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

Sunday, March 12, 2017

RuPay transactions on online sites during April 2016-January 2017 is 61.79M



For the period between April 2016 and January 2017, 61.79 million transactions took place on e-commerce websites using RuPay cards. The value of these transactions stood at Rs 4,139 crore. Meanwhile, RuPay card usage at POS terminals for the time period stood at 139.26 million transactions and the value of these stood was Rs 21,227 crore.

Predictably, RuPay card usage at e-commerce sites and POS machines shot up during demonetization period. In December 2016, RuPay saw 11.97 million transactions at online sites with a value of Rs 1,095 crore. POS machine transactions with RuPay cards stood at 47.27 million with the value of the transactions at Rs 7,005 crore.
To give context, for the full financial year 2015-16, e-commerce transactions on the card network stood at 10.24 million transactions with a value of Rs 576 crore.
Note that despite accounting for more than 40% of debit cards issued in the country, RuPay’s usage at online sites and POS machines is low. That can be attributed to the fact that a majority of debit cards issued were from the Jan Dhan Yojana financial inclusion programme.
From MediaNama’s interview with National Payments Corporation of India (NPCI) CEO and MD in may 2016:
On POS and e-commerce, we have not grown our share significantly. The market share for them is still bout 5-6% because the bulk of our cards are  Jan Dhan Yojana cards. The mainstream cards are about 85 million and the Jan Dhan cards are about 180 million. And most of the e-commerce and POS transactions are from mainstream cards.”
However, it is worth noting that the average ticket size of transactions of RuPay cards at ATMs and POS terminals is comparable to the ticket sizes of all debit cards issued. From an April 2016 report from JM Financial, at ATMs, RuPay’s transaction size was Rs 3,045 while at POS terminals, the ticket size was Rs 1,700. For all debit cards, the corresponding figures stood at Rs 3,092 and Rs 1,700.
Bharat QR
Last month, Visa, MasterCard, RuPay and American Express launched the BharatQR an inter-operable QR code payment system for card networks and banks. Around the same time, the Reserve Bank of India (RBI) proposed new slabs for debit card merchant discount rate (MDR) banks will be allowed to charge merchants. It proposed differentiated MDR between acquiring infrastructure involving physical terminals (POS machines, mPOS etc) and digital acceptance infrastructure models (such as QR codes). QR codes payment through cards would attract a fee of 0.3% to 0.85% for merchants. MDR is an inter-bank exchange fee that banks charge for enabling digital transactions. It remains to be seen if BharatQR will increase the usage of debit cards.

Sunday, February 26, 2017

Mastercard, Visa And Rupay Come Together To Launch BharatQR For Digital Payments


Come Monday, Indians will have yet another way to pay.
This time, it’s a QR (quick response) code-based payment solution that will allow merchants to accept digital payments from those who hold a debit card even if they don’t have a card swiping terminal. The product, called BharatQR, has been jointly developed by Mastercard Inc., Visa Inc. and Rupay. It will be formally launched on Monday in Mumbai.
It becomes the second major digital payment option being promoted by the government after the Unified Payments Interface (UPI) based BHIM app. Both are being pitched as an alternative to cash following the November 8 demonetisation decision. While currency availability has now started to normalise, the government is trying to encourage digital payments by making them more convenient and cost effective.

How QR Code-Based Payments Work

A QR code-based payment system works on the existing network of card companies like Mastercard, Visa and Rupay. This means that anyone holding a debit card from any of these providers can pay using a QR code, provided they have downloaded an app from their bank which supports this payment option.
If a customer has the app and wants to make a payment at a merchant who doesn’t have a card swiping machines, he can simply scan the merchant’s QR code and transfer the money directly from the bank account.
Private payment firms like Paytm already offer this facility, but both parties need to have a Paytm account to use it.
BharatQR attempts to overcome this limitation by allowing people to pay without having to choose one payment network over another. This will, however, need a large number of bank apps to support such payments.
QR-based payments have an added advantage of being infrastructure-light. This means that a merchant doesn’t require a lot of equipment to accept digital payments, which reduces costs.
Such a payment system has the potential for take off as it falls under the digital point-of-sale solution segment, for which the Reserve Bank of India (RBI) recently proposed lower merchant discount rates in its draft circular.
Moreover, penetration of card payment infrastructure in India is abysmally low. As of October 2015, there were only 12 lakh point of sale terminals in the country and there are only 6.7 card transactions per capita, much lower than Russia’s 47 and Brazil’s 55, according to a March 11 report by the National Payments Corporation of India and JM Financial Ltd.

A Crowded Payment Ecosystem

The launch of BharatQR will add to an already crowded market for digital payments. There are at least a dozen non-cash payment mediums out there including UPI, mobile wallets, net banking, debit cards and soon-t- be-launched Aadhaar Pay, among others. Individual firms like Paytm also have their own QR- and non-QR-based payment products.
Not all such products have worked.
For instance, Mastercard had launched a QR-code pased payment system in November 2016 called Masterpass. This product, however, remained limited in its reach as it was launched with a tie-up with only RBL Bank. Mastercard will now work with the government to develop BharatQR, which is a wider cross-platform product, Murali Nair, senior vice-president for market development-South Asia at Mastercard, told BloombergQuint in a response to an email on January 23.
Visa declined to comment on the story.

Sunday, January 22, 2017

Issue of RuPay cards jumps post-demonetisation


Banks in the country have issued nearly 60 per cent more RuPay cards for Pradhan Mantri Jan Dhan Yojna (PMJDY) account-holders in the two months following demonetisation of ₹500 and ₹1,000 currency notes on November 8 than they had issued a year prior to that.
Banks had added around 2.83 crore new RuPay cards from November 25, 2015, to November 9, 2016. Compared to this, in just two months following demonetisation, nearly 1.56 crore RuPay cards were issued.
The number of RuPay cards increased to 19.43 crore by November 9, 2016 from 16.6 crore as on November 25, 2015.
Of the 26.68 crore PMJDY account-holders, nearly 21 crore (78.71 per cent) had RuPay cards by January 11.
RuPay card is an initiative by the National Payments Corporation of India (NPCI) to allow all Indian banks and financial institutions to participate in electronic payments.
Aadhaar seeding
In spite of the Prime Minister’s endorsement of JAM (Jan Dhan, Aadhaar and mobile) vision on several forums, the seeding of Aadhaar numbers with PMJDY accounts remained at 42 per cent of the total PMJDY accounts in November 2015. Of the 19.34 crore accounts, only around 8.19 crore were seeded with Aadhaar numbers as on November 25 2015.
The Prime Minister had stated that the JAM vision would serve as the bedrock of many initiatives to come.
Aadhaar seeding with bank accounts crossed the 50 per cent mark only in August 2016.
In the one year to November 2016, banks seeded 5.49 crore more accounts with Aadhaar numbers.
Of the 25.51 crore PMJDY accounts, around 13.68 crore were seeded with Aadhaar by November 9, 2016. During the post-demonetisation period between November 9, 2016, and January 11, 2017, banks seeded 1.67 crore more accounts with Aadhaar numbers.
Of the 26.68 crore PMJDY account-holders, nearly 15.36 crore (57.58 per cent) were seeded with Aadhaar numbers by January 11.

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.

Sunday, April 10, 2016

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

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

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

Sunday, November 29, 2015

Govt extends RuPay card usage condition to 90 days regarding insurance claim

Under Pradhan Mantri Jan Dhan Yojana (PMJDY), RuPay Debit Card, with an in-built accident insurance cover of Rs 1 lakh, is provided to account holders. About 16.54 crore RuPay cards have been issued so far under PMJDY.

Rupay

Government has extended RuPay card usage condition to 90 days for a claim under an in-built accident insurance cover in case of RuPay Classic cardholders with effect from November 25, 2015. Under Pradhan Mantri Jan Dhan Yojana (PMJDY), RuPay Debit Card, with an in-built accident insurance cover of Rs 1 lakh, is provided to account holders. About 16.54 crore RuPay cards have been issued so far under PMJDY.
One of the stipulation of meeting the claim under accidental death and/or permanent disablement was that the cardholder has to carry out at least one successful financial or non-financial transactions at a merchant establishment or at ATM or micro ATM or e-commerce transaction, up to 45 days prior to the date of incident, resulting into accidental death /permanent disability.
“This condition was posing problem to RuPay cardholders. Requests were received to increase this condition of 45 days,” Finance Ministry said in a statement.
The issue was taken up by government with National Payment Corporation of India (NPCI), which operates the scheme of RuPay debit cards.
“NPCI has extended 45 days usage condition to 90 days for RuPay Classic cardholders with effect from November, 2015. Accordingly, accident arising on or after 00:00:01 November 25, 2015 will be considered for extended period,” it said.
However, claim intimations on RuPay Classic cards where accident has occurred before November 24, 2015 will not be eligible for claim benefit under 90 days usage condition.
As on November 20, out of 697 claims lodged for accidental insurance under RuPay debit card in PMJDY accounts, 644 claims have been disposed off.

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.

Tuesday, October 20, 2015

How Aadhaar card has made your life easier



How Aadhaar card can make your life easier


Supreme Court allows more instruments to use the biometric card.

Image: Many transactions in the financial sector are finally getting linked to the biometric card. Photograph: Reuters
Soon, linking the employee provident fund account with the Aadhaar card can make life much easier for employees.

K K Jalan, central provident fund commissioner, Employee Provident Fund Organisation, explains: "With the Supreme Court (SC) deciding to allow linking of PF with Aadhaar, it will help us go totally online. We wanted to use Aadhaar to give unique benefits to subscribers, like settlement of accounts through the online method. This can only be done if the account is linked with the biometric card. At present, for claims settlement, we are totally offline."

With the SC adding four more schemes (Jan-Dhan Yojana, Mahatma Gandhi Rural Employment Guarantee, EPF and pensions) where Aadhaar may be used, many transactions in the financial sector are finally getting linked to the biometric card.

Earlier, the use was limited to getting foodgrain and kerosene under the Public Distribution System and for cooking gas.

Image: Aadhaar has been allowed for pension schemes. Photograph: Reuters
Benefit
Says Guru Malladi, partner & leader, advisory services (government & public sector), EY: "For multi-channel service providers this is a welcome step. While there can be no denial of service if one does not have the card, it will help make things simpler for ones who decide to share their Aadhaar details."
For example, as Aadhaar has been allowed for pension schemes, the money can be deposited directly to a pensioner's account.
Even if the pensioner dies, things can move rapidly if his/her nominee's card details are with the department.

At present, it takes three to six months for transfer of such details.
Sushila Pai (name changed) lives with her 92-year- old mother in Mumbai's outskirts.

When her brother who'd retired from a state government organisation passed away, the pension amount was supposed to have passed to the nominee, their mother.

However, as the mother was 92 years and could not travel to the bank or even sign, bank officials had to come every month to get her thumbprint on cheques for withdrawal of pension. Frustrated with the process, the family withdraws the pension once in a quarter or six months.

Even the transfer of pension took over six months because bank officials had to come several times to take the thumbprints.

If Pai's mother had an Aadhaar card and had shared the details with the bank as the nominee of her son's pension, the transfer would have been much simpler.

Image: Usage of Aadhaar will soon be extended to other instruments like purchase of mutual funds. Photograph: Reuters
More products?
When Attorney General Mukul Rohatgi requested the SC to add the opening of bank accounts with a unique identification number, the court would not make more modifications.

However, experts hope this usage of Aadhaar will soon be extended to other instruments like purchase of mutual funds (MFs), insurance policies and so on. Chief executives of MFs believe this development will allow them to exponentially extend their reach.

At present, if distributors have client applications from another city, it is a big problem, as the process of physical verification is long.

Many online distribution companies do video conferencing as physical verification.

Image: The issue is about the authenticity and veracity of the database. Photograph: Reuters
Quiet spread
Backed by the Reserve Bank of India's permission to use Aadhaar, many banks have already started using it aggressively.

Some even insist on the card when one applies for a bank account or loans.
Also, the income tax department is making life easier for taxpayers who are willing to link their Aadhaar while filing returns.

Despite filing a return online, taxpayers had to take printouts of the acknowledgement and send it by post to the department. Now, those who have linked the card need not do it.

The problem
The apex court has not allowed mandatory use of Aadhaar. Without this, most financial institutions will be wary.

However, experts also believe such a development would be premature, for many reasons. At present, the Unique Identification Number covers only 900 million accounts, roughly 75 per cent of the population.

"Once we have reached 90 per cent or more, the courts will look at the government's plea to make it mandatory more favourably," says a tax expert.

 However, it is not only about coverage. Take the case of Anwar Sheikh, an assistant with a law firm, as an example.

He applied for the card, with his family. While the others got their cards in a couple of months, his brother and he did not.

After chasing the department and calling the helpline several times, he was told his documentation had not been received. He reapplied and got his card after a year.

What is more surprising is that when he made contact with the department, he was asked to send the details in a format.

When he did so, there was no response. "How can someone's documentation, eye scan, fingerprints simply disappear from the system? It is what worries me about the idea of a single identity like Aadhaar," says the lawyer.

Image: There is a lot of personal data already floating around. Photograph: Reuters

Voluntary vs mandatory

There is a strong debate on whether it should be made mandatory or not.
Pawan Duggal, cyber security lawyer, feels the government should not do so as of today because Aadhaar is based on biometric information, collected using a computer system. This means it is based on information in electronic form.

It is, therefore, governed by the Information Technology Act, which states that such information needs to have adequate security.

"It's not normal data - it's sensitive personal data. If it's not properly retained and securely maintained, it can be leaked out and the entire identity will be compromised," says Duggal.

Image: It won't be a bad idea to get an Aadhaar card and use it for transactions you are comfortable with. Photograph: Reuters
The bigger problem, as Duggal highlights, is that one doesn't know how the government is complying with the IT Act, as there's no information on data safety procedures adopted. People are clueless on the compliances done under the Act.

Some others feel the privacy issues will be resolved over time. "It is an opportunity for us to review our 70-year-old privacy laws. The security establishment around the card has to be created," adds Malladi.

According to him, there is a lot of personal data already floating around.
For example, with travel to the US and UK, one has to give biometric data even before entering the countries. Many others, like Dubai, seek data for people who are there even in transit. All this data can theoretically be misused.

The issue is about the authenticity and veracity of the database. This is the reason why some financial institutions, like MF companies, are not allowed to accept it as a proof, which can have bigger financial ramifications.

While this debate will be on for some time, or perhaps a very long time, it won't be a bad idea to get an Aadhaar card and use it for transactions you are comfortable with.

What is the Aadhaar case about?
  • After a few government departments made Aadhaar compulsory, several petitions were filed
  • Supreme Court impleads all states and Union Territories in the case
  • The principal opposition to Aadhaar in the SC turns out to be the question of privacy
  • The government's defence: Only basic identity data required
  • SC restrains UIDAI from transferring information to any agency without the written consent of the Aadhaar card holder
  • The attorney-general argues that a Right to Privacy is not guaranteed under the Constitution
  • SC refers the privacy question to a larger constitutional bench
  • A five-judge bench, accordingly, set up to hear the petition
  • Going forward, SC to look at whether there is any Right to Privacy guaranteed under the Constitution

Monday, October 12, 2015

Paytm to launch virtual 16 digit Rupay card




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

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


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

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

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


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

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

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

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

Monday, September 14, 2015

NPCI plans to roll out three new versions of RuPay

National Payments Corporation of India will launch a Mudra card, a credit card and an international card within the next one year

In a bid to promote the use of RuPay, the Indian version of payment settlement card, the National Payments Corporation of India (NPCI) is planning to roll out three new versions of the card within the next one year.

Currently, RuPay card is being issued as debit and Kisan cards, along with the opening of the saving bank accounts.

The company will launch a Mudra card, a credit card and an international card. NPCI, which had launched the RuPay payment scheme, is in talks with the US, Japanese and Chinese bank card associations to enable Indians avail of international services wherever these firms are operating.
RuPay is a card payment settlement system that competes with Visa and MasterCard. Since its launch in March, 2012 until August 2014, 35 million such cards had been issued.

Mudra Bank co-branded card will be a new card which will be introduced in association with Mudra Bank, to cater to entrepreneurs while the new credit card will pave way for the further acceptance of the RuPay brand among the customers.

Speaking to reporters here on Monday, M Balachandran, chairman, NPCI said for the international card, the corporation has tied-up with Discover Network Merchants, which is the third largest in the US and Europe and the issuer of Diners card and is in the final stages of talks with JCB (Japan Credit Bureau) and China UnionPay.

As per the terms with the credit bureaus, while their cards will be allowed to used in India, through NPCI network, and similarly through their network RuPay cards will be allowed to access in any part of the world. “With these tie-ups we will be able to cover almost major parts of the world,” said Balachandran.

He was in Chennai to kickstart a nation- wide e-Payment literacy workshop on the eve of World Financial Literacy Day.

To increase the user base, the government has asked all the public sector banks to issue their customers the RuPay cards. Balachandran said that currently NPCI has a capacity to handle 20 million transactions per day, and it will be expanded to 40 million in the next two months and further to 100 million in one year’s time in order to facilitate all the government subsidy transactions. DBT transactions alone estimated to be around R1,159 crore through 44 schemes in 94 districts across the country.

“Once the state governments also start using our system, we need to have more capacity for which we are getting ready,” said Balachandran.


NPCI would invest around R100-150 crore every year as capital expenditure to enhance capacities. Transactions under NPCI include withdrawals from ATMs, point of sale operations and quench clearing.

http://www.financialexpress.com/article/industry/banking-finance/npci-plans-to-roll-out-three-new-versions-of-rupay/131971/

RuPay cards in currency among bank users: official



Around one lakh of the nearly two lakh customers of Puduvai Bharathiar Grama Bank, the only Regional Rural Bank in the Union Territory of Puducherry, have been given RuPay cards, said D. Devaraj, Chairman of the bank at an e-Payments Literacy Workshop on Tuesday.

The workshop held in Puducherry is among 115 such workshops being held across the country as a programme of the National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India and an umbrella institution for all retail payment systems in the country. Here, the workshop was conducted by the Puduvai Bharathiar Grama Bank in association with NABARD.
A booklet on e-payments literacy manual was also launched at the event by Shanthamurthy, Joint Director, Planning and Research Department.

The workshops are aimed at promoting e-payments and safe banking practices. Around 200 customers and staff of the Puduvai Bharathiar Grama Bank participated in the interactive workshop.

New app planned

A.R. Ramesh, chief project officer, NPCI, Mumbai, took the audience through various aspects of e-payments like safe usage of ATM cards, fund transfer through IMPS (Immediate Payment Service), benefits of linking Aadhaar card and mobile phone number to bank account, and answered their doubts. Mr. Ramesh said that the NPCI has plans to launch a mobile application bringing on board a large number of billers for the convenience of customers. He also spoke about the benefits of the RuPay card, an initiative of NPCI, with the card being linked to insurance schemes, such as Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana.

“The RuPay card is as good as cash. It is accepted on leading websites, including 30,000 merchant websites, besides booking on IRCTC website and airlines websites also,” he said.

Puducherry has high usage of e-payments, said Ravichandran from Puduvai Bharathiar Grama Bank, adding that more than 50 per cent customers at the bank use some kind of e-payment methods. The event was also attended by O.S. Gnana Sekaran, Assistant General Manager, Indian Bank Zonal Office, Puducherry, and P. Veerashankar, Deputy General Manager, NABARD, Chennai. A workshop was also held at Karaikal.

One year of Jan Dhan: Many loose ends yet to be tied

One year of Jan Dhan: Many loose ends yet to be tied

Paramjit Kaur, a resident of Salempur village in Punjab's Ludhiana district, can barely hide her excitement when asked about the launched last year. She was one of the first women from her village to open what she calls the "zero balance" account. And she is one of the lucky few to have a passbook.

The entries, all in English, show her as a student (she is actually a home maker) and that she has not made a single transaction since the account was opened on August 28, 2014. Her father's name is given in the column for wife and the nomination column says "not registered".

All the people this reporter spoke to in the village had opened "zero balance" accounts. Few of them received passbooks. None has received a yet. They were not aware of the benefits of the scheme and did not know about the conditions to claim them.


The situation was no different in the neighbouring Humbran village where 55-year-old enrolled himself for the scheme and has a passbook. But he, too, has not made a single transaction and is yet to receive the RuPay card, making him and others like him ineligible for the overdraft facility and accident and life insurance benefits that come with these accounts.

According to the details of the scheme, an account holder becomes eligible for an overdraft of up to Rs 5,000 only after satisfactory operation of the account for six months and the RuPay card that comes with the account has an inbuilt accident insurance cover of Rs 1 lakh. According to government data, 179 million accounts were opened under the scheme till August 26, 2015. However, only "10 lakh (one million) accounts have been found eligible for overdraft. Out of these, the overdraft facility has been availed by 164,962 account holders."

The sense one gets after talking to a number of bankers is the scheme, though laudable in its objective, is suffering because of procedural complexities. "Since most of these accounts were opened in a great hurry and at organised camps, many entries need to be checked and rechecked. The feedback I receive is that entries, at least in 60-70 per cent cases, with regard to nomination just do not exist. In such a scenario, how can insurance claims be settled?" asked a middle-level banker with a leading public sector bank posted in Ludhiana.

Bankers say the reason so few account holders are eligible for overdraft is many of them have not strictly followed the know-your-client (KYC) norms. Non-existence of mandatory transactions within 45 days of the opening of the account is another reason. "We sent RuPay cards to addresses given by the customers. A majority of them came back to us as those addresses just do not exist. It is a huge problem for us," a Delhi-based banker with another government-owned bank told this reporter.

Bankers also say that since other schemes like the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and are linked with Jan Dhan accounts, their success will depend on how the loopholes in the Jan Dhan accounts are plugged. "Suppose the premium for any of these schemes is to be deducted from the Jan Dhan account. If there is no transaction and hence no balance, how will the premium be deducted?" observed another banker.

Lack of awareness about the scheme, especially in villages, has created a situation where expectations are turning into disappointment. "All the workers who work in my field had opened Jan Dhan accounts. Once in 15-20 days they go to bank branches to check whether they have received some money. Once they get to know that no amount has been credited, they come back thoroughly disappointed," Jagjit Singh, sarpanch of Chankoin Khurd village in Ludhiana district, told this reporter.

(Our experience with how the Jan Dhan Yojana has unfolded in some villages in Ludhiana district raises questions about the sustainability and effectiveness of the financial inclusion scheme. We must, however, make it clear that we have not conducted an all-India survey, but base our observations on discussions with a few villagers in Ludhiana, selected at random, and a few bankers. The picture may be different in other parts of the country.)


http://www.business-standard.com/article/economy-policy/one-year-of-jan-dhan-many-loose-ends-yet-to-be-tied-115091200834_1.html

Wednesday, August 26, 2015

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

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

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

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

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

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

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

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

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

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

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

Now, Shop with IRCTC RuPay Card

Now, Shop with IRCTC RuPay Card

Now passengers can do shopping by using the IRCTC RuPay prepaid card as Indian Railway Catering and Tourism Corporation has expanded its range of service.

IRCTC Union Bank Prepaid Card was launched in collaboration with the Union Bank of India and the National Payment Corporation of India in May.

Till now, the card was used only for rail bookings.

The services are now being extended to allow payment at merchant locations like restaurants, malls and also for online shopping as we have got the necessary permission for expansion of the service, IRCTC chairman and managing director A K Manocha said.

The card allows for easy transactions on the railway booking website, with the first five transactions each month offered free of transaction charges, and an attractive rewards point system on every transaction.

"The IRCTC Union Bank Prepaid Card has already notched up 7,000 users since its launch, and the number of prospective users is showing an upward trend," Mr Manocha said.

A PSU of the Railway Ministry, IRCTC had recently tied up with Amazon, a leading e-commerce company, to offer its customers the online shopping opportunities in addition to its regular travel ticket booking and hotel accommodation booking services.

"The IRCTC Union Bank Prepaid Card will further expand the online shopping preferences of our patrons, besides online rail ticketing," Mr Manocha said.

Friday, June 12, 2015

‘55% of RuPay cards active under Jan Dhan Yojna’

 AP HOTA, MD and CEO of NPCI

Exploring the feasibility of networking with China, says NPCI chief

As India’s own card-payment scheme RuPay aims to go global, National Payments Corporation of India (NPCI), which conceived and launched the scheme, has tied up with Chinese and Japanese companies to help citizens of these countries use Indian ATMs and Point-of-Sale terminals. AP Hota, Managing Director and CEO of NPCI, says the corporation plans to take this one-way relationship further and bring more activity into the home-grown card network. Edited excerpts from an interview:

How will the tie-up with China UnionPay International be beneficial?
We are exploring the feasibility of network-to-network relationship with China. Initially, the relationship will be one-way, that is, China’s UnionPay card-holder when they come to India can use Indian PoS terminals and ATMs. Currently, all the ATMs and 99 per cent of PoS terminals are part of NPCI.
Next, we will look at commercial arrangements between NPCI and China Union. They will have their approval and we will now seek approval from our member-banks and we can expect this in the next two months.
Later, the technical integration will be done and, in anticipation, we have already started the process. We may look at going the other way later — that is, our card-holders can use ATMs and PoS terminals in China.

What is the status on cards under Jan Dhan Yojna? How many are active?
Over 130 million cards (13.7 crore according to the Pradhan Mantri Jan Dhan Yojna website) have been dispatched as on April-end. According to Finance Ministry data, 55 per cent of the 140 million cards issued under Jan Dhan are active, though previously it was 70 per cent. However, we are hopeful that once MNREGA is implemented, the level of inactive accounts will come down. Direct Benefits Transfer (DBT) has also helped in making them active.

The RBI has said it will roll out guidelines for issuing mobility cards. When will they be launched?
We are working with the Ministry of Transport to make payments easier in smart cities by issuing mobility cards. We have built the specifications based on both national and international standards.
This will facilitate usage of the cards at grocery shops or while buying tickets for any mode of transport through the contact-less system.
Also, the requirement of contact-less transactions will be huge and procuring large terminals in accordance with Indian standards will also serve the ‘Make in India’ campaign. We have made several presentations and the Ministry is examining our specifications. 

Will you be using the same debit cards?
Yes, it will have to be EMV (Europay, MasterCard, and Visa) enabled and have NFC (near field communication) technology. From September onwards, we will have to issue EMV-based cards as per RBI mandate.
It will be a challenge to replace the existing Jan Dhan Yojna cards into EMV-enabled ones. As of now, the RBI has not given any deadline on the replacement.

Jan Dhan rolls on, but ‘dhan’ in accounts slow to accrue




About 47 per cent of bank accounts opened under the Pradhan Mantri Jan-Dhan Yojana in Karnataka have zero balance

Banks in Karnataka have gone about creating no-frills accounts under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) with great zeal and created close to 72 lakh accounts since August 15, 2014. The difficult task, however, has been ensuring transactions through the accounts, with nearly half of them categorised as ‘zero-balance’ accounts as of now.
Massive drive

Statistics accessed through SyndicateBank, Karnataka’s nodal bank for the scheme, shows that banks in Karnataka created 71.68 lakh accounts under the PMJDY between August 15, 2014 and May 23, 2015. Of them, 33.88 lakh are zero-balance accounts, which translates to 47.27 per cent.
K. Preetam Lal, General Manager of SyndicateBank, said population in the State yet to have bank account was “less than one per cent”, which includes migrant workers and people in very remote areas. He said the banks had not insisted on opening with a balance in the first phase, but the next target was making them operational, which they hope to achieve by the year-end.
A micro reading of the zero-balance accounts across districts under this much-talked-about financial inclusion mission throws up some interesting patterns. Predictably, many districts with over 50 per cent zero-balance accounts lie in north Karnataka, with Bagalkot (61.19 per cent), Haveri (60.64 per cent), Koppal (57.95 per cent), Vijayapura (56.64 per cent) and Ballari (56.42 per cent) among the toppers.
The contrast

However, it is Bengaluru Rural district that has the maximum number of zero-balance accounts (81.15 per cent). In contrast, Bengaluru Urban district has the least number of zero-balance accounts, at 29.87 per cent.
OD, but only with Aadhaar
People opening the PMJDY account are entitled to overdraft (OD) facility, but conditions apply. The account-holder should have “satisfactory” transaction for six months and he/she should be the head of the family. Another important condition is that he/she should mandatorily have an Aadhaar card, which is important for “reasons of regulation”. As of now, of the 71.68 lakh accounts, 41.25 lakh are Aadhaar-seeded accounts.
Reluctance for RuPay card
A PMJDY card holder is entitled to a RuPay debit card, but a substantial number of those who are entitled for the cards do not appear to be interested in taking them. As per the records, though 63.79 lakh debit cards have been issued, banks have reported that about 20 per cent of them have not been collected by beneficiaries.
* Total number of PMJDY accounts in State: 71,68,528
* Total number of accounts with zero balance: 33,88,737
* Total number of Aadhaar-seeded accounts: 41,25,839
* Total balance in accounts: Rs. 641.93 crore
* RuPay debit cards issued: 63,79,177

Thursday, May 14, 2015

SBI launches RuPay Platinum debit card

 

Country's largest lender State Bank today launched a RuPay Platinum debit card in association with National Payment Corporation of India (NPCI).


"With the growth of the Indian economy, our customers have evolved and their lifestyle and aspirations are at par with their global counterparts. It is an apt addition to our existing portfolio of debit cards," SBI Chairman Arundhati Bhattacharya told reporters here today.

Commenting on the product NPCI Managing Director and CEO A P Hota said, "The RuPay card comes with a special feature for the convenience of customers that is accepted at all payment channels- ATMs, PoS and eCommerce."

He said that NPCI will soon launch international RuPay debit cards allowing its customers to use them outside the country besides issuing RuPay credit cards by January 2016.

The card would be initially issued free to customers maintaining a quarterly balance of Rs 50,000.
The card offers various benefits like 5 per cent cash back on utility bills, complimentary airport lounge access, personal accident death and permanent total disability insurance cover of Rs 2 lakh, among others.

Currently, SBI has 19.7 crore debit cards in circulation and of which 4.5 crore are RuPay cards.
In the year ended March 2015, the bank saw a 37 per cent rise in its debit card transaction at Rs 30,785 crore from Rs 22,407 crore last year.

Meanwhile, replying to a query on SBI converting its office into a full fledged branch in Tehran after the country inked a pact with Iran to develop Chabahar port, Bhhatacharya said there was no immediate plan for it.

"We have to just wait and watch to see whether there is enough traction for us and then we will take a call," she said.




Sunday, April 26, 2015

Soon, RuPay ATM Cards for Student Account Holders

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

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

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

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

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

Sunday, April 5, 2015

RuPay Card Offers 1% Cashback: What to Know



RuPay Card Offers 1% Cashback: What to Know

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

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

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

Here are the other benefits of RuPay cards.

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

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

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

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

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

Railways launch RuPay pre-paid debit card

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

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

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

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

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

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

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

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