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

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.”

  • 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.

Tuesday, December 16, 2014

Jan Dhan Yojana Beneficiaries Face ATM Access Shortage; Cap On Transactions Risks Scheme

As more people are brought under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, their ability to access cash through ATMs remains a conundrum as the deployment of these machines is failing to match the requirement.

Banks and ATM operators worry that low intercharge fee and a cap on the number of free ATM transactions are making the scheme unviable.

A warning was sounded by the CATMi (Confederation of ATM Industry), an association of companies who deploy ATMs for banks, about the risk of high dormancy among accounts opened under PMJDY if enough ATMs were not made available to service the new account holders.

Under the PMJDY, banks have registered 8.83 crore new account holders, issuing 5.85 crore RuPay cards, said BusinessLine.

RuPay is a domestic card scheme facilitating a multilateral system of payments in India, as per RBI's directive.

The newly issued card requires an ecosystem that supports it. New machines see less than 100 transactions a day, against a minimum of 120 required for an ATM operator to break even.

ATM operators and banks point to operating costs involved in keeping a machine running and say that existing interchange fee is not enough to sustain the business model, affecting their ability to install more ATMs.
The April to June quarter for the year saw ATM deployment grow at a measly 1% to the corresponding quarter a year ago.
The total number of ATMs in India stand at 1,67,000 as of June 2014; Point of Sale (PoS) terminals account for 1.08 crore.

ATM unavailability limits Card adoption

Tata Communications Payment Solutions CEO Sanjeev Patel highlighted the tremendous work done in bringing the rural populace under the banking scheme, and added that "not much" had been done to make the card adoption easier.

According to Patel even when card issuance has seen an upswing, the ecosystem necessary to support it is dwindling, with many players choosing to slow down deployment.

A report by Deloitte and CII makes a case for 20,000 new ATMs to be available in the first phase of Narendra Modi government's financial inclusion plan; expected to run from August 15, 2014 to August 14, 2015.

Organized Banking Route at risk

Many Indian banks, state-owned and private, have capped the number of free transactions per month. However, a few banks insist that account holders who manage to maintain a good balance would be eligible for a charge waive-off.

Experts express fear that the added cost of transaction on the small value amount could drive people away from the organized banking route, defeating the very purpose of the scheme.

People with less or no balance, are the ones who need financial inclusion more than others; and it is this particular sub-set, inclusive of the urban poor, who will always need less money to withdraw, says Tata's Patel.

ICRA's co-head Financial Sector Ratings, Vibha Batra, pointed to the proliferation of ATMs in dense urban centres, where the number of transactions per ATM were lower and also per account deposits in rural areas average around Rs. 3,000 to 5,000,  and the number of transactions per ATMs was less and of low value.

The new banks to come up – IDFC and Bandhan Financial Services, could, however, change the financial landscape. The upcoming small banks will require adequate cash transfer and payment infrastructure mechanism to be in place in the next 2-3 years, creating an alternate channel of banking services.

Sunday, December 7, 2014

Banking on rural deposits

The Jan Dhan Scheme has by far been the quickest and most expansive financial inclusion drive launched in the country. It was launched with a set target for the existing banks. The results are quite amazing and actually provide some guidance to the new players entering the market as ‘payments’ or ‘small’ banks.

So far, 81.2 million accounts have been opened of which 60% are in rural areas. Banks, primarily public sector banks (PSBs), have issued 51.1 million RuPay cards for these accounts. Deposits in these accounts were R6,355 crore as of November 26. Interestingly, there were 60.7 million zero-balance accounts, which implies an average of R3,100 in the non-zero accounts. This scheme has been aggressively implemented and the focus was more on opening accounts with minimum KYC norms to expedite the process. The idea is laudable as it is a quick way of accomplishing a task. But the high zero-balance accounts, as well as low balances on an average, actually signal that these households typically do not have the money to keep as deposits or are sceptical of the same. Alternatively, they may not really be interested in such deposits, notwithstanding the add-ons of a debit card as well as possible future credit and insurance going forward.

Therefore, RBI’s decision to start issuing licences to payments banks that will take savings bank deposits and invest only in government securities for a 1-year duration or less and, to a certain extent, in other bank deposits, will pose a challenge to the licensees as they will have to create a superstructure to keep their business going. All options are open and telecom companies and other card-based companies can tie their businesses with bank accounts and probably be more successful than banks as there is already an existing business relationship with the customer. The question is will these households actually keep the deposits with these banks or not?

Post offices qualify for such a licence and are well poised to leverage this market. They would only have to scale up and not really have to start afresh like the supermarkets or telecom companies. Their deployment of funds too would change—passing it on to the Centre and states; they will have to deploy all in short-term paper. Their operations too have to be altered unless a new Post Office savings bank is opened in the same premises, as there are other products being offered which can no longer be done—postage, fixed and recurring deposits, and small savings (including the Kisan Vikas Patra). Regulation does not permit the same and, hence, a new bank may be created for this purpose. However, for an completely new entrant, the establishment costs would be considerable.

The model, for any entrepreneur, makes a lot of sense as the bank will get deposits at 4% or free (current accounts) and can earn a good 7-8% return. Operational costs will be low at 1-2%, and hence a return of 1-2% can be maintained without any encumbrance of NPAs or capital as these variables will become irrelevant given the business model. However, if fresh infrastructure is to be created then there would be high overheads.

The small bank concept is, of course, more challenging as 75% of the funds have to go to priority sector lending, to the farm sector and the SMEs, with a cap of R25 lakh for 50% of the loans. This will be on top of the CRR and SLR requirements. Intuitively, it can be seen that the cost of servicing these small-sized loans would be high for these banks which will also have to open up brick-and-mortar branches, unlike the payments banks.

Additionally, both these segments are vulnerable. When the monsoon fails, the farm loans go bad and the cycle of monsoon failures has been moving with shorter amplitudes. Further, the economic cycle too has become more unpredictable and, often, a sustained industrial slowdown results in higher NPAs being generated as they get affected almost immediately when the economy slows down. This being the case, the pressure on quality would be high. This will also pressurise their capital and hence will be onerous, unlike it is for commercial banks where the portfolio is well spread across all sectors, smoothening the risks .

MFIs and NBFCs can apply here and it will be interesting to see if they are attractive to these players. This will hold for MFIs who would get access to deposits in a formal manner and can lend to these segments where there is a modicum of familiarity. NBFCs, too, may be inclined to consider this option given that the regulatory structure has become a little more intense for them in their normal line of business.

The crux of these banks working well would depend on their ability to garner deposits in the rural areas in particular. The Jan Dhan Yojana warns that it may be difficult to get the deposits, though opening accounts would be easy. It will require a lot of awareness. Counter-intuitively, if the Jan Dhan programme that offers the promise of credit and insurance has not caught on, would a plain vanilla deposit be convincing to the household. This is where the payments bank should work and linking one’s own product to the deposit could be a good way of making a start.

Sunday, October 19, 2014

Guj State Co-op Bank launches RuPay card

amit shah
Gujarat State Co-Operative Bank (GSC) got a new feather in its cap on Tuesday. BJP President Amit Shah inaugurated RuPay ATM and debit card at its head office in Naranpura area in Ahmadabad.
On this occasion, Shah who himself is a cooperator and had been Chairman of co-op banks in the past dwelt on the issue of cooperative movement at length.

The GSC Bank is the apex bank of 18 co-operative banks in Gujarat having more than 1,200 branches across the state. While launching the first ‘RuPay’ ATM and debit card for the bank, Shah said one should not underestimate the capabilities of such banks.

Apart from Gujarat, Shah claimed that co-operative movement is still active in many other states, such as Maharashtra, Karnataka and Rajasthan.

“I know the strength of co-operative movement. This newly launched RuPay card and ATM is just a beginning. Looking at the sheer size and reach of this sector, I am sure that within next 5 years, debit cards issued by co-operative banks will be highest in India,” he said.

Jan Dhan scheme goes against KYC norms, is time bomb for banks

Do not get me wrong. I believe financial inclusion is a wonderful initiative and everybody should have access to a bank account. The concern I have is how this should be done.

Shortly after the budget, on August 28, the Jan Dhan scheme was announced. Its purpose was to make opening a bank account attractive and thereby to coax individuals who do not have a bank account to open an account. As sops there were several inducements – the account could be opened with no deposit; accident insurance of Rs 1 lakh; life insurance cover of Rs 30,000; an overdraft facility of Rs 5,000 and a RuPay debit card to withdraw money.

Banks were asked to promote Jan Dhan, and in the first ten days a mind boggling 3 crore accounts were opened. By October 7, 5.52 crore accounts had been opened.

My concern stems from various factors.

The first is that the account can be opened with just two signed photographs. An individual does not have to submit PAN card or Aadhar card or any other documentation. My concern here is two-fold. This submits that no real verification of an individual is required and that goes against the purpose of the Know Your Customer (KYC) rules that were brought in to check money laundering and terrorist activities.

Earlier before these rules were enforced individuals opened accounts in fictitious names to "bank" their black money. The other worry is that individuals will have multiple accounts in different banks which they may then misuse for the benefits under the scheme. The one-page account opening form has a column seeking self-declaration that a person does not have any account in any bank. This self-declaration is meaningless as there is no mechanism to stop multiple accounts. Furthermore there is no inter-bank arrangement to stop duplication.

Bankers agree that accounts opened without a valid address proof are high risk. They are unable to do anything though in this regard as the scheme permits accounts to be opened with two signed photographs.

The Prime Minister after announcing the scheme wrote to the chairmen of all public sector banks to aggressively open accounts – the target given was 7 crore accounts. The large number of accounts opened is testimony to the enthusiasm displayed by these worthies. State Bank alone opened 11,300 camps solely to open Jan Dhan accounts. Others were not far behind. There have been 12-hour Saturday camps and account opening Sundays. The issue that needs to be addressed is whether banks can service these accounts. Service in some of the large public sector banks are often found wanting. The infrastructure does not exist to handle this volume. No one seems to have addressed the issue on banks expect to manage this.

In the initial years of bank nationalisation, public sector banks were given targets that had to be met. There were loan melas held and large amounts were disbursed. These ended up as bad loans as the recipients viewed these loans as a right. I remember a public sector banker who told me that he was told that he should disburse amounts to farmers for digging wells. In this endeavour he would meet villagers who had land and force them to take money to dig wells they did not ask for.

The aim was to meet the target. More often than not the money was spent for another purpose as no follow-up was done and in time they became bad debts. I foresee a situation that is similar. Many will run up an overdraft of Rs 5,000 and then disappear off the grid or open another Jan Dhan account at another bank and in time run up another overdraft. Public sector banks labouring with huge non-performing loans cannot afford to be saddled with another potential time bomb. I foresee too that even though bankers may say that all will not be permitted to run up an overdraft, there would be political pressure that will be brought to bear and bank managers may have no alternative.
I honestly hope these concerns do not become a reality but I am frightened. We, as a race, have a tendency to subvert even the best of intentions and financial inclusion is a good thing.

Monday, September 22, 2014

Cutting Down Interest Rates - State Bank of India

Banking major State Bank of India cut interest rates on fixed deposits of some timelines. Deposits between one and three years will now earn a rate of 8.75 per cent as against the earlier 9 per cent. But for short-term deposits, the bank has gone the opposite way. For deposits between 180 and 210 days, interest rates are up to 7.25 per cent from the earlier 7 per cent. 

IndusInd Bank has also cut rates, but this cut is on its savings bank accounts. The bank, which was among those which offered higher interest rates on the savings account, brought down interest rate to 4.5 per cent from 5.5 per cent for daily balances of less than ₹1 lakh. The reduction in rate is effective from September 1. The rate remains the same at 6 per cent for daily balances exceeding ₹1 lakh. 

Universally applicable
The benefits under the Pradhan Mantri Jan Dhan Yojna are not restricted to new bank accounts. Now, the Government has clarified that existing account holders can get these benefits as well, if they so desire. 

The benefits that can be got are the RuPay debit card with an accident insurance cover of ₹1 lakh and the issue of an overdraft of ₹5,000 after satisfactory operations for a period of time. To get these benefits, all that needs to be done is to apply to the concerned bank branch. 

Fund change
Investors in PineBridge mutual funds, take note. Kotak Mahindra Asset Management will acquire the domestic schemes of PineBridge Mutual Funds, subject to regulatory approvals. 

Of the seven schemes from the PineBridge stable, among the larger ones is PineBridge India Equity Standard fund, a multi-cap equity fund. But across the one-, three-, and five-year periods, its returns are below the category’s average. The fund, however, did edge past its benchmark BSE 100 in all periods. 

PineBridge India Short Term fund, its biggest debt fund, has similarly paled in performance compared to category peers across time frames. 

Absorbing these funds into the Kotak Mahindra stable may inject some improvement in performance. Though not top-quartile performers, quite a few funds from the Kotak house are at least mid-quartile performers. Funds such as Kotak Select Focus have recently picked up in performance as well.
In total, PineBridge has an asset size of about ₹635 crore. The Kotak AMC is bigger with assets under management of about ₹35,885 crore.

Tuesday, September 2, 2014

Banks open 2.14 crore accounts under Jan Dhan Yojana

The Finance Minister said that the target of opening up of 7.5 crore would be achieved before January 26, 2015. (Reuters)

Finance Minister Arun Jaitley today said banks have opened about 2.14 crore saving accounts since the launch of Jan Dhan Yojana on August 28.

"As of yesterday afternoon 1.84 crore accounts were added. Enrollment have of today afternoon about 2,14,34,000 accounts have been opened," he said.

The Finance Minister said that the target of opening up of 7.5 crore would be achieved before January 26, 2015.

The beneficiaries, who already have a bank account, are also eligible to take benefits of accident insurance of Rs 1 lakh and life insurance of Rs 30,000 under this scheme by getting a RuPay card issued from their bank branches before January 26, 2015.

Prime Minister Narendra Modi on August 28 launched the Pradhan Mantri Jan Dhan Yojna, a mega financial inclusion scheme, to cover about 7.5 crore unbanked households.

Under the scheme, a person from an unbanked household, opening an account will get a RuPay debit card with a Rs 1 lakh accident insurance cover. An additional Rs 30,000 life insurance cover will also be given if the accounts are opened till January 26, 2015.

Speaking about the scheme, Financial Services Secretary G S Sandhu said Rs 1 lakh accident insurance with the RuPay debit card is free to customer.

However, he said the premium on Rs 30,000 life insurance cover would be part paid by beneficiaries for which department is working out modalities.

The new scheme is an improvement over the UPA's financial inclusion programme.

The earlier scheme had no focus on households and no emphasis was given on urban financial inclusion, some experts said. Besides, they maintained that there was a cumbersome Know Your Customer formality, restricting account opening.

Other deficiencies cited included lack of credit disbursement and 47 per cent of business correspondents being untraceable, resulting in inactive accounts.

The new scheme has tried to address all the possible deficiencies and its monitoring would be done at state and district levels.

The 'mission mode' approach has been envisaged with the Finance Minister as head of the mission.
The mission will have five different levels for overseeing the implementation of the programme, three with the Centre and two with state governments.

The programme assumes importance as 42 per cent of the population is still out of the formal banking system, and has to depend on money lenders for meeting their credit needs.
The present banking network of the country comprises

Wednesday, May 21, 2014

Tap-to-pay Eftpos transactions on the way

Tap-to-pay Eftpos transactions on the way

Shoppers will soon be able to swipe their debit cards for small payments, continuing the enthusiastic adoption of contactless cards in Australia that has accelerated the demise of cash.
Eftpos launches its defence against Visa and MasterCard’s contactless payments in September when banks begin to roll out its contactless cards.

The 30-year-old domestic electronic payments company has raced to replace its aging bilateral network with a hub system in just seven months. This will allow it to upgrade its network twice a year and aid its rollout of contactless payments on chip cards from September.
Transactions on Eftpos’s network declined from 51 per cent of all card transactions in 2011 to 45 per cent in April due to the rapid local take-up of contactless chip cards offered by international card companies.

The acceptance of contactless cards by Woolworths and Coles is a big ­contributor to Australians becoming among the most enthusiastic adopters of contactless cards in the world.

Usage rose from just 12 per cent of card holders in September 2011 to 47 per cent in March 2014, a recent study by RFi and Hewlett Packard found.

The take-up of contactless cards and online shopping led cash usage to fall by 20 per cent between September 2012 and September 2013. Reserve Bank of Australia figures show cash withdrawals declined by about $1 billion to about $15.3 billion per month in December 2013, compared to December 2009.

In the 2013 financial year, the RBA found the amount of cash withdrawn had declined only marginally to $243 billion. But the relative use of cash has fallen because household spending increased by 5 per cent in that time.

Eftpos ‘cheapest payment to take’

Eftpos managing director Bruce Mansfield says the company has made millions of test transactions over its new network, and two of its members – which include all major banks as well as Woolworths and Coles – will begin using it from September.

“Centralised payments hubs are being built around the world, including Faster Payments in the United Kingdom and RuPay in India, just to a name a couple,” Mansfield told the Cards and Payments annual conference in Melbourne last week.

With 14.6 million eftpos-only cards in the market, he said it should be expected that contactless Eftpos would lead to a “percentage of cash transactions replaced by Eftpos contactless”.

Russell Zimmerman, the head of the Australian Retailers Association, says many smaller businesses preferred to receive cash because they incorrectly thought it cost them nothing to accept whereas they had to pay fees to the card companies. But he said any business accepting payments above $20 would prefer to accept payments made via Eftpos, so the availability of contactless payments via that network should ease resistance to accepting non-cash payments. “There should, by rights, be less resistance to Eftpos because it is the cheapest payment to take,” he says.

Eftpos charges merchants a flat fee of about 14¢ per transaction. Visa and MasterCard charge about 0.86 per cent of the transaction total. “If you are going to be selling something at $20 to $30 and above – if you’re a shoe shop or a dress shop – it has to be cheaper to take eftpos,” Zimmerman says.
However, Alex Ballman, head of research at RFi, says Eftpos is not offering anything new to what is already available so its move into contactless and online would be unlikely to make much difference to cash usage. “I am not convinced it is going to have a significant impact,” he says.

Thursday, April 24, 2014

NPCI Launches RuPay PaySecure, an e-commerce Solution

National Payments Corporation of India (NPCI), the umbrella organization of all retail payment systems in India, today announced the much-anticipated RuPay PaySecure e-commerce solution at an inaugural event in Mumbai.
“The launch of PaySecure with RuPay in India, Acculynk is well on its way to becoming the first global debit authentication network, bringing together debit cardholding consumers from across the globe to merchants”
RuPay PaySecure solution, which is devoted to serve the citizens of India with exceptional and user-friendly features, was launched by Shri H. R. Khan, Deputy Governor of Reserve Bank of India (RBI), in the presence of Indian banking stalwarts.

With the RuPay PaySecure solution, anyone having RuPay cards can make online payments to fulfill various need-based services such as reservations, booking, ticketing, shopping, utility bill payments in a secured manner.

Bank of Baroda, Union bank of India and Kotak Mahindra Bank are first to join as acquirers whereas Bank of Baroda, Union Bank of India and Bank of India have become issuers. State Bank of India and HDFC Bank will soon join the bandwagon.

Speaking at the launch, Shri A. P. Hota, Managing Director & CEO, NPCI, said, “Enabling the RuPay card for online transaction through the PaySecure solution will positively impact e-commerce growth in India and be positive for issuers, merchants and consumers. With this launch, NPCI is one step closer to fulfilling the vision of bringing millions of RuPay cardholders to e-commerce.”

“The launch of PaySecure with RuPay in India, Acculynk is well on its way to becoming the first global debit authentication network, bringing together debit cardholding consumers from across the globe to merchants,” said Ashish Bahl, CEO, Acculynk. “Our ability to bring millions and frankly billions of new consumers from debit centric markets to U.S. merchants with a single PaySecure implementation is a game changer for e-commerce.”

NPCI’s RuPay PaySecure solution has integrated with 100-plus merchant websites across multiple categories that would accept RuPay card for online payment services. NPCI is aiming to cover 100% of e-commerce market by this year-end, for which, significant efforts are being made consistently.

RuPay PaySecure conforms to the RBI mandate of two factor authentication- firstly, it uses two security parameters to authenticate a customer and authorize transaction through the participating banks, and secondly, the solution uses ‘image selection’ for ensuring additional security of every single transaction. This innovative authentication methodology simplifies and improves the existing e-commerce experience of the cardholder as they don’t need to remember complicated passwords or suffer through transaction drops or time-outs, thus making the service more user-friendly and quicker.

NPCI has partnered with US-based online security specialized firm Acculynk to integrate to Acculynk’s patented technology that will address the critical internet based frauds targeted at banks and their customers such as – cyber-attack mechanisms like phishing, key-logging, and spyware/malware. NPCI will address these issues with effective visual security checks such as bank card themed PIN pad, mouse click data entry, customer’s personalized parameters and more.
Enablement of RuPay debit card, India’s domestic card, for e-commerce is a big step towards online payment revolution. RuPay cards issuance has grown to over 3 million in just one year ever since it has been launched in March 2012, and the numbers are adding up. RuPay debit cards are being issued by 20 commercial banks, 32 Regional Rural Banks and over 75 co-operative banks.

At the end of April 2013, more than 336 million bank customers were issued debit cards growing at compound annual rate of 18 percent with the number of credit cards in the market under 20 million, growing at between six and seven percent. The Internet and Mobile Association of India estimates India has 52 million active Internet users and 40 percent of them have shopped online. The introduction of RuPay as an online payment method is expected to contribute to a substantial increase in the number of active online shoppers.

About NPCI
National Payments Corporation of India (NPCI) is the umbrella organization of all retail payment systems in India and is set up by the banks in India with the support and guidance from Indian Banks’ Association. The organization has been mandated to build and operate central infrastructure for payment systems like ATM Switching, Mobile Payments, Cheque Truncation System, POS Switching, 24 * 7 remittance system and Financial Inclusion transactions. The organization has also a mandate to build a domestic card payment scheme.

Thursday, February 27, 2014

Primary agri co-op societies to operate RuPay card in Dakshina Kannada

 Primary agricultural cooperative societies (PACS) that form the base of the cooperative credit structure are now set to play a major role in financial inclusion, as the South Canara District Central Cooperative (SCDCC) Bank has introduced the facility of RuPay Kisan Credit Card and RuPay Debit Card for them. 

While SCDCC Bank offers the RuPay card facility, around 600 point-of-sale (POS) instruments in PACS and their branches help transact the RuPay card. 

RuPay is a domestic card scheme launched by National Payments Corporation of India. It enables electronic payments at banks and financial institutions in the country. VISA and MasterCard are the foreign payment gateways 

Launching RuPay card facility here, MN Rajendra Kumar, President of SCDCC Bank, claimed that his bank is the first district central cooperative bank to introduce the facility of RuPay cards to PACS. (PACS, numbering 166, are affiliated to SCDCC Bank) 

GR Chintala, Chief General Manager of Nabard, Bangalore, told Business Line that Raigad Central Cooperative Bank in Maharashtra has already issued RuPay kisan credit card. 

He said, probably, SCDCC Bank is the first one where even PACS were taken on board. In Raigad, the accounts of PACS were shifted to the district central cooperative bank. 

In the case of SCDCC Bank, the identity of PACS was retained. The transactions done by PACS are reflected in the books of central cooperative bank. 

Nabard has extended ₹1.46 crore for infrastructure such as RuPay cards, point-of-sales terminals (which are used for swiping cards to do transactions), etc. 

Rajendra Kumar said that all the 166 PACS and their branches will be brought under CBS (core-banking solution) network by the end of December. SCDCC Bank, which has 63 branches, implemented the CBS in 2012. 

Explaining the benefits of RuPay cards to customers, Chintala said apart from RuPay there are two other foreign payment gateways. Now whatever transactions the customers do, the foreign payment gateways debit around Rs 6 per transaction. A lot of money is going out of the country through this.
In the case of RuPay, around 40 paisa is charged per transaction, and the money is retained in India, he said. 

Rajendra Kumar said that the customers of SCDCC Bank and PACS, who have RuPay card, can use it for transactions in any part of the country.

Sunday, February 9, 2014

RuPay Cards to reach 25 m

The National Payment Corporation (NPCI) plans to almost double the number of RuPay Cards, the homegrown rival to Visa and MasterCard, to 25 million over the next two months.

“We have so far issued 14 million RuPay cards, and this will touch 25 million by the end of March,” NPCI Managing Director and Chief Executive Abhay P Hota said.  NPCI is the nodal agency under the Reserve Bank that manages the national payment switch and has developed the RuPay Cards.

RuPay Card, Reserve Bank and domestic lenders-promoted NPCI’s answer to Visa and the MasterCards which control the domestic plastic money market, was launched in April 2012.

It has seen as many as 210 banks, including all public sector banks and some of the leading private sector ones, issuing these domestic debit cards, Hota said. He agreed, however, that most RuPay customers are urban cooperative banks and regional rural banks.

He also said Citi and HSBC will join RuPay system by July. “Today our cards are accepted on all ATMs (1.45 lakh), 8.4 lakh merchant terminals and 70 per cent of the e-commerce merchants,” he said.

About the quick acceptance, he said, for all the stakeholders it makes immense business sense as NPCI charges just 90 paise as the fee per transaction — 60 paise from the merchant and 30 paise from the issuing bank — with the same kind of security; the same on a Visa or MasterCard is as high as Rs 4.

“Our switching fee is only 60 paise for acquiring banks and 30 paise for issuing banks per transaction,” Hota said. On profitability, Hota said, “We will break even by the end of the seventh year (2018-19).”

Hota ruled out entering credit cards business as of now but was confident of traction in the international debit cards. Till now, Bank of Baroda, Central Bank of India and Saraswat Bank have issued RuPay international debit cards, being offered with the California-based Discover Financial Services. 

Monday, November 11, 2013

Kangra Bank, Delhi on growth path with Rupay Card

The Kangra Co-operative Bank Limited, the largest Co-operative Bank of the NCTD , Delhi, held its 45th Annual General Body Meeting at FICCI Auditorium, New Delhi recently. Addressing the meeting the Chairman of the Bank Shri Laxmi Dass , who is also chairman of the Delhi Urban Co-operative Banks Federation , elucidated the growth of bank over the previous year.

Addressing the members at this occasion, Mr Dass said that the bank has shown remarkable progress compared to the average growth of banking industry. The bank continues to maintain the distinction of paying 18% dividend , the highest rate permitted as per DCS Rules -2007 , for the past 5 years and less than 1 % net NPA level for the past so many years.

Laxmi Dass said that the RBI has acceded to the request of the bank to open 2 more branches – With the opening of proposed branches, the bank’s branch network is expected to increase to 9 from the present 7 branches. The Kangra Bank would perhaps soon become the first coop urban bank in Delhi to launch ‘RuPay” ATM cards which would enable the customers to do their transactions from more than 1,00,000 ATMs of all the banks across the country.

The bank has already offering funds remittance facility through its own RTGS and NEFT system by which customers are able to transfer funds to any account/bank across country . The Bank has been awarded four times the ‘Best Cooperative Bank ‘ award by the office of RCS and Delhi State Cooperative Union. National Cooperative Union of India (NCUI) has also awarded the Bank for its outstanding performance at its 16th Indian Cooperative Congress held on June 25 & 26 , 2013.

Mr. A C Parmar , Managing Director & CEO of the Bank informed that in addition to this, RBI has granted permission for appointment of BCs/ BFs of the bank . Tender Notice for inviting best competitive offers from OEMs/ Authorised Agents / Eligible Bidders for installation of ATM Machines , appointment of BCs/BFs and providing of EFT Switch Services on shared basis has already been floated and process of selecting the right Vendors/ Parties would be completed by the Technology Development Committee of the bank very soon. He further said that ECS and SMS alert services have also been made available to the customers.
Parmar clarified that the RuPay ATM cards to be issued by the Bank to its customers can also be used as Debit Cards by which customers would be able to make payment for purchases made by them at merchant establishments anywhere in the country.

The Kangra Bank has also been discharging its Corporate Social Responsibility in a befitting manner . Shri B R Sharma , Ex-MD and present Chief Advisor & Professional Director of the Bank informed that the bank has been giving death grant to the family members of the deceased member of the Bank for the last 15 years which has now been increased to Rs.25,000/- w.e.f. 01.01.2014 .

Apart from this the bank has been giving one time cash scholarships and meritorious awards with certificate to the children of members and staff if he/she obtains 90% and above marks in the Board Examinations of 10th and 12th classes. The amount of meritorious award is Rs.3100/-for 10th class and Rs.5100/- for 12th class.
Shri Sharma further informed that the bank has also been paying monthly scholarship amount ranging from Rs.150/- p.m to Rs.250/-p.m. to the child of member / staff who have obtained 71% and above marks in 8th ,9th,10th and 11th classes . He said that the Bank has strong belief that recognition of brilliant students would definitely encourage them to play significant role in shaping the future of our country.

Mr Dass informed that the Bank has registered significant increase in the following segments.

20.26% in deposits
9.85% in loans and advances
13.41% in Income
8.24% in share money and general reserves
1.84% in membership strength
6.70% in Customers strength
7.68% in net worth of the Bank which is 47.58 crore as on 31.03.13

Friday, October 4, 2013

Vijaya Bank - Rupay KC FI Guidelines

Rupay KC FI Guidelines  

Guidelines for ATM enabled Kisan Debit Card
  1. The ATM enabled Kisan Debit card is issued to the customers having Vijaya Kisan Card account at your branch (CBS) and is linked to VKC account of the customer.
  2. The ATM enabled Kisan Debit Card  is specially designed non photo card launched in association with Rupay a Domestic payment branch promoted by NPCI
  3. The card is issued free of charge and is valid for 10 years
  4. The cardholder can withdraw cash from all the ATMs of our bank and other bank’s Rupay Branded ATMs.
  5. The Kisan Debit card also can be used at merchants for the purchase of items required for agriculture activity only*.   To restrict the use of Kisan Debit card for agriculture purpose, an undertaking letter is to be obtained from the VKC customer applying for Kisan Card. A Performa of the undertaking letter is enclosed herewith.
  6. The existing limits of Debit Card for cash withdrawal at ATMs ,Merchant transactions and number of financial transactions are applicable in case of Kisan Debit card also subject to not exceeding the drawing power/seasonal sub limits fixed for VKC a/c of the cardholder. 
ATM cash withdrawal limit per day
Rs 30,000/-
Merchant transaction limit per day
Rs 25,000/-
No of transactions per day (financial)
  • The drawing power for the Kisan card account will have to be fixed by the branch depending upon the crops cultivated, area under cultivation and scale of finance. The guidelines for opening and maintaining drawing power on Kisan Card account has been framed by the HO – credit priority by way of circulars has to be complied with.
Card Fee
Fresh card issuance
Hotlisting of the card
Rs 50/-
Card replacement
Rs 100/-
PIN regeneration
Rs 25/- per request
Cancellation charges (Applicable if cancelled in the   first card year)
Rs 100/-  
 *Applicable S. T Extra

Transaction charges
Vijaya Bank’s ATM cash withdrawal & balance Enquiry/mini statement/ PIN change
Other bank’s Rupay  ATMs*   
Balance Enquiry

Rs  20/- per transaction
Rs    8/- per enquiry

  • Applicable S. T Extra. (Since the Accounts are treated as Current Accounts in
Nature, no exemption from charges is eligible for kisan debit cards for using other bank ATMs.)
Other Charges
Charges for request for copy of chargeslip  *
  • for transactions at our merchants
  • for transactions at other banks merchants

Rs 100/-
Actuals with a minimum of Rs 100/-

    *Initially Rupay cards are enabled for ATM Usage only till a separate communication on enabling the card for POS transactions is issued.
  • For the issue of ATM enabled Kisan Debit card, an application is to be obtained from the VKC customer. The existing Debit card application.  may be used for this purpose. In the Debit Card application ‘Application for Vijaya Global Debit cum ATM card’ may be modified as ‘Application for Kisan Debit Card’, with due authentication from the customer. The original application obtained should be retained with the branch only.
  • For sending the data to Debit Card Cell, the same procedure as applicable in case of Debit Card is to be followed. Since Rupay Kisan Debit card is a non -photo card, branches has  to mark Y in freetext6 field of the VKC A/c of the applicant.
  •  As in the case of Debit Cards, the Kisan cards will be sent to the branch & & PIN mailers to customer address through separate couriers.
  • As soon as the Kisan Card & PIN mailers are received at the branch, the same have to be entered in the Debit Card & PIN Mailer Issued Register. Some pages of the existing Register may be used for Kisan Cards. 
  • Before delivery of Kisan Card to the customer, the card is to be activated by marking E (replacing Y) in the VKC a/c of the customer and authorizing the same.
  • Since the ATM enabled Kisan Debit Cards are issued with Debit Card PIN, the rules and regulations on Debit Card are applicable to Rupay Kisan Card also. The guidelines on issuance of debit cards as per HOC 29/2008 dated September 2, 2005 and 35/2006 dated February 20, 2006 as applicable to Kisan card should be strictly complied with. 
Dispute Resolution
As the transactions are debited ONLINE, any dispute relating to a transaction should be reported by the cardholder in writing to the branch/Credit Card Division, HO, and Bangalore within 30 days from the date of transaction. Terms of HOC 263/2011 will be prevailing on handling the disputes received at the branches in this regard.

Bank of Baroda - Rupay Card Details

RuPay Debit Card
We are pleased to inform the launch of India’s First Domestic Card -RuPay Debit Card in co-ordination with NPCI. Presently RuPay Card can be used at ATMs and selected POS in India only.

Key features of RuPay Debit Card:
  • It can be used only with PIN hence a more secured debit card.
  • No threat of card misuse when lost/stolen.
  • Card would be accepted only at secured PIN based POS terminals.
  • Cash withdrawal limit at ATMs is Rs 25,000/- per day.
  • Spend limit at merchant outlets (POS) is Rs 50,000/- per day.
  • Available to all customers eligible for debit card issuance.
Target customers:
  • All Saving Bank Account holders (existing and new).
  • Baroda Advantage Current Account holders (existing and new)
  • OD against Bank’s Own Deposit and OD against NSC, KVP, LIC etc (existing and new).
  • No frill Accounts.
RuPay Debit Card can be accessed/used as under:
  • More than 2,000 Bank of Baroda Interconnected ATMs spread across major centers in the country.
  • Member banks (100 plus) of National Financial Switch having more than 1,00,000 ATMs in the country.
  • NPCI member bank ATMs all over the country bearing RuPay logo.
  • For convenient shopping, dining out at selected outlets accepting RuPay Cards in India.
  • RuPay Debit Cards have the additional security of PIN based authorization even for transactions made at Merchant outlets.

Wednesday, September 18, 2013

Morpho becomes first RuPay-certified vendor for chip card manufacturing in India

Morpho (Safran) today announced that its Indian subsidiary Syscom has been certified as the first and to date only payment card manufacturer in India for the manufacturing and personalization of chip cards for RuPay, the Indian payment card network by National Payments Corporation of India (NPCI).
The RuPay chip card is based on the D-Payment Application Specification (D-PAS) platform, which is the EMV* technology of Discover Financial Services (DFS). The RuPay chip cards will thus be accepted at all Discover Point of Sale terminals and ATMs globally in addition to the vast network of RuPay-enabled ATMs and Point of Sale terminals in India.

"This certification recognizes Syscom's commitment to maintain technology and quality leadership over all other card manufacturers in the country to meet banks' requirement for payment cards," said Sanjeev Shriya, SVP Sales India at Morpho, e-Documents Division and Managing Director, Syscom. "The chip cards are based on international specifications that provide protection to banks and customers against card skimming and counterfeiting frauds. We are now fully equipped to meet the stringent security and certification requirement of the banks."

* EMV (Europay, MasterCard and VISA) is becoming the global standard in the migration from magnetic stripe cards to chip-based cards. EMV is an interoperability standard developed by the three financial institutions to ensure that all Europay, MasterCard, and VISA-branded smart cards and all smart card-reading POS terminals and ATMs work together to deliver the highest level of security.

Tuesday, September 3, 2013

Reaching out to farmers, the electronic way

India’s first card payment network, RuPay, similar to Visa and MasterCard, is changing the way farmers are banking 

RuPay, India’s first card payment network similar to Visa and MasterCard, is changing how farmers are banking and handling their money. 

Take the case of Mahesh Kumar, 38, a farmer on the outskirts of Mumbai. He used to withdraw the entire Rs.1.5 lakh of annual farm credit he was entitled to under the Kisan credit card scheme in a single instance, and end up paying huge sums in interest.

Last year, he began using a RuPay Kisan card instead to withdraw smaller sums of his entitlement from automated teller machines as well as to make payments at retail stores. “It has made life very easy. Now, I can withdraw small amounts of money any time and save on interest costs,” he said.

Crop loans of up to Rs.3 lakh are disbursed at an annual interest rate of 7%, according to the ministry of agriculture’s website. The government provides interest subvention of 3% per annum on prompt repayment, effectively making the crop loans available at 4%.

The Kisan credit card was launched in 1998-99 by then finance minister Yashwant Sinha to help farmers make smarter decisions on how to use cash for cultivation rather than depend on suppliers who were funded by banks.

RuPay was conceived to offer a domestic system that will allow all Indian banks and financial institutions to participate in electronic payments. Through RuPay Kisan cards, farmers are now able to make electronic payments. For a bank, the RuPay cards mean lower transaction costs than MasterCard- or Visa-branded cards.

RuPay was launched in March 2012 by the National Payment Corp. of India (NPCI), and currently cards affiliated to it are issued by 20 state-run banks, six private banks and 84 cooperative and gramin banks that cater to people in small towns and villages.

“We now have 6 million cards in circulation, out of which 2.7 million are Kisan cards, 2.5 million are with cooperative banks and the remaining are with mainstream banks,” said A.P. Hota, chief executive and managing director of NPCI. He hopes to issue 150 million cards in two-three years.

On 6 August, Dombivali Nagari Sahakari Bank Ltd became the first scheduled urban cooperative bank to introduce RuPay debit cards. Milind Varerkar, general manager, said it was “the first time we issued debit cards and it is through the RuPay network, as the Visa and MasterCard software loading proves to be very expensive”.

“From a bank’s perspective, RuPay network is cheaper,” said C. Sumoth, chief manager (priority sector advances department), Federal Bank Ltd. “It will help a bank save at least 25-30% on switching and cardholding cost compared with using a Visa or a MasterCard platform.” Federal Bank has issued 10,000 RuPay-branded debit cards since it launched these in April.

“Competition is always welcome,” said Visa Inc.’s group country manager for India and South Asia Uttam Nayak. “We undeniably accept that they (RuPay) have support of the government,nationalized banks and shareholder banks, but the market opportunity is huge.”

Calls to Ari Sarker, division president, South Asia, MasterCard Worldwide, went unanswered.
In June, NPCI also launched PaySecure for RuPay cards, an e-commerce system similar to PayPal that allows secure online payments. Until now, these cards worked only at ATMs and point-of-sale terminals at retail outlets.

Shekhar Ganapathy, general manager for South Asia at ACI Worldwide Inc., which provides software for banks to help recognize transactions made through RuPay cards, believes the network has a good chance of success if its reach improves.

According to the Reserve Bank of India, there are around 120,000 ATMs and about 1 million point-of-sale (PoS) terminals in the country. While customers can use RuPay cards at all ATMs, most PoS terminals are yet to be configured to accept it. “As of now, only 25-30% of the PoS machines in the country accept RuPay card. Hence, there are issues when it comes to swiping the cards at other terminals,” said Sumoth of Federal Bank.

The penetration of RuPay cards is slow, admitted Hota. “Out of the nine lakh (900,000) PoS terminals, RuPay works on 2.7 lakh terminals,” he said, attributing the delay in acceptance to software upgradation that is being done manually. “To get private sector banks and mainstream banks to convert to RuPay cards full-time will be our biggest challenge,” he said.

RuPay will soon be available as an international card in collaboration with DFS Services Llc, a US payment network. “RuPay, by default, is a domestic card, but an international variant will be available soon,” Hota said.

RuPay is a step in the right direction and a starting point that can be applicable to the rest of the market,” said Bharat Poddar, partner and director, Boston Consulting Group. “And with RuPay set to launch international cards, it can help solve the problem that inhibits its acceptability in high-end markets.”

Thursday, August 22, 2013

Global Domestic Payment Card Market Networks 2020 Foresight Report

International payment card networks such as Visa and MasterCard enjoy the majority of the global market share, enabling them to control pricing in their favor, leading to high transaction and settlement costs for the overall card payment channel. Owing to this, the idea of government backed domestic networks has started to gain momentum in a number of markets. The emergence of government-backed networks is expected to play a crucial role in the redistribution of market share; they are predicted to lower the cost of transactions and help in the growth of card services to a larger market through increased competition. The success of China’s UnionPay and India’s RuPay are expected to fuel the trend further. The ability to provide transaction facilities for up to 40% cheaper than international networks is expected to be the key growth driver for domestic networks, especially in emerging markets. Moreover, International networks have lagged behind in exploiting business opportunities in certain market segments such as micropayments, social benefit programs, and the reliance of the rural population on small financial institutions.

Scope for report “2020 Foresight Report: The Role of the Domestic Payment Card Network ( ”
  • This report provides comprehensive analysis of domestic payment card networks on a global scale with the current competitive landscape of different payment card networks and their market share in selected developed and emerging economies
  • Includes insights on both established and dominant domestic networks as well as new emerging schemes
  • Analyzes key market potentials including target markets, growth drivers and challenges
  • Examines key strategies adopted by domestic payment card networks to expand their business and increase revenues in both developed and emerging markets
  • Futuristic outlook about expected strategic response from international payment card networks to counter competition from local and national competitors
Competition among payment card networks is expected to accelerate over the next five years. This can be attributed to the rise of domestic networks in emerging economies and the opening of economies to international networks, such as in China. The rising competition is expected to have an impact on fees charged by card networks, which are expected to decline from the current levels and will also lead to a redistribution of market share. Although international card networks will continue to dominate the overall market over the next five years, domestic networks are expected to gain significant market share, driven by cost advantages and preference by government-aided financial institutions. The key target markets of domestic payment card networks include micropayments, small financial institutions and social benefit programs as well as traditional markets. Additionally, domestic networks are expected to increase their focus on smaller, independent stores with rising penetration of innovative technologies such as MPOS devices that support acceptance of card payments with minimal investment.

Monday, July 15, 2013

Co-operative banks may get a breather in Rupay Card launch

Cooperative banks are likely to get more time to comply with the new regulations of Reserve Bank of India (RBI) on banking operations as neither the Central government nor the regulatory bank has completed the preparations to switch over to the new payment regime.

The RBI had set June 30 as the deadline for cooperative banks to abide by a four per cent capital adequacy norms and insisted that cooperative banks should make agriculture lending through RuPay cards. The RuPay-enabled credit card is the Indian domestic card payment network set up by the National Payment Corporation of India. The RBI had said that core banking solutions should be introduced in the primary cooperative banks through the District Cooperative Banks and agriculture lending should be routed through RuPay cards. On insisting to ensure four per cent capital adequacy, the banks will have to maintain a capital of Rs.4 for every Rs.100 lent. This was proposed to be progressively increased to seven per cent by 2014 and nine per cent by 2015. Non-compliance would have lead a total freeze on the banking operations and agriculture lending would have been the first casualty.

Banking sector sources told The Hindu here that neither the Centre nor the RBI had issued any instruction so far on the action to be initiated against the banks which had not moved over to the proposed payment system. This was mainly on account of the delay in distributing the RuPay cards and also completing the work on core banking solutions. It may take at least a year to complete such procedures and the cooperative sector would get a breather till then.

The distribution of Kisan Credit Cards (KCCs) had also not made much headway in the State since September last. As per the statistics available on September 30 last, 6,94,406 cards were distributed through cooperative banks and 1,49,279 cards through Regional Rural Banks. 

When compared to other States, Kerala has a unique cooperative movement with a strong network of 1,603 primary banks and 14 district banks that come under the apex State Cooperative Bank with deposits to the tune of Rs.82,000 crore. A lion’s share of the deposits, roughly about Rs.60,000 crore, have been mobilised by the primary banks which cater to the primary financial needs of small, medium, and marginal farmers as well as traders and others at the grass-roots level.

Kerala will thus perhaps be the only State to be hit hard by the guidelines. But it may not be able to garner the support of other States to mount pressure on the Centre for an exemption from the regulator bank, sources said.

Vijaya Bank promotes RuPay-branded debit cards in Gujarat

Vijaya Bank has enabled its merchant terminals for usage of RuPay-branded debit cards in Gujarat, urging customers to make use of the new indigenous payment facility.

A function was held at its Regional Head Office here to enable merchant terminals in the use of RuPay-branded debit cards. 

Ajay Kumar Khurana, Regional Manager, said with the enabling of the bank’s ATMs and POS terminals for the RuPay brand, Vijaya Bank has joined the league of banks whose payment and settlement systems for domestic card transactions are settled within the country. 

RuPay is an indigenous payment and settlement system that was developed by the National Payments Corporation of India (NPCI) in October. 

So far, Vijaya Bank has issued two variants of the card, i.e. RuPay debit card for financial inclusion projects and general customers and Kisan debit cards for the farming community. 

Till now, the usage of RuPay cards was restricted to ATMs. With the activation of the bank’s POS terminals with the RuPay brand, RuPay card usage has been extended to ME terminals. Apart from payment services on the card, NPCI is supporting banks in India for other alternate delivery channels such as mobile banking, IMPS, cheque truncation and NEFT/RTGS services. 

Vijaya Bank Chairman and Managing Director H. S. Upendra Kamath launched the RuPay debit card in Bangalore last week in the presence of NPCI CEO A. P. Hota, the release added.

Wednesday, June 26, 2013

RuPay cards can be used online

Account holders in rural banks and small cooperatives can now make online purchases with the National Payment Corporation of India launching an e-commerce solution for its RuPay card. RuPay is India's answer to Visa and MasterCard and has been set up at the behest of the Reserve Bank of India (RBI) to bring down transaction costs and spread electronic payments.

"Functionality across ATMs, credit card point of sale terminals and over the internet are the holy trinity of any electronic payment service. Until now, the card could be used in ATMs and as a debit card only. Now, with the e-commerce platform also available, banks should have no reluctance in issuing RuPay cards," said A P Hota, MD & CEO, NPCI.

Over 30 lakh RuPay cards have been issued since it was launched in March 2012. RuPay debit cards are being issued by 20 commercial banks, 32 RRBs and over 75 co-operative banks. As against this, commercial banks have already issued over 30 crore debit cards, most of them on the Visa and MasterCard network.

What makes RuPay transactions distinctive from Visa or MasterCard transactions is that the ATM pin number doubles as the secure code since RuPay manages both the ATM and e-commerce network.
Speaking at the launch, H R Khan, deputy governor, RBI, said that the objective was to ensure that RuPay transactions touched every Indian by 2020.

"The whole purpose of a payment system is to reduce the use of cash. One of the unintended consequence of increasing the number of ATMs has been that demand for cash has actually gone up," he said.
Khan said that RBI has directed banks to improve the security level on cards by introducing a chip and pin-based payment system by end-June 2013. "We will be reviewing the progress in the next couple of days," he said.

The company will set up machines and earn revenues from fees for every transaction from the card-issuing bank.