card providers for a consumer is when it comes to the merchant discount rate (MDR) - the rate charged by banks providing debit and credit card services to merchants. So normally a food bill of Rs 2,000 or a saree purchase of Rs 4,000 will result in a Rs 20-Rs 40 deducted as MDR.



"With RuPay, the advantage is that we charge a fixed rate. We charge 60 paise on the acquirer bank and 30 paise on the issuer bank - amounting to 90 paise per transaction. Normally debit card interchange is anywhere between 0.65 to 1%. Credit card interchanges could be 1%-2%. So with RuPay, there is lower costs to merchants, which is passed onto the card holder," says NPCI's Hota.



RuPay also has RuPay Platinum and RuPay international, in partnership with Diners' Club and Discover Financial Services, that aims at catering to a wider audience. NPCI plans to launch RuPay credit cards by June.

RuPay Card is a excellent product, no visibility: Industry


India's domestic card service RuPay is an excellent card with better rates than foreign card payment processors for banks, merchants and end-users, but its lack of visibility make for less traction, say industry experts.



Launched in March 2012, RuPay currently has more than 230 million customers and handles 20% of transactions in the country. The card has a lower debit card interchange rate, compared to international service providers, who roughly charge between 0.65%-1% on every transaction. "That's an estimated 400 crore in transaction fees that's going out of the country - which we could retain if we used a domestic card provider," says A P Hota, managing director and CEO of National Payments Corporation of India (NPCI).



The NPCI has also launched RuPay Platinum and RuPay International, in partnership with Diners' Club and Discover Financial Services, and plans to launch RuPay credit cards by this June. "But do people know about these products. Where is the awareness? Where is the advertising? There needs to be visibility," says S Santhanagopalan, president-finance, TVS Iyengar & Sons Pvt Ltd.



Since processing of transactions happens domestically, usage of RuPay over Visa or Mastercard result in a lower cost of clearing and settlement for each transaction. But this transaction affordability should be driving higher growth and more visibility, says



Currently RuPay is accepted in more than 1.88 lakh ATMs in the National Financial Switch (NFS) network. In tune with the idea of a stronger domestic payment network, the NFS itself is run by the NPCI.





"Having a domestic card makes a lot of sense at every level. I've seen the domestic NETS card used in Singalore and its amazing the kind of reach, convenience and ease of transaction. That way, we are light years behind with RuPay," says Sudhakar G, a chartered accountant with BMR & Associates LLP.

Many people are unaware that RuPay is currently issued in 277 banks in India, including all the public-sector banks like State Bank of India, Indian Overseas Bank and all major private banks like ICICI and HDFC.



"I had to ask my private bank to issue me RuPay, because on their own they don't take the initiative to issue the domestic card. I think they already have a good relationship with the international service providers and don't want to jeopardise that," says N Arunkumar, who is employed at a private bank.



"It is an uphill task. We have now talked with some banks and they have agreed to issue RuPay cards on certain days of the month," says NPCI's Hota.

NPCI has also networked with 5 lakh merchants in India and RuPay can be accessed at more than 8.75 lakh POS (point-of-sale) terminals across the country. POSs being the machines one sees at every sale counter at supermarkets, boutiques, restaurants or bars.



"I've seen travel cards in Singapore and its so efficient. The ease of travel is remarkable. I'd certainly see it as a welcome move if any such thing is available in India," says Sudhakar on the NPCI's move to launch a tap-and-go mass transit card in March in Bangalore.

Monday, October 12, 2015

Paytm to launch virtual 16 digit Rupay card




In a bid to increase the currency of its digital money, leading payments and company Paytm is planning to launch a virtual card in partnership with and a bunch of national banks. The virtual card, which will have a 16-digit number, just like a physical debit or credit card, will expand Paytm's reach significantly from 35,000 merchants currently using its to 1.5 million merchants, who accept all kinds of through plastic cards.

Once rolled out, the virtual card is expected to increase the utility of money stored on Paytm digital wallets, since it will make it usable across a much wider network, said Vijay Shekhar Sharma, “We are building this so that our wallet gets ubiquitously accepted across places.”


PIXEL PUMPING
  • Paytm plans to launch a virtual card with RuPay
  • The card which will have a 16-digit number, just like a debit or credit card
  • It is expected to expand Paytm's reach from 35,000 merchants to 1.5 million
  • Paytm has applied for a payment bank licence. is expected to announce successful applicants by August

For instance, Taxi firm uses Paytm, but some of its peers don't. Similarly, leading e-commerce that may be competing with Paytm in the e-commerce space also do not use Paytm. However, after this virtual card is rolled out, consumers can shop from rival e-commerce sites or book a cab from aggregators other than Uber using their Paytm money. The virtual card will also give Paytm a leg up over its competitors which are offering similar services.

Sharma said the company is currently negotiating the commercials with banks and Rupay, and should be able to launch the product in the next three months. When asked why consumers will opt for a virtual pre-paid card when they can just shop using their debit or credit card, Sharma listed a couple of reasons. Using the debit card might put the entire bank account at the risk of cyber crime and very few people in the country have credit cards. There are only 20 million credit card users, compared to 81 million Paytm users, added Sharma. “Also, our goal is to provide online experience to even consumers who do not have a bank account.”


However, the company might face some challenges as Rupay is not currently offered by each and every bank in India and users might find the procedure too complicated. Once rolled out, a Paytm consumer will be able to see the 16-digit number in the application settings. The company is also exploring the option of issuing a physical card, which can be used at offline retail merchants.

Since Paytm has also applied for a Payment Bank license with the Reserve Bank of India (RBI), it will be interesting to note how these new payment models pan out for the company. In a recent interview to Business Standard, Sharma had said, “Payment will be our primary play. We came into business to solve the payment issues of this country and I am confident we can solve those by using the mobile platform. RBI is expected to come out with the first list on August 1. If we get a licence, we can offer a bouquet of financial services.”

At present, Paytm has a user base of 80 million and 30 million for its mobile wallet service. The number includes users accessing its services through computers. Sharma expects to see 50 million Paytm app downloads and a wallet user base of 200 million by the end of 2015-16.

The company is backed by Chinese e-commerce giant Alibaba's financial arm Ant Financial. It is set to get close to one million merchants from China on its marketplace and add about 100 million stock-keeping units (SKUs) to its platform by July-August as part of the deal. It will also increase the number of Indian merchants from 40,000 at present to 100,000 by the end of this financial year.

Sunday, April 5, 2015

RuPay Card Offers 1% Cashback: What to Know



RuPay Card Offers 1% Cashback: What to Know

The RuPay card, launched by the National Payments Corporation of India (NPCI), is now offering 1 per cent cashback in a direct challenge to international payment card companies like Visa and MasterCard. The cashback facility is available across all RuPay debit cards, which can be used at ATMs, point of sale terminals (PoS), and online transactions.

This implies whatever purchase one makes using the RuPay card, 1 per cent of that purchase amount will be credited back to the account of the cardholder.

Apart from public sector banks, RuPay cards are also issued by regional rural banks, co-operative banks and some private sector banks.

Here are the other benefits of RuPay cards.

1) Lower Cost: Being of Indian origin, RuPay card is cost effective for users as it charges lower processing fees for domestic transactions compared to other cards. "Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction," NCPI says on its website.

2) Faster Processing: All RuPay card payments are processed within India. This makes RupPay card transactions faster than other international cards.

3) Security: RuPay being a domestically developed card, all transaction and customer data related to this card transaction reside in India. It has also launched an e-commerce solution called PaySecure, which provides a secure platform for e-transactions. The platform offers enhanced security measures in addition to the RBI mandated 2-factor authentication requirement like registration, one-time password (OTP), image-based authentication and anti-phising measures.

Like other international debit cards, RuPay cards also use EVM (Europay, Master, and Visa) chip, a global standard for credit card and debit card payments based on chip card technology. In an EVM card each transaction at point of sales is authenticated through entry of a personal identification number to verify the genuineness of cardholder.

EVM-based cards have more security features than magnetic-strip cards where typically only the card's number and expiry date is processed. EVM cards contain more information which needs to be verified at a point-of-sales transaction, making transactions more secure.

Now, book railway tickets with RuPay pre-paid debit cards




Railway Minister Suresh Prabhu launching the IRCTC Union Bank RuPay Prepaid card

Railway passengers in the country can now book their tickets, do shopping and pay service bills using RuPay pre-paid cards, as the Indian Railway Catering and Tourism Corporation (IRCTC) launched the debit card service in the national capital on Tuesday.

The cards can be made available from UBI offices or through IRCTC online. Initially the service will be available for booking tickets and later on, facilities for shopping and bill payments will be added.

The service was launched by the IRCTC in collaboration with Union Bank of India and National Payment Corporation of India.

"It is a union with your bank for customers' interest," Railway Minister Suresh Prabhu said in the capital city while launching the IRCTC-UBI RuPay pre-paid card.

RuPay is the country's own card payment gateway network like Visa and Master Card, and provides an alternative system for banks to provide a debit card service.

UBI CMD Arun Tiwari said "the card holder will get free Rs 1 lakh accident insurance coverage as part of the benefits to customers."

In order to make the card attractive, reward points will be given on each transaction.
One can have the card with a loading limit of Rs 10,000 with partial Know Your Customer (KYC) details or Rs 50,000 loading limit with full KYC.

Manocha said the first five transactions per card every month done on IRCTC for purchase of train tickets will be free and no transaction charges will be levied to customers for six months only.
For every subsequent transaction post the free usage, customer will be charged Rs 10 per transaction.
The transaction charge would be Rs 10 per ticket for booking a ticket through the card on the IRCTC portal.

Prabhu said Railways was partnering with banks and financial institutions to promote passengers' interest.

"It is in line with Prime Minister Narendra Modi's financial inclusive programme as one does not need to have a bank account in UBI to have the card and you can avail it online also," the railway minister said.

IRCTC Chairman and Managing Director AK Manocha said the card was a first-of-its-kind in the market as both virtual as well as physical cards are being issued to customers in two variants.
IRCTC had signed an MoU with UBI for executing the RuPay card project.


Railways launch RuPay pre-paid debit card

Railway passengers can now book their tickets, do shopping and pay service bills using RuPay pre-paid cards, as the IRCTC launched the debit card service on Tuesday. The service was launched by the Indian Railway Catering and Tourism Corporation (IRCTC) in collaboration with the Union Bank of India and the National Payment Corporation of India.

“It is a union with your bank for customers’ interest,” Railway Minister Suresh Prabhu said here while launching the IRCTC-UBI RuPay pre-paid card. RuPay is India’s own card payment gateway network like Visa and Master Card, and provides an alternative system for banks to provide a debit card service.

Prabhu said Railways is partnering with banks and financial institutions to promote passengers’ interest. “It is in line with Prime Minister Narendra Modi’s financial inclusive programme as one does not need to have a bank account in UBI to have the card and you can avail it online also,” Prabhu said.

“It is a union with your bank for customers’ interest,” Railway Minister Suresh Prabhu said here while launching the IRCTC-UBI RuPay pre-paid card.

Railways launch RuPay pre-paid debit card
IRCTC Chairman and Managing Director AK Manocha said the card is a first-of-its-kind in the market as both virtual as well as physical cards are being issued to customers in two variants. Cards can be made available from UBI offices or through IRCTC online. Initially the service will be available for booking tickets and later on shopping and bill payments will be added.

UBI CMD Arun Tiwari said “the card holder will get free Rs 1 lakh accident insurance coverage as part of the benefits to customers.” In order to make the card attractive, reward points will be given on each transaction.

One can have the card with a loading limit of Rs 10,000 with partial “Know Your Customer” (KYC) detail or Rs 50,000 loading limit with full KYC. Manocha said the first five transactions per card every month done on IRCTC for purchase of train tickets will be free and no transaction charges will be levied to customers for six months only.

For every subsequent transaction post the free usage, customer will be charged Rs 10 per transaction. The transaction charge would be Rs 10 per ticket for booking a ticket through the card on the IRCTC portal. IRCTC had signed an MoU with UBI for executing the RuPay card project.