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

Tuesday, April 30, 2013

APGVB launches cards on RuPay platform

Andhra Pradesh Grameena Vikas Bank (APGVB) has launched ATM-cum-debit cards and kisan credit cards on the RuPay platform. 

“With this initiative, our small depositors and farmer-borrowers will have access to draw their money from any ATM owned by State Bank Group, ICICI, HDFC and AXIS Bank,” K. Lakshmana Rao, Chairman, APGVB, said in a release on Monday. 

The regional rural bank, sponsored by State Bank of India, was only second in its category to launch the service, he added. The Rupay platform is powered by National Payments Corporation of India as a rival to global payment product companies such as MasterCard and Visa. 

During the last financial year ended March 31, 2013, APGVB’s business crossed Rs 12,000-core mark with a net profit of Rs 164 crore.

Wednesday, February 20, 2013

List of Banks who provide Rupay Card

   
All PSU banks to join by 2012


Corporate Affairs Minister M. Veerappa Moily said all state-owned banks are expected to join the RuPay system by the end of this year, adding RuPay-based debit cards can be used by the consumers on the Internet from September, 2012. He was speaking at a brainstorming meeting of the banking sector organized here by the Indian Institute of Corporate Affairs on Tuesday.

The government had launched India’s first domestic payment card network, RuPay, to compete with Visa Inc and Mastercard Inc.
NPCI will soon provide a full range of card payment services including the RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards which will be accepted in India and abroad, across various channels like POS, internet, IVR and mobile etc. Initial focus of NPCI would be to approach those banks who have not been issuing any payment card at all. Regional Rural Banks and urban co-operative banks are ideal. In due course, it would approach other banks and enter the mature segments in competition with international card schemes who have already got a good presence.


Monday, January 7, 2013

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

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

The tech in use

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

Challenges

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

Friday, November 30, 2012

Oriental Bank launches 2 RuPay card variants

Oriental Bank of Commerce (OBC) on Saturday became the first bank to offer ‘RuPay Kisan Card’ with ‘Aadhaar’ authentication.
The Aadhaar number (unique identification number of the farmer) is stamped on to the card and on the magnetic strip behind it, making its use easier on micro-ATMs.
This is expected to provide a further thrust to the financial inclusion initiatives of the bank.
This will help a customer (farmer) with the Kisan card to not only withdraw funds from any ATM, but also use micro-ATMs through biometric authentication.
RuPay Kisan card will be issued by OBC to a select group of customers who now avail of the Kisan credit card facility from the bank.
In all, OBC has 4.41 lakh Kisan credit card accounts. So, potentially, this Kisan card could be handed out to at least 4 lakh existing customers.
OBC became the 25{+t}{+h} bank to use RuPay, a domestic card network set up by the National Payment Corporation of India. The NPCI’s debit card platform was launched in March last year. S. L. Bansal, Chairman and Managing Director, OBC launched two variants of the RuPay cards — RuPay ATM card and RuPay Kisan card.

Lower costs

These cards will significantly reduce transaction costs for the bank as the costs involved in RuPay debit card system are lower than the existing international card schemes. “The cost saving for OBC will be as high as 75 per cent”, said Bansal.
He also urged OBC’s 18,000-strong workforce to go in for RuPay ATM card. “Although we are a late entrant into the RuPay debit card payment platform, we should look at beating the big peer banks in terms of usage”.
Bansal said the RuPay cards would be given free to the bank’s customers.
A. P. Hota, Managing Director and CEO, NPCI, said currently around 1.2 million debit cards (issued by 25 banks) were under the RuPay platform. The RuPay system has been activated in 54,000 of the 6.5 lakh point of sale (POS) terminals in the country. By January next year, all the 6.5 lakh POS will be covered, Hota said.

Tuesday, November 20, 2012

RuPay cards to be acceptable at all PoS terminals by Jan

According to National Payment Corporation of India, at present it is accepted in 48,000 merchant terminals 

RuPay, the domestic debit card payment platform, launched by the National Payment Corporation of India, is likely to be acceptable at all PoS (point of sales) terminals in the country from January, a top NPCI official said here today.

"The RuPay will be acceptable at all PoS terminals from January. At present, it is accepted in 48,000 merchant terminals," NPCI Managing Director and Chief Executive A P Hota told reporters here on the sidelines of a banking summit organised by FICCI and IBA.

According to the RBI data, there are around 91,000 ATMs and 6.5 lakh PoS terminals in the country now. While the RuPay cards, launched in April last year, is acceptable at all ATMs, most of PoS terminals are yet to accept it.

PoS terminals are devices where debit and credit cards are swiped to carry out electronic transactions.


At present, around 22 banks use the RuPay card-based payment system in the country. While commercial banks like Union Bank of India, Bank of India, State Bank of India and Axis Bank have joined the RuPay network, the rest 18 banks comprise of regional rural banks (RRBs) and co-operative banks.


"We hope that many more banks will join the new payment system in the near future," Hota said, adding it will come up with an international debit card next June.


Hota also said given the cost advantage, which is around 40% lower than the international payment systems like Visa or MasterCard, banks would adopt RuPay to save cost.


Talking about the launch of credit cards, he said they are concentrating on debit card segment for three years, after which, they would look into credit card space.

Wednesday, April 4, 2012

Banks can save Rs300 crore annually by switching over to RuPay: NPCI


“Adoption of the RuPay Card will help banks save Rs250-Rs300 crore annually as our interchange charge is cheaper by up to 40% than what banks pay to foreign cards like Visa and MasterCard,” NPCI managing director and chief executive officer AP Hota said

Mumbai: A switchover to RuPay Card, the Indian version of Visa or MasterCard, can help domestic banks save as much Rs300 crore annually in transaction fees, reports PTI quoting the National Payments Corporation of India (NPCI), which launched the card last week.

“Adoption of the RuPay Card will help banks save Rs250-Rs300 crore annually as our interchange charge is cheaper by up to 40% than what banks pay to foreign cards like Visa and MasterCard,” NPCI managing director and chief executive officer AP Hota told PTI.

After years of preparation and soft launch, NPCI commercially launched RuPay Card on 26th March with major banks such as SBI, BoB, UBI, BoI, Corporation Bank and Axis Bank launching their domestic debit cards on the RuPay platform.

This makes the country second after China to have an indigenous electronic payment card.
Typically, banks pay around 1.8% of the transaction value in interchange charges. This is shared between the payment gateway operators like Visa and MasterCard, the card issuing bank, and the merchant.
While the card-issuing bank charges around 0.25%-0.30% of this, an equal amount is taken in by the merchant too, with the rest being retained by the card company such as Visa.

But Mr Hota said NCPI will retain only up to 60% of this around 1.2% going by the current fee structure.
According to the banks, foreign cards charge around $30,000-$50,000 as one-time fee and around $10,000-$30,000 quarterly.

In FY09-10, according to the Reserve Bank of India (RBI), domestic banks coughed out Rs490 crore in interchange charges to Visa and MasterCard.

For RuPay, there will be no one-time joining fee, and other charges would be around 40% less.
All the major banks are likely to be on the RuPay network in six months, Mr Hota said, adding that there was no compulsion to switch to the RuPay. “Our low cost should be reason enough for them to adopt our card. By March 2015, I expect at least half the market under the RuPay.”

His optimism comes from the low penetration among the regional rural banks, co-operative banks and small commercial banks due to high cost of joining foreign card payment system.

Another advantage, he said, is that as the transaction happens domestically, it will lead to lower cost of clearing and settlement, apart from the facility of paying in rupee.

Being a not-for profit company also helps us lower the cost, Mr Hota said.

He also said the RuPay would make debit cards safer by incorporating the pin number with each transaction. At present, only MasterCard requires the user to furnish the pin number every time the card is used.
RuPay will be accepted at all the 91,000 ATMs and over 6 lakh points of sale terminals in the country and in due course, it will be accepted on the Internet and also at ATMs/PoS terminals abroad. NPCI has finalised an arrangement with payment gateway Discover for international acceptance.

According to RBI data, there are nearly 27 crore debit cards in the country today.

SBI managing director and chief financial officer Diwakar Gupta said that though there is no compulsion, it makes business sense for banks to adopt RuPay.

Thursday, February 2, 2012

RuPay may Open the Gateway to Inclusion

Source : http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETM/2011/10/12&PageLabel=23&EntityId=Ar02300&ViewMode=HTML

A few years ago, an arm of the Reserve Bank of India had launched the inter-bank ATM switch, a device that allows automated teller machines to talk to each other. This prompted the RBI to waive off an additional transaction fee that debit card holders incurred on using ATMs of other banks. The move, which initially faced the flak of the banking industry, led to an explosion in ATM usage across the country. Another such flare-up looks imminent with the upcoming launch of RuPay, a domestic payment gateway akin to global networks such as Visa and MasterCards.
Though industry experts are once again skeptical on the government playing the role of a service provider, if the ATM experience is anything to go by, creation of a domestic payment network will widen the role of credit providers, giving a boost to financial inclusion in the country’s vast rural hinterland.
Coming at an opportune time, when electronic payments are being seen as a tool to reach out to the unbanked, the RuPay card system — an initiative of the RBI-promoted National Payments Corporation of India — is creating unease among global card associations as it will reduce overall transaction cost for banks by introducing competition to international card schemes.
Recently, Visa invited some 50 Indian urban co-operative banks to make a presentation on its products with an aim to lure local lenders to join the global payments network. Visa’s efforts to connect with urban cooperative lenders, hitherto not a priority for card associations such as Visa and MasterCard, just five months
ahead of the RuPay launch is being viewed by experts as prompted by fear of impending competition.
Currently, Indian banks pay . 200-300 crore to Visa and MasterCard for processing debit and credit cards. This cost is expected to come down after the launch of RuPay card system, which is likely to charge a lower processing fee. The benefit of a lower fee will be reaped by customers as well to whom the banks pass on the cost.
The RuPay system will also lower the cost of transactions for shops that are reluctant to use the electronic mode of payment on which they
currently lose 1.5% of their margin. “Currently, the merchant fee is significantly high and there is room to bring it down,” says AP Hota, chief executive officer, NPCI. China already has its domestic payment network Union Pay, a benchmark against which RuPay may be compared. Union Pay has 200 member banks, including 30 outside China, and is accepted in 104 countries. The European Union has also been talking about a region-wide payments network.
The RuPay system also aims to build an environment in which payment information remains within the country. “Why should the transaction go international and expose itself to various risks,” says Hota.
Highlighting the high cost of creating a payment network, Visa and MasterCard feel that payment networks work better when there are fewer of them.

Ajay Banga, chief executive officer, MasterCard, in his maiden visit to India, after taking charge, pointed out that the launch of a local card system will not dilute the relevance of global card networks. Several countries where domestic proprietary networks were set up had turned to MasterCard to ensure that banks have the latest technologies, including fraud management, sophisticated scoring, fast transaction approvals, among others, he said. If every country strives to set up its own payment network, it would not only be very expensive, but also lead to systemic inefficiencies, he added. Amex and Visa also feel that they will continue to remain relevant in a market where growth opportunity is immense. Of the total bank consumer transactions in India, less than 5%, or nearly . 1.14 lakh crore, are in the electronic form. While the urban middle class is slowly migrating to electronic payments for bills, millions of man hours are still wasted by people standing in queues.
Uttam Nayak, India head of Visa, says that the country has a long way to go in electronification of payments. “But where I look for answers is in the kind of investments they (NPCI) will bring in. Secondly, they will have to convince customers that it is the most secure, reliable and convenient mode of payment,” he says. 


ROAD MAP
In the first stage, NPCI has launched the RuPay debit card. The first such card was issued by Gopinath Patil Parsik Janata Sahakari Bank. Although, not a debit card, the RuPay ATM card allows customers of rural banks and small cooperatives to ac
cess a wider ATM network.
According to Hota of NPCI, which has PSU banks as its stakeholders — the roadmap for RuPay is ready. The company plans to start with a RuPay debit card by the end of this fiscal, which will be accepted in 50,000 domestic merchant establishments. In the initial phase, RuPay will not have an international reach and can be used only for domestic transactions. “But, currently, over 94% of all transactions by Indian cardholders are within India,” says Hota. “However, we will have a leeway from the RBI to talk to international players about the acceptance of this card outside India.” Subsequently, NPCI will roll out credit cards, but that would be three years from now. 


CHALLENGES

The immediate test for the RuPay payment system will be to strike a chord with rural merchant associations and shops in order to build a payment network where the poorest customer has access to electronic fund transfer.
Also, such a network would require an investment of more than . 1,000 crore by the banking industry without immediate returns. The Unique Identification Authority of India and Indian Banks Association have identified the need for 12-14 lakh micro-ATMs, which are point of sale machines given to business correspondents.
Moreover, an increasing usage of mobile transactions, which enable direct debit through mobile phones, could pose a major challenge to the RuPay.



Thursday, January 5, 2012

Indian 'Rupay' Card Causes Trouble In Asia For MasterCard, Visa

Source : http://www.forbes.com/sites/greatspeculations/2011/04/06/indian-rupay-card-causes-trouble-in-asia-for-mastercard-visa/

The National Payments Corporation of India has finalized the commercial launch of the proposed India card which would be a domestic alternative to the global payment processing firms. MasterCard is the second largest global payment solutions company in the world and provides a variety of services to support the credit, debit and related card payments of over 24,000 financial institutions globally and given the size of India, this could have an impact on MasterCard’s international transactions growth, which we discuss below.

Its main competitors are Visa, American Express and Discover Financial.

Transaction processing is the major revenue source for MasterCard and by our estimates constitutes about 32% of the $293 Trefis price estimate for MasterCard’s stock.

The Reserve Bank of India in 2009, had asked the Indian Bank Association to launch a non-profit payment solutions company to meet the requirements of domestic banks. After almost two years of planning, NPCI has finalized the name of the proposed card as Rupay which will launch later this year.

The Rupay will resemble China’s Union Pay which is the domestic real-time payment processing firm for Chinese banks.


RBI in its vision paper on payment systems in India said that the need for such a system arises from two major considerations: 1) the absence of a domestic price setter has caused the Indian banks to bear the high cost for affiliation with international card associations, and 2) the connection with international card associations resulting in the need for routing even domestic transactions, which account for more than 90% of the total, through a switch located outside the country.


Electronic Payment Market in India
India has been one of the fastest growing countries for payment cards in the Asia-Pacific region. According to the RBI, debit card transactions in India rose 49% in January 2011 to reach Rs. 37 billion (approximately $830 million) from about Rs. 25 billion ($557 million) last year. The number of debit cards in use also rose by 25% during this period. Credit card transactions also rose 28% in January 2011 compared to last year to about Rs 69 billion ($1.54 billion).

How is MasterCard Affected?
In our analysis of MasterCard, we estimate that the number of transactions processed by MasterCard will grow from 22.6 billion in 2010 to about 56.8 billion by the end of our forecast period at a compound annual growth rate of 14%. Much of this growth will come from the Asia-Pacific region as consumers in this region are only beginning to embrace widespread use of electronic payment methods.

If India card Rupay gained popularity and other countries in the Asia-Pacific region decide to follow suit, MasterCard’s number of transactions could only grow at a rate of lower rate than we forecast. In a scenario where the number of transactions processed by MasterCard would reach only 50 billion by the end our forecast period and grow at a slower rate of around 12% annually, this would cut our price estimate for MasterCard by about 5%

Tuesday, October 4, 2011

Rupay Card Launch Date - Rupay Card launch by fiscal end: NPCI

Source : http://www.financialexpress.com/news/rupay-card-launch-by-fiscal-end-npci/835407/0
Nearly a year after the soft launch as a limited-service debit card, the Rupay Card, which is the domestically developed equivalent of the Visas and MasterCards of the world, will offer full-service debit card services by the end of this fiscal. 

"We hope to commercially launch the Rupay Card before the end of this fiscal. We will be equipped to offer full service debit cards to our mainstream partner banks by February or March next," National Payments Corporation of India (NPCI) MD and Chief Executive Abhaya Prasad Hota said. 

"By then, we hope to integrate our software with the nearly 4.5 lakh merchant terminals across the country," he said. 

NPCI, set up by the Reserve Bank, has developed the Rupay Card in April. In 2009, RBI had asked the Indian Banks Association to launch a not-for-profit company and design a rival card to Visa and MasterCard. China has already developed a similar card called the Union Pay of China. 

Since April, the Rupay Card has been in use, mostly by rural and urban cooperative banks offering limited service. 

NCPI has so far roped in four banks -- two urban cooperative banks, one regional rural bank, and one mainstream commercial bank, Bank of India, which has issued this card to its financial inclusion customers. 

Hota said that five more banks, including mainstream banks like Corporation Bank and Syndicate Bank, are testing the card now and the former will complete the process by next week. 

The Rupay Card, once commercially launched as a full service debit card, would eventually replace global real-time payment processing leaders--Visa and MasterCard --from the domestic payment system, the NPCI head said. 

Hota further said that leading financial consultancy firm Ernst & Young India is assisting NCPI in developing and rolling out the national payment switch (NPS) software that is needed for the commercial launch. 

On delay for commercial launch of Rupay Card, NCPI chief Hota said that there are over 4.5 lakh merchant terminals in the country and without altering the software of these terminals, a national launch cannot take place. 

"We have to individually feed our software into these merchant terminals. But remote tweaking can be done only on around 40,000 of them. The rest have to be done individually. 

Out of the 4.5 lakh PoS (point of sale terminals), around 80,000 are cash machines and can thus be tweaked remotely. 

Thus around 1.2 lakh units will be ready for our software by next month," Hota said. 

For the rest of the PoS terminals, the corporation has already formed teams to go around the country to do the changes, he added. 

On the commercial fees that NPCI would be charging from the banks for the card, he said, "We plan to charge only 0.3 per cent of the transaction amount as our fee, as our objective is not immediate profit-making but popularising the card." 

Visa and MasterCard charge much higher than 0.3 per cent, but Hota did not specify the number. 

These foreign operators could not be contacted to check our their fee structure.
According to Hota, payments that banks pay to these overseas payment gateways is around Rs 400 crore annually. 

Today domestic banks have no option but to tie up with Visa or MasterCard for connectivity between cardholders, merchants and issuing banks not just within the country, but across the globe in the absence of a domestic card. 

In 2010, according to RBI data, domestic banks paid around Rs 500 crore as fees to these global card firms for processing their payments, 90 per cent of which were domestic transactions. 

Hota is hopeful that NPCI can make the card break-even within two-five years of commercial launch. 

The member banks have already invested around Rs 100 crore so far in the project. Of this, Rs 60 crore have gone into developing the Rupay Card and building the NPS network, Hota said. 

Hota also said he does not have immediate plan to enter the credit card space, saying that will involve tying up with external payment gateways, which would push up charges. 

"Hopefully we may be able to do that from the fourth year onwards. But our priority is the debit card segment now. 

Also, the full service debit cards will be only domestically operable as international debit cards will be costly for the banks." 

But he pointed out that as much as 95 per cent of the debit card transactions are done within the country only. 

Another area that NPCI is evaluating is the pre-paid cards market, which include travellers cards, gift cards and salary cards. 

As per the latest RBI data, debit card transactions rose 45.6 per cent in June to Rs 3,784 crore in June from Rs 2,597.5 crore y-o-y. There were over 23.95 crore debit cards in use in the country as of June 30, up 24.8 per cent over 19.19 crore in the year-ago period. 

Against this, credit card transactions rose 30 per cent in the month to Rs 7,191.11 crore, from Rs 5,538.75 crore y-o-y, despite a 6.7 per cent drop in the number of credit cards in circulation to 1.76 crore during the month. 

As per the data, credit card deals during the first quarter of this fiscal stood at Rs 22,127.5 crore, as against Rs 16,948 crore y-o-y, a jump of 30.5 per cent.
In 2010-11, transactions through credit cards went up 22.15 per cent to touch Rs 75,516 crore, while debit card transactions rose 46.46 per cent to Rs 38,692 crore. 

NPCI is registered as a company with nine public sector, private sector and foreign banks owning stakes. RBI will oversee its operations in initial years, but will be regulated by RBI throughout.

Friday, September 30, 2011

RUPAY CARD LAUNCHED IN INDIA

After almost two years of planning, the National Payments Corporation has at last finalised the proposed unique India Rupay Card which once commercially launched would be an domestic alternative to the global real-time payment processing firms like Visa and MasterCard.

"We have finalised name of the proposed card as Rupay at our board meeting here today. We have also finalised the logo for the same," a senior official of the RBI-set up National Payments Corporation of India (NPCI), told PTI this evening. The official sought not to be named.

The official further said the leading financial consultancy firm Ernst & Young(E&Y) will develop and roll out the entire architecture, including the design and software for the Rupay card rollout.

A senior E&Y official confirmed the development to this agency. He further said, the NPCI will initially launch a domestic ATM/debit Rupay cards to begin with and then would hit the credit card market later on.

In 2009, the RBI had asked the Indian Banks Association to launch a not-for-profit company and design a rival card, then tentatively called India Card (Rupay Card), that meets the requirements of the domestic banks.

And finally, RBI plan is materialising and Rupay will be like the Union Pay of China, which is the domestic real-time payment processing firm for Chinese banks, and was planned to be launched last year.