Showing posts with label rupay. Show all posts
Showing posts with label rupay. Show all posts

Saturday, March 18, 2017

How RuPay Card Become the Best Credit/Debit Card of India

RuPay is India’s home grown card scheme, brought to reality by the National Payment Corporation of India.  Founded on March 26, 2012 it competes with the likes of Visa and MasterCard. Currently RuPay has a market share of around 35%, making it the second largest card scheme in terms of numbers (Visa has over 50% of the cards in the market). In this post I will be discussing about RuPay cards.

RuPay
The name has come from two words Rupee and Payment. The three colors orange, green and blue with a white background speaks for itself (Colors of the Indian National Flag).
Coined from two words Rupee and Payment
RuPay Logo
Orange and green in the logo shows that the nation is moving towards growth supported by a fast paced service to the growing nation. Blue indicates trust, peace and security which the people get as a feeling when they own this card.

NPCI
National Payments Corporation of India was formed in December 2008 and promoted by
  • State Bank of India (SBI)
  • Punjab National Bank (PNB)
  • Canara Bank
  • Bank of Baroda (BoB)
  • Bank of India (BoI)
  • Union Bank of India (UBI)
  • Investment Credit and Industrial Corporation of India (ICICI Bank)
  • Housing Development Bank of India (HDFC Bank)
  • Citi Bank
  • Hongkong Shanghai Banking Corporation (HSBC Bank)
It provides services like NFS (National Financial Switch), the Immediate Payment Service (IMPS), National Automated Clearing House (NACH), Aadhaar Payment Bridge System (APBS), RuPay, etc.…
National Payment Corporation of India
The Vision, Mission and Values of NPCI

What motivated NPCI to start RuPay Cards?
As RuPay cards is completing three years in the Indian Market, it is necessary to know what made National Payments Corporation of India to start RuPay cards.
  • Near Duopoly by Visa and MasterCard: – The two giants have dominated the electronic payment market in India. Over 95% of the transactions in India were done over these gateways.

Visa and MasterCard issued in India
Visa and MasterCards issued in India

  • Non-Issuance of ATM cards by small and co-operative banks: – As Visa and MasterCard charge exorbitant fees from the banks as joining fees, most banks did not find it viable to invest a huge sum to provide ATM services.
  • Charge from the customers: – Some retail outlets, charge around 2% per transaction from their customers as outlet owners find it difficult to make their business viable by paying huge transaction fees.
  • Motivated by China’s Union Pay and Japan’s JCB: – These are two payment gateways run by their respective governments, have helped them achieve their goals with their sincere efforts. China’s Union Pay is the world’s second largest payment scheme in terms of transaction value.
  • To serve the RBI’s vision to provide a domestic, open loop and multilateral system in electronic payments to all banks and financial institutions in India.

Benefits of RuPay Cards
  • Low transaction costs: Transaction through RuPay is 90 paisa per transaction irrespective of the value of the transaction. This fee is charged collectively from the merchant’s bank account and card issuer’s bank. Visa and MasterCard charge around 2% per transaction.
  • No Joining fees: Unlike Visa and MasterCard, RuPay doesn’t charge a single penny for joining the RuPay Payment Scheme.
  • Quicker transactions: As the transactions are done locally, the settlement process is faster than its rivals.
  • Data: Customer information is not let out to other countries as the data is secured in India locally.
  • EMV: This stands for Euro Pay, MasterCard and Visa which have set up standards to provide high class secured chip based cards. RuPay has partnered with Discover Financial Services (DFS) to provide EMV based RuPay cards. These cards demand a pin for completing the transaction at every Point-Of-Sale (POS).

Partners
  • A partnership was struck between Discover Financial Services (DFS) and National Payments Corporation of India (NPCI) such that Discover and Diners Club cards are accepted in all NFS ATMs in India and RuPay Global cards would be accepted for international purchases and cash transaction at Discover, Diners Club and PULSE network across all POS terminals worldwide. (They have over 25 million merchants worldwide in almost all nations in the world).
  • NPCI has partnered with Acculynk to provide secure encryption and authenticated consumer PIN for all its customers for e-Commerce purchases under the brand RuPay PaySecure.
  • Indian Railway Catering and Tourism Corporation (IRCTC) has partnered with Union Bank of India (UBI) and NPCI to book tickets and other services using RuPay prepaid cards which have a top-up limit of Rs. 50,000.

RuPay Prepaid Cards
IRCTC has partnered with UBI to launch RuPay Prepaid Cards

  • Japan Credit Bureau International (JCBI) and NPCI have entered into an alliance in which JCB cards would be accepted at all POS terminals and NFS ATMs in India in return for which the NPCI member banks can issue RuPay/JCB cards which would be accepted at all POS terminals in the JCB network worldwide.
  • China’s Union Pay and NPCI have struck a deal such that CUP cards will be used at all RuPay POS terminals in India.
  • Partnership of NPCI with Oxigen group to launch OxiCash Money Transfer which makes Oxigen Wallet India’s First Non-banked Mobile Wallet to provide Instant Money Transfer Service without hassles.

Pradhan Mantri Jan-Dhan Yojana and RuPay
Shri Narendra Damordas Modi, on his first Independence Day speech declared scheme for bringing about financial inclusion in India by bringing the un-banked population in the banking ecosystem. Features what an account holder would receive
  • Zero balance Account.
  • Free RuPay Debit Card.
  • Rs 1, 00,000 life cover and Rs 30,000 accidental cover by Life Insurance Corporation of India (LIC).
  • Overdraft facility of Rs 5000 for each account.
RuPay Payment Scheme benefitted the most from this scheme. The adoption of RuPay cards increased drastically in India making it the second largest Payment Card in India with around 35% market share. Over 25% of the transaction in India is done using RuPay cards across ATMs, POS terminals and e-Commerce Platforms.

IMG_0505
Outdoor Advertisement of RuPay Platinum Cards for foreign business travelers on Airport Road, Bangalore

Achievements
Ø The duo-poly in India is now a story of the old. Now there are three significant players in the payment card market, namely Visa, MasterCard and RuPay in India.
Ø It has 18 prepaid instruments on board who issue RuPay prepaid cards.
Ø RuPay cards are issued by 27 Public Sector Banks, 13 Private Banks and over 250 Co-operative & Gramin Banks. RuPay was a boon to the co-operative banks and its customers due to minimal cost in issuing RuPay cards.
Ø It has won many laurels for itself like “Renaissance Skoch Award” for building country’s own and the fastest adopted card system in the world.
Ø It has broken all records by building a payment gateway in less time, whereas it usually takes around five years to make a fully functional payment system.
Ø It has partnered with Kochi Metro to provide RuPay card services at all its station in the metro network.
Ø RuPay debit cards were issued by the Punjab Government to all commission agents for quicker payments through the ‘Kisan Arthia Information and Remittance Online Network’.
Ø RuPay prepaid cards were issued to AMUL farmers under the brand ‘Kotak Samriddhi’ for direct transfer for their daily produce.

Sunday, January 22, 2017

Centre pushes for fingerprint money transactions through Aadhaar Pay



Keen to push digital payments among the poor and illiterate in rural areas of the country, the government is pushing to popularise Aadhaar Pay which ensures financial transactions by just using fingerprint.



Aadhaar Pay, which is merchant version of the already in use Aadhaar-enabled payment system (AEPS), will become an alternative for all online and card transactions which require password and PIN.



The app facilitates merchants to take cashless payments from a customer who is only required to give his Aadhaar number, name of the bank (from where the money is to be deducted) and finger print for authentication. Unique Identification Authority of India (UIDAI) CEO AB Pandey said Aadhaar Pay works on any android-based phone, even a low cost one, with an attached finger biometric device.



"This ensures digital transactions which are cardless, PINless... There is no need of smartphone for the customers," he added. In order to popularise the use of Aadhaar Pay among merchants, the government has asked banks to enrol 30-40 merchants per branch so that they are able to take cashless payments from customers.



At present five banks — Andhra Bank, IDFC Bank, IndusInd Bank, State Bank of India and Syndicate Bank — have gone live over Aadhaar Pay and several banks are in the process of launching pilots on the app.



A senior official said the plan is to identify Aadhaar Pay transactions separately and to incentivise merchants for long-term sustainability and scalability of the system. As it needs a biometric device costing about Rs 2,000, the government is also working on an incentive model so that cost of the device is amortised over time and the merchants are encouraged to use it.

Rejecting security concerns over AEPS, the UIDAI CEO said transactions using Aadhaar Pay are much more secure than any other digital mode of transaction, both in terms of technology and process. Besides the merchant using the app being enrolled in the bank and the customer's bank account linked to Aadhaar, he said the biometric data get encrypted leaving little scope for any misuse. 

"Fingerprints can't be copied as it get encrypted. Even if any merchant or customer tries to misuse the fingerprints, he will be caught immediately as the location of merchants using the app is known to the bank," he explained.



The AEPS platform, launched in December 2012, enabled people to carry out banking transactions over hand-held devices (micro ATM) using the Aadhaar number and fingerprints. The Andhra Pradesh government has launched cashless payments at most of the fair price shops (FPS) and Gujarat, in partnership with CSC e-governance, has launched cashless payments using AEPS platform at over 3,000 fair price shops.

Wednesday, September 21, 2016

NPCI aims to corner 50% share of debit card market



 Digital payments in India are likely to create a $500 billion ecosystem by 2020, according to a report by BCG and Google released in July. Photo: Reuters

The National Payments Corporation of India (NPCI) is targeting a 50% market share in debit cards by 2018 through its RuPay network as it ties up with banks and more Indians get access to banking services.


The payment services provider is also planning to introduce new products such as an electronic toll-collection system, contactless tap-and-go cards and credit cards in the next three months to boost its share of consumer wallets.

“We are aiming for 320 million debit cards by March 2017. In a year after that, we will constitute about half of the total market,” said A.P. Hota, managing director and chief executive officer of NPCI.

At the end of July, the number of debit cards issued by Indian banks was 688.2 million. NPCI claims that 290 million, or 37%, use the RuPay card payment settlement system. The rest are serviced by Visa and Mastercard.

“When you include commercial banks and cooperative banks, there are about 1,600 banks in India. Of this, we have tied up with 700 banks already, which has helped us cover most banked customers,” Hota said.

On Monday, the company said that 46 new banks had joined its list of shareholders, taking the total to 56.

The number of debit cards issued in India has increased two-and-half times in the four years up to March 2016 with the introduction of the Jan-Dhan Yojana. However, at least 190 million cards issued under the scheme have seen very few transactions as the cardholders belonged to rural areas and lower income segments, according to a 11 March JM Financial Ltd report.

NPCI is also introducing three new products before the end of this calendar year. The first is an electronic toll-collection system likely to be launched by 31 October. This will be available across 395 toll collection plazas on national highways in its first phase. The toll plazas will have terminals that will verify vehicles on the basis of a device, which will automatically debit money from a prepaid account. State Bank of India, ICICI Bank, Axis Bank and IDFC Bank are on board to issue electronic toll-collection devices across toll plazas, said Hota.

NPCI officially launched the Unified Payments Interface (UPI) in April, allowing banks to develop applications in a way that will let customers to instantly transfer money to each other. This is widely expected to transform the payments business in India, as customers do not need to exchange bank account details to transfer money.

Another product is a contactless tap-and-go card which can be used to make small value payments, likely to be launched in November. NPCI is also looking to launch credit cards by December.
It has currently tied up with 10 banks and is looking to issue a minimum of 5 million cards initially, Hota said.

Discussions are currently on to finalize charges and other product details, he added, without disclosing the names of these banks as final agreements had not been signed.

“Digital payments are the future for us and NPCI has done quite a bit in improving the environment that supports it. It shouldn’t be longer than 18-30 months before we see explosive growth in these transactions,” said Alpesh Shah, senior partner and director at consulting firm BCG.

Digital payments in India are likely to create a $500 billion ecosystem by 2020, according to a report by BCG and Google released in July. Most of this would be due to better peer-to-peer transactions, the report had said.








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.

Tuesday, February 9, 2016

RuPay cards gaining currency among the poor


More than half the 20.19 crore people who have opened basic bank accounts under the Prime Minister Jan Dhan Yojana have activated their RuPay cards and are using them regularly.
About 90 million RuPay cards – envisaged as a home-grown debit card for the economically weaker sections – are being used in the interoperable system of ATM network facilitated by the National Financial Switch alone, “which is a significant indicator for transactions in these accounts,” AP Hota, Managing Director and Chief Executive Officer, National Payments Corporation of India (NPCI), told BusinessLine.
So far, 170 million cards have been issued to all eligible accountholders. If one also includes use of RuPay cards in their own bank ATMs, the number of active cards in use will cross 100 million. “The combined number of cards in use could be much higher,” Hota said.
The number of RuPay transactions, too, has been increasing steadily. For example, from 20 lakh transactions a day about two-and-a-half months ago, the number has gone up to about 27 lakh, according to NPCI data. The average transaction value is about ₹2,000.
In the last three months, about three crore new accounts were added across the country.
Government data show that the as on January 13, the total balance in these accounts has crossed ₹30,000 crore.
According to a senior executive of State Bank of India, while banks have almost stopped campaigns for new enrolments, people continue to open accounts voluntarily.
Key impetus

New account enrolments are being spurred by, among other reasons, the increasing awareness about the social security cover that accountholders get.
Under the scheme, the RuPay card comes with an inbuilt accident insurance cover of ₹1 lakh for up to 90 days after the cardholder carries out a successful financial or non-financial transaction at a merchant establishment, an ATM or an e-commerce platform.

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, November 9, 2015

Add-on insurance edge for RuPay



The National Payments Corporation of India (NPCI), which developed the country's home-grown card payment system RuPay, has attributed the system's rapid growth to the insurance cover it provided to its card-holders.

Rupay, which became operational from 2012, have rolled out 206 million cards (as of September-end), acquiring a sizeable market share within a short time.

Of the 206 million cards, 160 million is for bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY).
"The opportunity was given because of RuPay's inherent strength," said A.P. Hota, CEO and managing director of NPCI.
"The government had weighed and evaluated all card payment systems. At that time, the RuPay card had an inbuilt accident insurance of Rs 1 lakh. When the PMJDY scheme was launched, it was thought that along with the opening of accounts let people have an access to accident insurance. Then (Jan Suraksha) insurance schemes were not present. So, the government chose RuPay by its intrinsic strength," Hota said.

RuPay competes with Visa and MasterCard in India.

Hota said NPCI's non-profit characteristic was another factor behind its growth.

"NPCI is not a profit-making company. All operational benefits go to the same banking community who pays the fees," he said.

Hota said the revenue stream from its different verticals - card payment, Aadhar-based services and mobile-based interbank immediate payment service (IMPS) - were adequate to fund the introduction and upgradation of the payments technology.

Mobile payments

NPCI is working on upgrading and simplifying the existing IMPS system, which is likely to take shape by January.
"In IMPS you can send money instantaneously. But suppose one would like to collect money instantaneously. That would be possible in the new system. We have also tried to dissociate authentication and identity verification. Registration formalities have been tightened. Also, the payment processing service provider is not necessarily your bank. An account can be with one bank but the transaction routing can be through another bank," Hota said.

Eleven banks, including Union Bank, United Bank of India, Bank of Baroda, HSBC, HDFC and ICICI have shown interest in participating in the project. NPCI is also in talks with the SBI, which has the largest bank network.

"This requires regulatory clearance. For the last 45 months we have been in touch with the regulator and are clarifying their questions. We hope to secure approval soon. We will start with a few banks and expand gradually," he said.
NPCI is in the process of bringing in district co-operative banks and regional rural banks under the IMPS network.

RuPay forces MasterCard to call for fair competition


Facing stiff competition from India's own payment gateway RuPay, MasterCard has called for a level-playing field to stay put in the Indian market.

"It is great that the government is opening up the market. But the market should be driven by competition rather than mandate-driven competition," said Ravinder S Aurora, MasterCard group head and senior vice-president.

RuPay, which is run by the National Payments Corporation of India, gained traction in the local market ever since banks started opening accounts under the Pradhan Mantri Jan Dhan Yojana. 

About 154 million RuPay cards have been issued to new non-frills account holders under the PMJDY programme, to add to the 40 million existing RuPay debit cards with regular bank customers. Ru-Pay, which was conceptualised by the Reserve Bank of India in 2009, has cornered about one-third of the market with a of 580 million. China has a similar indigenous card called the Union Pay of China. 

To thwart competition, Aurora said that MasterCard is focusing on innovation and advanced technology for better security features. Not too long ago, MasterCard and Visa Card were predominant in the Indian market, which is now almost equally shared by RuPay and the two global payment solution providers in terms of number of cards issued. 

Bankers said that issuing RuPay cards is cost-effective for them as the fees associated with it is typically lower than the charges levied by Visa or MasterCard. Aurora said that about 10% of MasterCard's global business comes from India. It had invested $250 million in India last year.

It has tied up with E-lala, the ecommerce portal being promoted by Confederation of All India Traders. 


PM Modi emphasizes on Financial inclusion

PM Modi emphasizes on Financial inclusion

Prime minister Narendra Modi has said real development in the country means bringing positive change into the lives of the common man and eradication of poverty. 

While addressing the Delhi Economics Conclave in New Delhi on the economic and institutional reforms introduced by government, Prime Minister asked economists to deliberate and find 'out-of-the-box' sustainable solutions. 

'Reform to transform' that was the mantra Prime minister Narendra Modi shared at the Delhi economics enclave. 

He stressed on the fact that while talking of reform, it is important ask two critical questions: 

REFORM FOR WHAT? and REFORM FOR WHOM? In answer to the the second question Narendra Modi reiterated his government's motto of Sabka Sath Sabka Vikas. 

The theme of the Conclave this year is 'Realising India's JAM -Jan-Dhan Aadhar Mobile. It seeks to explore ways to improve the subsidy procedures. The PM has given an all-new meaning to JAM saying it stands for JUST ACHIEVE MAXIMUM. 

While speaking on the reforms, PM said that 19 crore people have been connected with the banking system under the Jan Dhan Yojana in just a few months. 

26000 crore rupees has been deposited in these accounts and the Rupay Card facility is now being used by 36 percent of the population. 

Under Pradhan Mantri Mudra Yojna, 60 lakh people have been issued loans worth Rs 38000 crores. 

1.25 lakh bank branches have also been given the target of issuing loans to at least have one dalit and one woman to achieve true financial inclusion. Around 12 crore people are benefiting from these programs. 

The PM said that the economy of the country is strong and taking it to greater heights is not a short-term task but a long term objective. 

Highlighting the achievements of his Government, he said-Soil health card is slowly transforming the destiny of farmers, transparent auction processes is helping in curbing corruption. 

In a push to infrastructure development, 26 KM roads are being constructed per day now as compared to 5 KM per day earlier. 

Referring to cooperative federalism in action, the Prime Minister said economic and even foreign policies are now developed in consultation with Chief Ministers. 

He also referred to the Swachta Abhiyaan which the country has adopted, leading to both economic reforms and improving the country's image in the world. 

Friday, August 7, 2015

NPCI ties up with JCBI to issue RuPay card in India




Japan’s JCB International and National Payments Council of India (NPCI) have entered into a strategic partnership for JCB Acceptance and Card Issuing in India.

NPCI provides RuPay, a domestic card payment network countering Visa and MasterCard.
The agreement, which will initially enable the JCBI cardholders to transit in all ATMs and credit card swipe machines in India, will eventually enable the Indian issuers to come out with cards that can be accepted globally without going through the visa or MasterCard network.

In the first stage of the agreement between the JCBI and NPCI, over 10 lakh card-accepting terminals and 2,00,000 ATMs across India will be made available to the JCBI cardholders.

Around 165 million RuPay domestic cards have been issued by 426 banks in India.

“The visitors from Japan are many and the economic relationship is emerging and growing. Since we have built the massive infrastructure with the cooperation of the banks, the network must be of privilege. We would like to support the member banks so that their infrastructure will be utilized to the maximum,” said A.P. Hota, Managing Director and CEO, NPCI.

India is a growing economy and JCB considers it to become one of the world’s leading consumer markets.

The debit and credit cardholders in the country are also growing steadily.

“We believe our extensive card acceptance network and customer oriented services across the world will be a strong feature of RuPay/JCB international cards. We would love to by-implant important product in promoting RuPay cards throughout the world and contribute to the NPCI member banks by providing unique and expensive values of JCB Brand,” said Kimihisa Imada, Deputy President, JCB International Co.

Japan is also finding new partners in the manufacturing sector.

Yamaha showcased the newly developed linear conveyor module for manufacturing line at a recently held Manufacturing World Japan expo.

Comparing to conventional conveyor, the linear conveyor can freely manipulate a slider on which the products are moved. It achieves more advanced convey.

“This is already used in factories across Asia, including in Thailand and China. It is suitable for large-scale production like manufacturing mobile phones,” said Nagashima Ryuzo, Sales Office Manager, Yamaha Motor Co. Ltd.

Suga Systems Inc. showcased a 3D printer called “LOGSITE”, a suitable product for business or educational purpose. The printer is equipped with special heater for quicker production.

“I have been involved in making 3D printers from the beginning of this industry. With that knowledge, we especially want to put focus on educational industry like introducing this machine to schools and raise the level of Japanese manufacturing industry,” said Tokuzo Suga, a representative of Suga Systems Inc.

The Japanese companies are fast expanding their base by joining hands with local companies throughout Asia. It not only helps the Japanese firms to grow, but also helps them in introducing advanced technology to their partner firms in the Asian subcontinent.

Friday, June 12, 2015

Banking on the RuPay

The recent Jan Dhan Yojna has given RuPay a big boost as every account-holder is getting the RuPay card.

 

NPCI had brought to life RuPay debit cards in 2012.

It was recently revealed by the National Payment Corporation of India (NPCI), a government agency, that RuPay-branded credit cards would be launched in less than 10 months from now. Lalatendu Mishra and S. Varadharajan have this explainer on RuPay: 

What is RuPay?
RuPay is India’s own card payment scheme. Like all other card payment schemes, notably Visa and MasterCard, it was created to ensure cashless transactions. The scheme was conceived by NPCI, an initiative of the Reserve Bank of India and an umbrella institution for all retail payment systems in the country. 

Why the name RuPay?
RuPay is a play of the words rupee and payment. It was originally called IndiaPay. 

So, you can do with RuPay what you can do with other cards?
Yes, you can use them at ATMs, as well as while shopping both online and offline. 

How does any card system work?
Imagine you are paying for your grocery purchases at a supermarket using your card. When your card is swiped, the seller’s bank submits the transaction through a card payment network (the likes of Visa or RuPay) to the bank that issued your card in the first place. The card payment network forms the middle layer connecting the card issuing bank and the seller’s merchant bank. 

When there are other such systems already, why one more in the form of RuPay?
RBI wants to back a domestic card system with a few goals. One, provide affordable electronic transactions for local banks. Two, promote financial inclusion. The idea of a domestic card is to break the dominance of international majors such as Visa and MasterCard.
The website of NPCI also lists as a benefit the fact that transaction and customer data of RuPay users will stay in India. 

Where are RuPay cards accepted?
They are accepted at more than one million points of sale terminals. Over 20,000 online merchants accept RuPay cards. Internationally, RuPay cards can be used at all Discover & Diner PoS and ATM networks. 

How affordable are RuPay cards for banks?
Banks pay higher transaction fee in case of foreign cards such as Visa and MasterCard. Since the transaction processing of RuPay happens domestically, it leads to lower cost for clearing and settlement of transactions. According to NPCI officials, the cost is around one-third of the fee charged by foreign card brands. 

How much does NPCI charge for use of RuPay?
For use at ATMs, banks are charged 45 paise per transaction and 90 paise per transaction at point-of-sale in merchant establishments or e-commerce platforms, irrespective of the transaction value. Other card systems charge more in case of high value transactions. 

What is RuPay's market share in India?
According to information in the Finance Ministry’s website, around 14 crore RuPay cards have been issued till date. Out of the 50 crore debit cards and two crore credit cards in circulation, this works out to about 27 per cent. And, this number has been achieved in less than three years. Out of the 14 crore cards issued, 55 per cent are active, according to Finance Ministry data. The recent Jan Dhan Yojna has given RuPay a big boost as every account-holder is getting the RuPay card. The direct benefits transfer scheme has also helped in making the RuPay cards active.