Showing posts with label credit card. Show all posts
Showing posts with label credit card. Show all posts

Monday, July 11, 2016

RuPay credit card launch delayed further

RuPay credit card launch delayed further
RuPay, the domestic card payment service provider which was set to launch its credit card in June this year, has delayed the launch of its product. The earlier timeline for the launch was January, which was later pushed to June. However, now the National Payments Corporation of India (NPCI) has decided to shift the launch date even further.

“RuPay credit card was going to be launched in June 2016 but the launch has been further put off. The board approved date for the launch on August 28 but I think that will be a challenge. But, we will definitely launch the credit card in 2016,” said A P Hota, managing director and chief executive officer, NPCI.


Hota explained that the delay in launch is because NPCI is now working on a higher capacity financial technology infrastructure, which is taking time. “Currently, we have a switching system from Euronet. This has a capacity of 40 million transactions a day. However, the peak volume that we have processed is 14 million. But to be on a safe side, we have started work on a 100-million transaction capacity owned by FIS,” added Hota. The management believes it might take two-three years to reach the 100-million volume capacity mark.

Going ahead, within the credit card segment, NPCI will mainly be focusing on the top end segment, which is the gold or the platinum cards as they believe growth is likely to come from the higher-end variants.

RuPay is a domestic brand in the card space and is owned and developed by NPCI, and aims to compete with Visa and MasterCard that have a strong foothold in the segment. In the past year, RuPay has gained prominence as all the accounts started under the Pradhan Mantri Jan Dhan Yojana scheme have been given a RuPay card. According to the latest data, 219.3 million accounts have so far been opened and 180.1 million cards have been issued under this scheme.

Wednesday, August 26, 2015

India's RuPay breaks Visa and MasterCard's grip

http://www.hindustantimes.com/Images/popup/2015/8/19_08_15-metro13.gif

Hiding behind Prime Minister Narendra Modi’s high-decibel financial inclusion push is a rather unnoticed growth story: RuPay, India’s own payment gateway.
About 190 million, or one in three of the total 580 million debit cards currently in use in India are RuPay cards.
Clearly, the Pradhan Mantri Jan Dhan Yojana (PMJDY) have given a head-start to a one-year-old card system that now stands almost shoulder-to-shoulder with global peers such as Visa and MasterCard in India, at least in user volume. And it has its own advantages (see graphic).
Modi launched the Jan Dhan scheme in August last year, with the promise to end “financial untouchability”.
So far, more than 175 million accounts, which come with a RuPay debit card and an overdraft facility of Rs 5,000, have been opened under the scheme.
Already 154 million RuPay cards have been issued to these new non-frills account holders. Banks have also issued another 40 million RuPay debit cards to “non-Jan Dhan” customers.
“We are now focussing outside the PMJDY and promoting these RuPay cards even to other savings account holders,” AP Hota, MD and CEO, National Payments Corporation of India (NPCI), which runs RuPay, told HT. “Until one year ago MasterCard and Visa Card were predominant in the market while now RuPay has made a mark and we are hoping to increase its presence further.”
MasterCard said Indians are fast adopting digital payment technologies. “There is plenty of room to grow in this segment,” said Vikas Varma, executive director, South Asia, MasterCard.

“Low personal consumption expenditure penetration presents a significant opportunity for electronic payments growth, in line with the government’s less- cash society vision,” said TR Ramachandran, group country manager, India and South Asia, Visa.
NPCI’s nine promoter banks include State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.
For RuPay, which the RBI first conceptualised in a vision paper in 2009, making it more acceptable in retail merchandise and e-commerce transactions, and globally remain key challenges.
China has a similar card called the Union Pay of China.
Indian Railway Catering and Tourism Corporation (IRCTC), billed as India’s biggest e-commerce site, has launched a RuPay pre-paid card that allows railway passengers to book tickets, shop and pay service bills.
NPCI has tied up with Discover Financial Services and Japanese card network JCB for international acceptance of its cards.

RuPay card to soon overtake Visa-Master cards in India?

  RuPay card to soon overtake Visa-Master cards in India?

RuPay, the foster child of Pradhan Mantri Jan Dhan Yojana (PMDJY), is the new payment getaway card in India breaking the long grip of Visa and Master in the card market. And it only looks to increase over the years.

It is interesting to note that, of the 580 million debit cards used in India, 190 million are said to be RuPay card, a huge achievement for a year old card.

The Jan Dhan Yojana, which was launched by Prime Minister Narendra Modi in August 2014, has over 175 million accounts (17.5 crore) as of August 2015.

While 154 million RuPay cards have been issued to the account holders under the PMJDY, banks are also said to have issued 40 million RuPay debit cards to 'non-jan-dhan' accounts.

Having grown so mcuh within a year, the RuPay card is said to have broken the grip of the Visa-Master grip of the card market.

“Untill one year ago MasterCard and Visa Card were predominant in the market while now RuPay has made a mark and we are hoping to increase its presence further”, AP Hota, MD and CEO, National Payments Corporation of India (NPCI) which runs RuPay to Hindustan Times.

The NPCI is likely to launch RuPay credit cards by March next year, as per report in HT.

Moreover, NPCI is also said to have tied up with Discover Financial Services and Japanese card network JCB for international acceptance of the RuPay cards.

With the increasing credibility and importance of the card, the Indian Railway Catering and Tourism Corporation (IRTCT) has also launched a RuPay pre-paid card which allows passengers to book tickets, pay service bills or shop.

Sunday, April 26, 2015

PSU Bank RuPay Cards Now E-Commerce Enabled: NPCI

PSU Bank RuPay Cards Now E-Commerce Enabled: NPCI

The National Payments Corporation of India (NPCI) on Monday said it has completed system integration to enable e-commerce transactions through RuPay cards of public sector banks.

"RuPay card holders of all public sector banks are now e-commerce enabled. Card-holders can now conveniently purchase rail, road and air tickets by logging into the websites of travel companies or buy goods and services from online stores," an NPCI statement said.

Multiple levels of integration with the bank servers are required for enabling transactions like ATM usage, usage at point of sale terminals and e-commerce thorough the cards.

The RuPay cards, launched by the Reserve Bank of India-promoted NPCI, are alternative to foreign cards like Visa and MasterCard, which earn high revenue for facilitating transactions. There are 140 million RuPay cards in use at present.

The state-run lenders are the most active in issuing these indigenous cards.

For using the RuPay card for e-commerce transactions, a one-time user registration will have to be done at the time of the first transaction after which there would be the standard two-factor authentication process.

Over 30,000 online merchants in the country now accept RuPay cards, which includes Flipkart, IRCTC, Jet Airways, Snapdeal, Life Insurance Corp (LIC), Bookmyshow and Homeshop18.

Soon, RuPay ATM Cards for Student Account Holders

In a first-ofits- kind initiative, the Kozhikode District Cooperative Bank (KDCB) will be issuing exclusive RuPay ATM cards for student account holders. Aimed at attracting younger generation to KDCB, the savings bank account scheme of KDCB for minors is awaiting the final nod from the National Payments Commission of India (NPCI).

In the first phase, KDCB’s plan is to encourage high school and higher secondary schools of the district to open savings bank account for minors within a year. The scheme will be implemented with the support of the Education Department, and the account will be linked to the Aadhaar number. KDCB has also designed a colourful Student RuPay card, which is entirely different from the bank’s debit card.
According to KDCB general manager Abdul Mujeeb, currently majority of the customers who are availing of the facilities of KDCB belongs to the older generation. “KDCB’s Student Rupay card scheme not only aims to attract youth to the bank but also to impart knowledge on new banking technologies to them. We are expecting the final approval from the NPCI at the end of this month,” the general manager said.

Further explaining, Abdul Mujeeb said: “RBI norms allow any person who is above the age of 10 years to open a savings bank account. However, KDCB is the first banking institution, perhaps in the country, to design a special scheme in a bid to encourage the students to do banking of their own.”
As per the scheme, any boy or girl of 10 years of age can open a savings bank account with any of the branches of KDCB in the individual’s name by depositing a minimum amount of Rs 100. Though there is no need for the parent or guardian for joining in, the minor will have to get his specimen signature attested by the parent.

The savings bank account of minors will have facilities like internet banking, debit card and ATM in addition to cheque book facility. However, the minor has to ensure a continuous minimum balance of Rs 500 to avail of the cheque book facility. Moreover, the cheque issued from a minor account will bear a prescription indicating the same and it would be valid only for a maximum amount of Rs 5,000.

According to the KDCB general manager, besides students, the scheme would be beneficial to
parents as well as the educational institutions.

Sunday, November 16, 2014

FinMin review meeting with chiefs of PSU banks, FIs on Nov 20

FinMin review meeting with chiefs of PSU banks, FIs on Nov 20
The Finance Ministry has called a meeting of chiefs of public sector banks on November 20 to review their financial performance and Jan Dhan Yojana, among other things.

Chief executives of financial institutions like Nabard and NHB are also attending the meeting.
"Finance Minister Arun Jaitley may attend the meeting. If the Minister is unable to, Department of Financial Services Secretary Hasmukh Adhia will head the review meeting," a source said.

The main agenda of the meeting is discussing financial performance at the end of the second quarter, sources said.

The progress of Pradhan Mantri Jan Dhan Yojana (PMJDY) is another important issue that will be discussed in the meeting.

The issue of asset quality and recovery of bad loans would also be discussed. Credit to farm sector, MSME, housing and education loans may also come up talks, sources said.

Besides, there would be deliberation on lending to stalled projects.

The Prime Minister on August 28 launched the the PMJDY scheme to boost financial inclusion. About 7 crore bank accounts have been opened under Jan Dhan scheme so far.

As on November 10, 7.24 crore accounts have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) of which 4.29 crore in rural and 2.95 crore are in urban areas. RuPay Cards have been issued in case of 3.97 crore accounts.

The Yojana envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility.

The main features of the PMJDY scheme include Rs 5,000 overdraft facility for Aadhar-linked accounts, RuPay Debit Card with inbuilt Rs 1 lakh accident insurance cover.

Besides, account holders under the scheme will get life insurance cover of Rs 30,000. This was additional benefit announced by the Prime Minister during the launch of the scheme.

Under the scheme, the account holders will get an overdraft facility of Rs 5,000.

Blistering pace: 6.5 crore bank accounts opened so far under Jan Dhan scheme


Banks, especially public sector and regional rural banks, are going all out to open accounts for individuals from low-income segments.

Under the Prime Minister Jan-Dhan Yojana (PMJDY), which was launched on August 28, banks collectively opened a whopping 6.51 crore basic savings bank deposit accounts (BSBDA) in just two months. 

Going by the blistering pace at which banks are opening accounts, in all probability, they will surpass the target of reaching 7.5 crore un-banked families by January 26, 2015.

Of the 6.51 crore new accounts that have been opened so far, 4.95 crore are with zero balance, as per data submitted by banks to the Finance Ministry. 

Banks mobilised deposits aggregating ₹4,857 crore from the remaining 1.56 crore new accounts. What this means is that new customers, on average, deposited ₹3,113 per account. 

Public sector banks and regional rural banks accounted for 81 per cent and 16 per cent, respectively, of the total accounts opened under PMJDY. The response of private sector banks to the Yojana has been lukewarm.

While banks went all out to open the accounts, they could not issue “RuPay” debit cards to almost half of the new customers.

RuPay cards

“With banks aggressively taking up the task of opening accounts under the PMJDY, supply of RuPay cards lagged demand. However, steps have been taken to augment the supply of cards.

“By December 15, all customers who opened accounts under the PMJDY will receive the cards,” said a senior public sector bank official. PMJDY is a National Mission for Financial Inclusion. It seeks to ensure access to financial services, namely, banking/savings and deposit accounts, remittance, credit, insurance and pension in an affordable manner.

RuPay debit card is the home-grown card payment scheme launched by the National Payments Corporation of India to rival global payment processing giants Visa and MasterCard.

Under PMJDY, the debit cards comes with ₹1 lakh accident insurance cover, and an additional ₹30,000 life insurance cover for those opening bank accounts before January 26, 2015.
The performance of the BSBDA is monitored and overdraft facility of up to ₹5,000 is given in a phased manner. 

To remain eligible for the ₹1 lakh accident insurance cover that comes with the BSBDA, the RuPay cards have to be used at least once in 45 days.

At a recent meeting, Finance Ministry mandarins told top bankers that mere issuance of cards will not suffice.
The cards have to be activated at the earliest and made operational.

Tuesday, July 22, 2014

Popularising RuPay Card - State Bank of India Initiative



The State Bank of India, the largest public sector bank started issuing RuPay cards  three months back and has realised the benefits of it.

In India, 90 per cent of credit card transactions are domestic; however, the cost of transactions is high due to monopoly of foreign gateways like Visa and Master cards.

If this process of transactions is made India-centric, cost can come down drastically. In the last 3-4 decades, the usage of credit and debit cards -- what we call the plastic money -- has increased manifold.

Their usage has actually multiplied in the past one decade due to emergence of e-commerce. We can not only make purchases of our needs from a big store by swapping our credit or debit card, we can even purchase air, train, bus ticket; or any commodity from e-commerce websites using this plastic money.

Though banking is no new business in India and credit and debit cards have been issued since long ago; however, these credit and debit cards had essentially been issued in partnership with international gateways like Visa and Master card. It is notable that Visa and Master cards make huge bucks from this business.

According to world Line India, a leading agency providing services in the field of electronic transactions, there are nearly 20 million credit cards in the country; and HDFC Bank, State Bank of India, ICICI Bank and Axis Bank are the main banks issuing most of the credit cards. Apart from this, there were 389 million debit cards in the country in March 2014.

During the last one year (2013-14) 58 million new debit cards were issued. It is notable that after the ATM machines were started being used, all banks have been issuing debit cum ATM cards to their customers, which can be used not only for withdrawing money, but also for making transactions at stores and e-commerce websites.

Foreign gateways like Master and Visa cards charge fee in lieu of their services and huge sum of foreign exchange gets transferred abroad by these companies. Due to monopoly of Master and Visa cards, a hefty fee is charged by them.

Their business in India has been increasing leaps and bounds in the last 10 years. According to RBI, credit cards transactions were Rs 1.56 lakh crore and debit cards transactions Rs 20.22 lakh crore during the year 2013-14.

Foreseeing the importance of an Indian Card, Reserve Bank of India, desired to start an Indian card and National Payment Corporation of India (NPCI), realised this desire and an Indian card in the name of RuPay was started on March 26, 2012.

Today in­­­creasingly the transactions of a majority of Indian banks and financial institutions are being facilitated by RuPay and it is giving a  tough competition to Visa and Master card. NPCI has also tied up with Discover Financial to give RuPay an international acceptance.

International acceptance 


RuPay global card is now accepted at ‘Discover Global Payment Network’ internationally. RuPay was dedicated to the nation on May 8, 2014 by the President of India, Pranab Mukherjee.

RuPay card is accepted on all ATM machines under national financial switch of NPCI. According to the NPCI data there are 1,45,270 ATMs and 8,75,00 points of sale which come under RuPay platform. In addition to this RuPay is accepted on nearly 10,000 e-commerce websites.

Banks recognised by NPCI for this purpose can issue RuPay credit and debit cards which are accepted in ATMs, Points of Sale (PoS) and e-commerce websites. As of now about 240 banks have been issuing RuPay cards. Along with this 200 cooperative and rural banks are also issuing RuPay cards, giving a boost to financial inclusion.

Kotak Mahindra Bank has started a new initiative on financial inclusion; whereby farmers of 75 cooperative societies can get payment for their milk directly to their bank account.

This model is destined to be implemented in Gujarat, where 3 lakh farmers of 1,200 societies will benefit.

It is notable for domestic sector that RuPay fee is merely one third of Master and Visa cards. Though RuPay is cost effective private banks are still not cooperating in adopting RuPay.

Around 150 lakh RuPay cards in circulation now have so far been mostly issued by public sector banks. Argument of private banks is that since they have long period tie-ups with Master and Visa Cards, they cannot adopt RuPay till these agreements expire.

Though private Indian and foreign banks know that in the long run RuPay would prove to be beneficial, they are not ready to adopt new card looking at their short term interests.

The State Bank of India, the largest public sector bank has started issuing RuPay card only three months back and has realised the benefits of the same. According to SBI officials, though it has long term agreement with Master and Visa cards, still it would be good for the bank to pay money to them and switch over completely to RuPay.

Experts believe that if only SBI adopts RuPay fully, the scheme would be a success. Although for international operations, fee of RuPay is yet to be decided, the NPCI says that it would be better to keep it low to maintain it attractiveness in international business also.

In the first week of July 2014, the secretary, department of financial services of the Union ministry of finance has written to CEOs of all the public sector banks urging them to issue RuPay cards to all new customers and the existing customers who have not been issued debit cards so far.

Banks have also been asked to install RuPay card terminals in commercial establishments. So far there is a system of issuing only one type of debit card; however if one desires to get Master and Visa card, he/she can be issued the same along with RuPay card.

Those who are used to Master or Visa card need to be lured gradually towards using RuPay as it will prove to be a win-win situation for all, as it would not only reduce cost of transactions significantly, but also increase the card penetration in the country, especially rural areas.

Monday, July 7, 2014

Government asks PSU banks to issue RuPay debit cards to customers, install POS terminals



For the first time in their 30-year existence, Visa and MasterCard, the world's largest payment companies, are facing the heat in India. Lending its weight behind the local card scheme, RuPay, the government has asked state-owned banks to issue RuPay debit cards to customers.

In a communique to banks last week, Gurdial Singh Sandhu, secretary at the finance ministry's department of financial services, "urged" CEOs of public sector banks to issue RuPay cards to all existing customers who do not have debit cards as well as to new clients. Banks have also been told to "encourage" merchant establishments to install point of sale terminals for RuPay cards, two banking sources told ET.

While banks have not been instructed to refrain from issuing cards where transactions are processed by Visa or MasterCard, there is a clear direction to promote RuPay. Customers are typically issued a single debit card per account and banks will have to pursue the unconventional practice and possibly tweak systems to issue two debit cards to a client who insists on a Visa or MasterCard that currently have greater acceptance than RuPay.

RuPay was launched by National Payments Corp of India (NPCI), set up to function as a cost-effective payment services entity. Responding to ET's query on whether PSU banks could lose rich and more brand-conscious customers to private banks (which have not received a similar direction from the finance ministry), AP Hota, MD & CEO of NPCI, said, "Such fears are unfounded. RuPay is a fully functional card payment system. We are also launching Platinum cards for HNI customers."



 "I'm not aware of the ministry's communication to banks. But as I understand, the government's focus is to promote financial inclusion," said Hota of NPCI.

For banks, it's a mandate they will have to fulfil. Within the next six months they will have to offer the new debit card to existing customers, inform thousands of branches and submit progress report to the ministry every quarter.

It's not unusual for countries and governments to support local retail payment networks that offer the software backbone and process card transactions. Countries such as Singapore and Brazil have their local payment companies while China disallows foreign payment firms to process domestic card transactions. But industry sources said an absence of a level playing field may worry global players such as Visa and MasterCard.

For MNC payment firms, the stakes are high. Every year around Rs 80,000 crore worth of debit card spends happen in India, of which 5% are cross-border transactions. It's a market that's growing at close to 35% annually. Credit card transactions, growing at over 25%, are more than two times debit card spends.

Asked whether RuPay would be accepted for transactions such as buying books and music on international e-commerce sites, Hota said NPCI was tying up with the US firm Discover Financial Services to promote co-branded cards to facilitate international transactions.


The fledging card scheme is trying to spread its footprint. So far,A 20 million cards have been issued. "It has full acceptance in ATMs, and of the 10.35 lakh POS (point of sale) terminals in the country, RuPay can be accepted in 9.87 lakh terminals. About 95% of debit card transactions are domestic in nature," said SK Gupta, chief project officer, RuPay. But not all merchant establishments are familiar with RuPay and few display RuPay stickers (along with Visa and MasterCard) on their counters. Till now, POS transactions worth Rs 40 crore have happened through RuPay.

Tuesday, May 27, 2014

Is Rupay A Threat To Global Sharks Like Mastercard & Visa?




Will Rupay become the Indian ultimatum posing a threat to global sharks like MasterCard & Visa?
The current online trasaction system does not allow the participation of all Indian banks & financial institutions in electronic payments.All we yearned for was a open loop,super-secure, multi-lateral sytem which would offer this inclusion. Kudos our very own Rupay...it offer much more!

Working towards enhancing the payment ecosystem in our country,Rupay is all set to support issuance of debit and prepaid cards by over 250 banks ,150 cooperative banks and Regional Rural Banks (RRBs) in India.RuPay functions across three channels  i.e ATMs, Point of Sales (POS) and online payments.  

Key Features:

 Faster Transaction Processing
Rupay offers simplified architecture & transaction flow thereby reducing transaction time, resulting in faster transaction processing and reduction in drop-outs.

 Security
Enhanced security measures are in place in addition to the RBI mandated 2-Factor authentication viz. registration, OTP, image based authentication and anti-phishing measures .Further the bank themed PIN pad shuffles as & when a digit is entered as an additional security measure.

 Contactless
The efficiency  of our innovative contactless payment option can be increased by employing Rupay.

Why Rupay Poses a threat to Visa & MasterCard?

 Lower cost and affordability :
Due to its domesticity, the cost of clearing and settlement  would be lower  This would make the transaction costs affordable & drive increased usage of Rupay cards.

 Customized product offering :
RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.

 Security :
Transaction and customer data related to RuPay card transactions will reside in India.  

 Right pricing-Untapped consumer segment :
Our untapped rural consumers market who do not have access to banking and financial services can be tapped into through Rupay's right pricing. RuPay cards are more economically feasible for banks to offer to their customers. Relevant product variants such as Milk Card, Kisan Card& IRCTC cards would ensure that banks target the unexplored consumer segments. 

 Inter-operability between payment channels and products :
RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms. 

 Truely Unique
Personal accident insurance and permanent disability cover of Rs one lakh is given to the cardholder.This unique feature is not available with any of the international cards Visa & MasterCard!

Monday, March 3, 2014

DK becomes first district in State to provide RuPay cards

Dakshina Kannada district became the second district in the country after Raigad in Maharashtra, to introduce the facility of debit cards to farmers and customers of the Central Co-operative Banks. 


NABARD Chief General Manager B R Chinthala launches RuPay Kisan Card at  a programme held at SCDCC Bank in Mangalore on Tuesday. DH Photo

With the South Canara District Central Co-operative Bank (SCDCC) introducing RuPay Kisan Card to the farmers, a large number of farmers with their accounts in Central Co-operative Banks in the district, who were deprived of electronic payment system facility, will now get an opportunity to use debit cards like any other customers of commercial banks. The SCDCC management, introduced RuPay Kisan Card for farmers and RuPay Debit Card for its other customers, with the assistance from NABARD, at a formal programme at the bank’s head office in the city on Tuesday.

Speaking on the occasion, SCDCC Chairman M N Rajendra Kumar said that the SCDCC was the first co-operative bank in the State to introduce the facility, wherein nearly 90,000 farmers with Kisan Credit Card will avail the facility of debit card. Micro ATMs ill be placed in all the 166 primary co-operative societies and in their branches, and in all the branches of the SCDCC Bank, enabling the RuPay Kisan Card holding farmers and RuPay Debit Card holding customers to swipe and withdraw or deposit money in their account.
Farmers who have availed Kisan Credit loans can open an account with the SCDCC Bank through Primary Co-operative Societies and make use of the debit card facility.

Aadhaar number can be linked to the same account, for availing the government subsidy facilities. The account holders can use the debit card in any of the ATM machines with RuPay symbol. The SCDCC Bank has plans to introduce internet banking and inter-bank mobile payment system in the days to come, Rajendra Kumar said.

NABARD extends support

Launching the facility, NABARD Chief General Manager B R Chinthala said that the Central government has directed the NABARD to introduce core banking solutions or electronic payment systems in all the Central Co-operative Banks at the earliest.

Though debit cards were first introduced in a co-operative bank in Raigad in Maharashtra, Dakshina Kannada is the first district to introduce the facility in a full-fledged manner.

“If such facilities are not offered to customers, there is a danger of CCB customers, migrating to commercial banks. Therefore, the NABARD intends to introduce the facility in all the CCBs of Karnataka within six months, following the footprints of Dakshina Kannada. The NABARD has extended a financial support of Rs 1.75 crore to the SCDCC Bank for introducing debit card facility and we are ready to offer the required amount to any of the co-operative banks in the State,” he said.

Further, he said that the RuPay system was more advantageous for the banks in cost cutting, as the banks normally shell out Rs six per transaction to the US based companies, in Master and Visa cards.

The RuPay gateway system is designed by the Government of India, and the banks need to shell only 40 paise per transaction. The government has entrusted the NABARD, the task of ensuring that all co-operative banks are brought under RuPay.

“The RuPay cards are not just restricted to transact business from ATMs of co-operative banks or Point-of-Sale (POS) machines, but also enable the transaction of commercial establishments anywhere.

RuPay Kisan Cards
and RuPay Debit Cards were symbolically distributed to five farmers and five customers, on the occasion.

Wednesday, October 23, 2013

Insurance cover coming for online fraud - Rupay Card


Both Visa and MasterCard offer this feature. RuPay cards by NPCI will also start offering this by the end of this year or early January,

With the rise in cases of online fraud, National Payments Corporation of India (NPCI) has decided to provide an insurance cover for such transactions.

NPCI will tie up with general insurance companies for this; it has called for a Request For Proposal (RFP). This would cover both domestic and international transactions, all those done by swiping a card, PIN-based transactions on ATMs or points of sale and e-commerce transactions with two-step authentication.

According to the Kaspersky Consumer Security Risks Survey, a global study conducted by B2B International and Kaspersky Lab in the summer of 2013, about 41 per cent of users who lost their money as the result of financial cyber-fraud failed to get a single cent returned to them. And, only 45 per cent of users who suffered through online fraud were fully compensated. In 17 per cent of cases the money disappeared during e-banking sessions; 13 per cent of the victims were customers of online stores.

“Technology is changing the fraud landscape and challenging the boundaries of fraud risk management. The (earlier) frameworks to mitigate simple frauds are no longer effective,” Rohit Mahajan, partner and co-head, forensic services, at KPMG in India, had said while issuing an India Fraud Survey last year.

The NPCI insurance cover will be over and above any policy taken by a member-bank. The policy will cover compromised and disputed transactions carried on the National Financial Switch (which facilitates inter-bank ATM transactions) ATM Network. It will also cover disputed transactions on the NFS Network. The RFP issued by NPCI is to identify and appoint the general insurer for providing insurance cover for fraudulent transactions that result in financial loss to the customers of NFS members or sub-members; also for non-bank ATM operators.

“This is a good opportunity for the insurance community. We will be interested in taking part in the bidding process, since it is a large and prestigious contract,” said a senior official of a state-owned general insurance company.

NPCI will initially cover Rs 180 crore of approved financial transactions under the insurance policy with the selected bidder. If the transaction volume goes beyond the initial committed volume of Rs 180 crore, NPCI shall request an additional cover.

The overall insurance cover that will be provided will be Rs 10 crore and the per-card cover will be Rs 50,000. The insurer (which wins the bid) will have to settle claims within 30 days of claim submission by NPCI. Further, the bidder will also have to honour the request from any member-bank(s) for any additional cover sought, once the policy is issued to NPCI and is in force. The premiums will be paid by NPCI.

To be eligible for the bid, an insurance company should have a minimum of three years of operations in general insurance in India as on March 31. Also, a minimum gross direct premium income of Rs 250 crore for 2011-12 and 2012-13, respectively. The non-life insurer is also required to have a minimum claim settlement ratio of 75 per cent in the past three financial years and not be currently blacklisted by NPCI, any government body or financial institution in India. All this would mean only the large private general insurers and the four state-owned general insurance companies will be eligible.

In case of a disputed transaction using a debit/credit card, it is the customer's responsibility to prove he is not at fault. Till then, they are liable to pay for the transaction. As a protection against this, one can opt for credit or debit cards which have the zero-liability feature. Both Visa and MasterCard offer this feature. RuPay cards by NPCI will also start offering this by the end of this year or early January, said an official.

Monday, October 21, 2013

Banks yet to cut debit card fee at fuel pumps - Rupay Card

A year after the Reserve Bank of India (RBI) announced a cut in charges on debit card transactions, banks continue to impose a fee of 2.5% for payments at petrol pumps, thereby making an undue gain at the cost of the consumer. Earlier this month, large banks thwarted an attempt by the RBI-promoted National Payments Corporation of India (NPCI) from capping charges on debit cards that are part of NPCI's Rupay network.

Last year, RBI asked banks to cap the charges on debit card transactions at 0.75% for transaction values up to Rs 2,000 and 1% for larger transactions. But in debit card transactions at petrol pumps, banks continue to impose a 2.5% surcharge, which are mostly passed on to the consumer.

Sources said that NPCI had sent a communication to banks asking them not to charge more than 1% on its Rupay cards. Rupay cards were introduced by NPCI as India's answer to MasterCard and Visa. Sources said that the move has been stymied by banks who have called for more discussion on the issue.





The 2.5% surcharge has its origins in the days when credit cards were in their infancy and debit cards non-existent. Typically, when a bank installs a credit card swipe machine at a retail outlet, its agreement with the merchant bars any kind of surcharge being passed on to the customer.

But in the case of petrol pumps and Indian Railways, an exception was made allowing them to pass on the charges (described by banks as 'merchant discount rate'), to the customer. The exception was made to end an impasse where these government entities were refusing cards on the grounds that their margins were too low to absorb the credit card charges of 2.5%.

RBI, while slashing charges on debit cards, had used the rationale that the transaction cost of credit and debit card should not be identical. This was because credit card transactions required the bank to provide free credit to the customer until the monthly bill was issued. The bank also took on the risk of the customer defaulting on his obligations.

In debit cards, the money goes straight out of the customer's bank account and the only expenses are on account of using the network and in respect of security of transaction. In the West, regulators have already started capping charges on debit card transactions.

Bankers say that a huge transformation is taking place in payments as debit card transactions are set to outstrip payments by credit cards in coming years. In July 2013, banks saw 4.23 crore credit card transactions as against 5.24 crore debit card transactions. In value terms, however, credit card transactions continue to be higher at Rs 11,038 crore as against Rs 7,722 crore under debit. With the focus now on financial inclusion, the number of debit cards and set to go even higher.
 

Wednesday, May 1, 2013

'Desi' alternative to VISA, Mastercard from July

http://www.deccanherald.com/content/329727/039desi039-alternative-visa-mastercard-july.html

Come July this year, the National Payments Corporation of India (NPCI)'s RuPay debit card will go 'global' in a strategic tie-up with an American card issuer, Discover Financial Services (DFS) which will offer international acceptance of the card.

With this, RuPay will emerge as an alternative of international payment gateways like VISA or Mastercard and wants to make substantial difference in payment landscape.

In an interview to Deccan Herald, NPCI Managing Director & CEO A P Hota said both RuPay and the US firm DFS would stand to gain from this partnership due to extended distribution network of their respective cardholders. DFS is a banking and payments services firm that competes with payment companies such as Visa and MasterCard, even as it owns the card company Discover, Diners Club cards and Pulse ATM networks.
Unlike Visa and MasterCard, which partner banks to enable them issue cards with similar features, Discover adopts a philosophy of partnering local payment networks across the world, Hota pointed out.

“Also, the RuPay Card is leveraging upon EMV technology of Discover to issue global cards. Cards, terminal and host specifications for the RuPay global cards have already been released to the pilot-member banks. Issuance of RuPay global cards will commence in July with two banks,” he said.

Further, Hota said NPCI has spent over Rs 100 crore on RuPay card scheme infrastructure which is geared to serve all customer segments, across payment channels and form factors.  RuPay, according to him, has clearly defined product roadmap keeping both domestic as well as international needs of prospective customers and banks. 

Under the strategic alliance, Hota added, NPCI and DFS have already announced operationalisation of acceptance of Discover and Diners’ Club cards in India on NPCI’s NFS (National Financial Switch) network. Accordingly, Discover and Diners Club cards now are accepted at over 85,000 DFS ATMs across the country, NPCI chief said. In the coming months, RuPay global cards will be issued and accepted on the Discover, Diners Club International and PULSE networks for international purchases and cash access outside India. This will be followed by the acceptance of Discover and Diners Club cards access at point-of-sale (PoS) terminals for purchases in the country.

NPCI started its services providing cheaper access to third-party ATMs by setting up a network with very low transaction charges coupled with strong support from the Reserve Bank of India. Giving a macro perspective, Botha said, so far 25 commercial banks, 25 regional rural banks, and 30 urban co-operative banks have issued over 1.5 million RuPay cards.  From readiness perspective, all the ATMs in the country are integrated with RuPay.
On financial data, Hota said the project was initially conceived by the RBI and was taken forward for implementation by Indian Banks Association in March 2012.

"We would be able to break-even in this project in five years from when we commenced, which is by financial year 2017-18."  NPCI Board is headed by Infosys Technologies' emeritus chairman N R Narayanamurthy with nominees drawn from RBI and 10 core promoter banks -- State Bank of India, Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, ICICI Bank, HDFC Bank, Citibank, HSBC.

Monday, January 7, 2013

At IIT-Bombay, tech takes the cash out of shopping

The technology being used is near field communication, where devices establish radio communication with each other by touch or bringing them into close proximity.
Imagine a world where you don’t have to worry about running short of cash every time you pick up your breakfast cereal from the neighbourhood grocery or fret about change while getting a cup of coffee!
A cashless world is no longer a theory at the Indian Institute of Technology-Bombay (IIT-B). Thanks to a novel initiative, shopping here is all about a tap on their mobile phones.
The “virtual wallet” is a pilot project launched by ItzCash, Rupay and Canara Bank. “A person just has to use a ‘tag’ on any personal belonging like a mobile phone or an ID card and make payments at shops in the campus through it,” said Vaibhav S. Joshi, Head, Government Business, ItzCash.
About 2,000 students are using this cashless card initiative since its launch in September last year. “This is the first time that we have introduced the system in an educational institution. We aim to extend it to 4,000 students in the next few months,” Joshi added.
ItzCash plans to expand the cashless card system to other IITs and corporate campuses soon.
There are three active reloading spots and 35 stores enabled with this technology at the IIT-B campus. Through this system, students can, among other things, make day-to-day purchases, such as books and stationeries, and settle canteen bills.

The tech in use

The technology used is near field communication (NFC), where devices establish radio communication with each other by touch or bringing them into close proximity.
Countries such as Germany, Austria, Finland, New Zealand and Italy have tested NFC in ticketing systems for public transport, while China has implemented it in bus services across the country. Still at a nascent stage in India, NFC technology is now being explored as a new medium of transaction, which may gradually eliminate the usage of smaller currencies.
It costs the Government nearly a rupee to print a currency note of Rs 10 denomination and Rs 1.79 to make a Rs 100 note, according to information provided by the Reserve Bank of India.

Challenges

The pilot project at IIT-B campus has had some teething issues in setting up a smooth transaction process. “Enabling device and application readiness and handholding merchants to move to this new automated system were some of the initial challenges that we faced,” Joshi said.

Corp Bank launches Aadhar linked card

Corporation Bank launched a new product – Corp RuPay Aadhar Card on Friday. This product is primarily aimed at providing easy and hassle free banking services to the financially excluded and underprivileged sections of the society who have an Aadhar number.

The card can be used at the conventional ATMs, at micro ATMs or the hand held machines used by Business Correspondents and at Point of Sale (PoS) terminals at Merchant Establishments.

The card was launched at o‘Vivek Darshan’ – a musical monologue on Swami Vivekananda’s life, philosophy and thoughts in commemoration of his 150th birth anniversary, at Dr T M A Pai International Convention Centre in Mangalore on Friday.

The musical monologue was performed by Shekhar Sen – a renowned singer, music composer and actor.

Inaugurating the programme, Corporation Bank Chairman and Managing Director Ajai Kumar said, “Swami Vivekananda represents a hope for a resurgent India. Indian Renaissance can truly be said to have begun with him.

'Vivek Darshan’, a tribute to Swami Vivekananda to commemorate his 150th birth year, is a unique ode to this great son of the nation in the form of musical monologue on his, life, philosophy and thoughts.
Corporation Bank intends to create awareness about Swami Vivekananda with the objective of motivating the youth to be confident and action-oriented,” he said.

Kumar also released a booklet in Hindi and English on the philosophy and teachings of Swami Vivekananda on the occasion.

The Bank also released financial support to Shri Ramakrishna Ashram (Mysore) Hope Trust (Kannur), Lady Goshan Hospital (Mangalore) and Navchetan Trust (Mangalore). Executive Director Amar Lal Daultani was present.