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

Wednesday, March 4, 2015

NPCI to come out with virtual form of RuPay debit card

After launching the RuPay debit card, National Payments Corp (NPCI) is set to come out with its virtual form in the next few months, a move that will give further push to smartphone-based transactions.

"We are planning to go for pilot of a virtual RuPay card over the next 4-5 months," NPCI Managing Director and Chief Executive A P Hota said here today.

 

NPCI is the nodal agency for all retail payment systems under the Jan Dhan scheme.
The physical plastic RuPay card carries a 16-digit number. Under the virtual form, there will be no need of a physical card and a transaction can be done with the help of the 16-digit number alone.
The initiative will enable all account-holders send and receive money from their smartphones with a single identifier which may include the Aadhaar number, mobile number or virtual payment address without entering any bank account information.

Average value of the card payment system per head as on date was Rs 1,500 and an average remittance stands at Rs 2,500. Under the new virtual system, the amount would be much less and may include school fee and grocery payments, he said.

The proposed payments banks are likely to provide this virtual card facility from the beginning, Hota said. "The specifications standards are now available for payments banks and hence it is a great opportunity for them."

Around Rs 8,000 crore worth of transactions are taking place through IMPS (immediate payment service) per month. What we are doing now is just putting another extra layer on the already existing system so as to make transaction more easy, Hota explained.

Currently, only around 20 per cent of the total transactions are happening through IMPS and hence NPCI is working on further simplification of the facility so as to make it more popular in future, he added.

Talking about authentication system for the virtual RuPay card, former Chairman of UIDAI Nandan Nilekani said "with everybody having cellphones, going forward the single- factor authentication can be the cellphone, replacing the physical cards."

"Later, Aadhaar-based authentication will come on mobile phone in 12-18 months. Second factor of authentication will be the Aadhaar number. We hope millions of transactions to take place through this mode in the country in days to come," Nilekani said.

Sunday, January 4, 2015

Jan Dhan: enrolees over 60 short-changed on life cover

A RuPay card under the Jan Dhan scheme may not be enough for nominees to get the death benefit of ₹30,000 when an account holder passes away. Some nominees found this out recently, to their surprise.

Gowramma (name changed), from Karnataka, passed away recently. State Bank of Mysore, where she is a Jan Dhan account holder, rejected the nominee’s claim for the death benefit of ₹30,000 as the deceased was above 60 years of age.

According to the Finance Ministry approved norms for life cover under the Jan Dhan scheme, the eligibility for risk cover ceases when a person turns 60.

These guidelines were framed long after the launch of the scheme and many elderly people had enrolled for the same when it was launched by Prime Minister Narendra Modi in late August. Under the current norms, the account holder will have to exit the life insurance scheme the day he or she turns 60.

State Bank of Mysore has till date received four cases each claiming death benefit of ₹30,000 under the scheme.

Of them, two claims were rejected straightaway as the deceased were aged above 60, sources in the bank said. 

The claims for the other two cases are being processed though the bank is not clear as to which LIC office the claim papers have to be sent for final settlement.

Confusion over claims

Public sector banks are in a state of confusion on the issue of handling claims. Even accident insurance claims are reaching the doorsteps of these banks. 

Although the banks have till date issued 8.4 crore RuPay cards for over 10 crore Jan Dhan accounts, they do not want to foot the death benefit bill for the life cover. They are only keen on having a foolproof mechanism to pass on the claims to Life Insurance Corporation. Both LIC and the public sector banks are yet to firm up a seamless mechanism for claims settlement under the life cover promised under scheme.

Meeting held

On Wednesday, representatives of the Finance Ministry, Indian Banks’ Association and public sector banks held a meeting to discuss the nitty-gritty of claims settlement for the ₹30,000 death benefit promised under the scheme.

There is a need to map LIC branches with those of the banks so that claims could be processed seamlessly, said the chief executive of a public sector bank.

Currently, banks are not fully aware about how to take the process forward in case nominees come up with claims. 

Indications are that the nominees will now be asked to furnish an affidavit confirming that the deceased was the head of the family or that he/she was an earning member of the family, and in the age group of 18-59.

Tuesday, December 16, 2014

Moving towards full financial inclusion

The President of India, Shri Pranab Mukherjee inaugurated today (December 11, 2014) a Financial Literacy Centre and a Financial Library at Dr. Rajendra Prasad Sarvodaya Vidyalaya in the Presidents Estate. A Financial Awareness Festival was also held in which students of Dr. Rajendra Prasad Sarvodaya Vidyalaya as well as residents of the Presidents Estate were trained in financial literacy using a model bank branch of the State Bank of India. NPCI through RuPay Cards gave Rs. 25/- credit to each student to buy books, educating them thereby about card transactions. Financial games, quizzes and other activities were also organized for students, children and parents.

The Rashtrapati Bhavan launched a campaign for turning the Presidents Estate into a financially inclusive township (FIT) on September 27, 2014.

The campaign included:-

A financial literacy programme.

Enrolling all residents in UIDAIs Aadhar scheme.

Opening of Saving Bank Accounts for the unbanked under the Pradhanmantri Jan Dhan Yojana.

Enrolment of people in Swavalamban, - a special scheme of the Pension Fund Regulatory and Development Authority for those belonging to the unorganized sector.

Issue of RuPay Cards to new as well as existing account holders of the United Bank of India within the Estate.

To develop a comprehensive strategy, an action plan was developed in association with representatives of United Bank of India, State Bank of India, National Payment Corporation of India,Pension Fund Regulatory and Development Authority, UIDAI etc. Financial literacy-cum-inclusion camps for residents of the Estate were organized on September 27-28, 2014 and December 7-9, 2014to enrol residents of the Presidents Estate in various schemes.Special attention was given to senior citizens, women, special children, domestic help and contractual workers.

Subsequent to the camp held in September 2014, the United Bank of India carried out a comprehensive survey through door-to-door mapping to ensure that there are no households left without any bank account. Domestic help and contractual workers not covered under any health scheme were also provided benefits under the Delhi Governments Arogya Yojana.

The pilot project to make Presidents Estate an FIT has been undertaken to establish a model of convergence in government programmes and services and ensure that benefits of various schemes accrue to all residents of the Presidents Estate, who number around 5000 persons.

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.

Jan Dhan scheme rush: Banks run short of passbooks

Beneficiaries of the Centre-sponsored Jan Dhan scheme are yet to receive their passbooks even after opening accounts two months ago as banks are facing a severe shortage of booklets.

According to a data provided by Syndicate Bank— the lead bank for the project in Meerut circle—over 1.75 lakh accounts have been opened under this scheme in Meerut. District manager of the lead bank, BD Pandey, said, "About 70% new account holders have been given the passbooks but the accounts are opened in such huge numbers in all the banks that it is not possible to provide passbooks to all the costumers. The crisis is not just in Meerut, but prevails in entire state. All the banks are sending their demands to concerned head offices but it will take some time to fulfil the demand."

The situation in Baghpat district is worst. Here, over 36,000 accounts have been opened under the scheme but only 40% costumers got their passbooks. A number of costumers did not even get their account numbers. A resident of Brahamanputthi village in Baghpat, Sonam, said, "I have been visiting the bank for last two months continuously but neither had I got my account number nor the passbook. Every time bank officers tell me that account number will be given with the passbook."

Amidst such situations, the residents are worried over the fact that how they would deposit their savings without having a bank account number and enjoy the benefits of the 'Jan Dhan scheme.'

Pradhan Mantri Jan Dhan Yojana is a scheme for comprehensive financial inclusion launched by Prime Minister, Narendra Modi on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014. Under this scheme, account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh. Those who open accounts by January 20, 2015 over and above the 1 lakh accident cover, they will be given life insurance cover of Rs 30,000.

A multi-wallet solution to aid NSDC’s mission

A multi-wallet solution to aid NSDC’s mission

Ever since its launch in 2010, the National Skill Development Corporation (NSDC), a not-for-profit public-private partnership, has been trying to re-skill young people with the help of training partners from key industrial sectors such as retail, manufacturing and automobiles in order to make them more employable. It successfully trained 1 million youths aged between 16 and 25 years last year and aims to take the number up to 3.3 million by the end of 2014. In return for training the youths, the training partners take a nominal fee—paid for by trainees from a reward amount they earn from NSDC for completing the training under the Standard Training Assessment & Reward (STAR) scheme, in partnership with the Bank of India. However, problems arose when training partners complained they had not received payments on time—and sometimes not at all. With the incentive to train drying up, NSDC had to quickly find a solution. The solution came in the form of a multi-wallet prepaid payment solution—India’s first— run by TranServ Pvt Ltd, a three-year-old electronic prepaid payments company in association with the Bank of India. This not only ensured that NSDC’s training partners got paid on time, but also helped the youths take charge of their own finances. The multi-wallet solution for NSDC was launched by TransServ’s chief operating officer Aditya Gupta and his team: co-founders Anish Williams who is also chief executive officer; Sandeep Ghule, chief marketing officer; Amar Habibullah, business head for Lucknow region; and Anand Kapadia who heads sales and distribution. The platform, which falls under the firm’s Shmart! flagship brand, was developed in-house by TranServ and was already being used by corporate clients. It was customized within 15-20 days for NSDC and launched on 5 February by then finance minister P. Chidambaram.

Read more at: http://www.livemint.com/Companies/DwUs65IIJYzP9Rr1dpcRvO/A-multiwallet-solution-to-aid-NSDCs-mission.html?utm_source=copy
 Ever since its launch in 2010, the National Skill Development Corporation (NSDC), a not-for-profit public-private partnership, has been trying to re-skill young people with the help of training partners from key industrial sectors such as retail, manufacturing and automobiles in order to make them more employable. It successfully trained 1 million youths aged between 16 and 25 years last year and aims to take the number up to 3.3 million by the end of 2014. In return for training the youths, the training partners take a nominal fee—paid for by trainees from a reward amount they earn from NSDC for completing the training under the Standard Training Assessment & Reward (STAR) scheme, in partnership with the Bank of India.

However, problems arose when training partners complained they had not received payments on time—and sometimes not at all. With the incentive to train drying up, NSDC had to quickly find a solution. The solution came in the form of a multi-wallet prepaid payment solution—India’s first— run by TranServ Pvt Ltd, a three-year-old electronic prepaid payments company in association with the Bank of India. This not only ensured that NSDC’s training partners got paid on time, but also helped the youths take charge of their own finances.

The multi-wallet solution for NSDC was launched by TransServ’s chief operating officer Aditya Gupta and his team: co-founders Anish Williams who is also chief executive officer; Sandeep Ghule, chief marketing officer; Amar Habibullah, business head for Lucknow region; and Anand Kapadia who heads sales and distribution.

The platform, which falls under the firm’s Shmart! flagship brand, was developed in-house by TranServ and was already being used by corporate clients. It was customized within 15-20 days for NSDC and launched on 5 February by then finance minister P. Chidambaram.

Under the multi-wallet solution, TranServ opens two wallets for trainees: one for payment to the training partners, which is not accessible to the trainee, and the other a general savings wallet. The fee for the training partners is automatically deducted from the token sum that the youths are paid every month.

The second wallet is linked to the Bank of India account, and gives the trainee a debit card which can be used at ATMs and points of sale, and also allows them account holder privileges so they can check the balance on phone, enquire about the last few transactions, report loss of card, ask for a statement or new ATM PIN, etc. Alternatively, card holders can check the balance from usage alerts that are sent to their mobile phones after each transaction. The card is issued for two years with the option to have it renewed. Bank of India pays TranServ a fee for this service.

Since March, when the multi-wallet solution was implemented, five lakh students have been enrolled for this solution by NSDC across 26 states. Further, 6,500 business correspondents have been facilitating this programme, with 3,000 applications received per day, making it the largest multi-wallet project in the country. Through this solution, TranServ has helped its 300 training partners recover Rs.200 crore from the total amount of Rs.400 crore due to them, which they are expected to receive by year-end. To ensure security and compliance with the process, TranServ’s multi-wallet solution has been reviewed by four banks: Bank of India, Kotak Mahindra, Ratnakar Bank Ltd and Axis Bank. Besides Bank of India, VISA is also TranServ’s partner for the solution. The so-called ‘benefit disbursement programme’ was chosen as a finalist in Emerging Payments Awards, UK, under the category of the best global government prepaid programme.

The award was created in 2008 to recognize significant and commercial achievements in the prepaid sector. TranServ was also awarded the Aadhaar Governance Award instituted by the Unique Identification Authority of India (UIDAI) in 2012 for its work in large scale financial inclusion and direct benefits transfer (DBT) programmes, enabling real-time transactions through VISA and RuPay, which could also be authenticated by Aadhaar. According to a Reserve Bank of India report in April, only 10-15% of the 369 million debit and credit cards in the company are used for online transactions.

TranServ’s Aditya Gupta believes such multi-wallet solutions could help greatly in increasing the awareness and ease of use of online transactions. Besides, this solution also helps in the government’s plans for financial inclusion by empowering millions of youths to take charge of their own finances, with their own bank accounts, said Gupta.

NSDC hopes to re-skill 500 million youths by 2022. Gupta feels confident that TranServ, with the help of its multi-wallet solution, will be a key finance enabler towards this end, as it prepares for the second phase of the NSDC re-skilling programme due to start shortly.

Monday, November 10, 2014

5 crore Jan Dhan accounts outside Rs 1 lakh accident insurance ambit

5 crore Jan Dhan accounts outside Rs 1 lakh accident insurance ambit

Five crore of the seven crore bank accounts opened under the government's flagship financial inclusion programme, Pradhan Mantri Jan Dhan Yojana (PMJDY), have fallen outside the ambit of the in-built Rs 1 lakh accident insurance cover as these accounts have seen no transaction since they were opened.

Bankers and insurance industry executives say rules require at least one transaction in the account in the preceding 45 days for an account holder to be eligible for the insurance cover. But of the seven crore accounts opened under the scheme, only 1.71 crore accounts have seen transactions while the rest have had zero balance since they were opened, which means there have been no transactions in these accounts.

PMJDY, which was launched by Prime Minister Narendra Modi on August 28, seeks to cover 7.5 crore un-banked households in the country in the first phase. It provides Rs 5,000 overdraft facility for Aadhar-linked accounts and RuPay debit card, besides a Rs 1 lakh accident insurance cover "If an account holder meets with an accident during the 45 days when there has been no transaction in his account, he is not entitled to the insurance cover," said a senior executive with state-run Vijaya Bank who is involved in implementing PMJDY.

5 crore Jan Dhan accounts outside Rs 1 lakh accident insurance ambit

The executive said most of the account holders seem unaware of the '45-day clause'. "We are trying to explain it to them," he said. National Payment Corporation of India (NPCI), which has an agreement with private sector HDFC Ergo to provide this insurance cover, is of the view that the accident insurance should not be looked as a plain vanilla welfare measure. "These are initial days of the scheme and there is no need to get disheartened," said AP Hota, managing director and CEO of NPCI."Most of these accounts will be soon linked with various direct benefit transfer schemes and then there will be regular transactions."

The government is all set to launch a modified direct benefit transfer for liquefied petroleum gas (LPG) on a pilot basis in 54 districts across the country. Under the scheme, LPG consumers will be able to get subsidy directly in their bank accounts even if they do not have Aadhaar numbers.

So far, under PMJDY around 32% accounts have been seeded with Aadhaar and around 4 crore have been issued the Rupay debit card.The prime minister had earlier said that a lot of effort will be required in promoting financial literacy among the new account holders. "New accounts also need to be kept alive and properly utilised.

Aadhaar numbers will need to be seeded in bank accounts," he had said.Towards this end, the finance ministry is working on to increase the reach of banks through various models, including banking correspondents to facilitate banking facilities.
Five crore of the seven crore bank accounts opened under the government's flagship financial inclusion programme, Pradhan Mantri Jan Dhan Yojana (PMJDY), have fallen outside the ambit of the in-built Rs 1 lakh accident insurance cover as these accounts have seen no transaction since they were opened.

Bankers and insurance industry executives say rules require at least one transaction in the account in the preceding 45 days for an account holder to be eligible for the insurance cover. B ..

Three-fourths of Jan-Dhan accounts hold zero deposits

Even as banks race to open up accounts under the Pradhan Mantri Jan-Dhan Yojana, only a quarter of the accounts opened till date have any cash deposited in them.

Official data reveals that of the 6.99 crore bank accounts opened till November 4, 75 per cent or 5.29 crore accounts have zero balance. The data also reveals that it is two non-BJP states — Uttar Pradesh and West Bengal — where the maximum number of bank accounts have been opened under the scheme.

However, 1.69 crore accounts under the scheme have managed to bring in Rs 5,294.10 crore of household savings into the formal banking channels. Back of the envelope calculations show that on an average each of the accounts have deposited Rs 3,100.

Officials, however, argue that opening of bank accounts is more important and savings will pick up gradually. “A bank account will help inculcate the habit of saving,” said an official. The Jan-Dhan Yojana was launched by Prime Minister Narendra Modi on August 28 with the goal of eradicating “financial untouchability” of the poor by opening at least one bank account for every family in the country in less than six months.

At the time banks had been given a target of opening 7.5 crore accounts under the scheme. Each of the accounts come with a debit card, Rs 1 lakh accidental insurance policy and Rs 30,000 free medical insurance cover for those who enroll before January 26. Depending on the performance of the accounts in the first six months, banks will later extend a Rs 5,000 overdraft facility to one account per household.

While Samajwadi Party led-Uttar Pradesh has opened 1.16 crore bank accounts under the scheme, Trinamool Congress-governed West Bengal has opened 49.54 lakh bank accounts. BJP-led Rajasthan and Madhya Pradesh have opened 46.3 lakh and 45.82 lakh accounts, respectively, under the scheme till October 29, 2014. The finance ministry, which has been keeping an eye on the progress of the scheme is hopeful that it will meet the target for account opening this fiscal. The data reveals that of the 6.99 crore accounts opened, 3.69 crore RuPay debit cards have also been issued while 2.15 crore accounts have been seeded with Aadhaar numbers.

However, experts say that for the scheme to be truly successful, banks need to provide doorstep services. “Bankers need to understand that if they want to really do financial inclusion, accounts have to be active… they need to provide doorstep banking along with overdraft facility from day one so that the holder can easily access the services,” said Chetna Vijay Sinha, chairperson, Mann Deshi Bank Organisation that runs a regulated cooperative bank for women.

Friday, October 31, 2014

Get account holders under Jan Dhan to use RuPay card, FinMin tells banks

To get customers opening accounts under the Pradhan Mantri Jan Dhan Yojana to use their RuPay debit cards, the Finance Ministry is believed to have asked banks to take a carrot-and-stick approach.
So, to remain eligible for the ₹1 lakh accident insurance cover that comes with the Basic Savings Bank Deposit Account (BSBDA), the cards may have to be used at least once in 45 days.

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

Ministry officials said that customers have to be advised to operate the cards at a certain time interval, say, once in 45 days, in order to continue to enjoy the accident insurance cover without any charge to them.

Banks were also advised to have an “SMS” alert system for BSBDA beneficiaries so that they use the RuPay card once in 45 days and remain eligible for the accident insurance cover, said a senior official of the Union Bank of India.

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

It has been conceived to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions to participate in electronic payments.

This card is accepted at all ATMs (for cash withdrawal) and at most of the PoS machines (for making cashless payment for purchases) in the country.

A ‘Basic Savings Bank Deposit Account’ or ‘no-frills’ account does not have any minimum balance requirement. The services available for such accountholders include deposit and withdrawal of cash at bank branches as well as ATMs; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments.

While there is no limit to the number of deposits that can be made in a month, accountholders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals; and comes with the facility of ATM card or ATM-cum-debit card.

The Pradhan Mantri Jan Dhan Yojana (PMJDY), which was launched on August 28 by Prime Minister Narendra Modi, is a National Mission for Financial Inclusion. 

Financial inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at affordable cost 

The Yojana seeks to ensure access to financial services — namely, banking/savings and deposit accounts, remittance, credit, insurance and pension — in an affordable manner.
Banks have been set a collective first target of reaching 7.5 crore unbanked families under the PMJDY by January 26, 2015.

Thursday, October 9, 2014

Jan Dhan Yojana: Delay in issuing RuPay cards may block benefits


After the initial euphoria over Jan Dhan Yojana, operational difficulties are casting clouds over the execution of the ambitious financial inclusion scheme. 

The most serious concern for the government is delay in issuing the RuPay cards by banks after opening of the accounts, apart from significant duplication of the accounts. 

“These are the issues which have been observed by us nationally. Proper data on the issue of RuPay cards should also be maintained,’’ N Srinivasa Rao, Director, Ministry of Finance, said at a bankers’ meeting here last week. 

According to the Ministry, 5.29 crore bank accounts were opened as on October 2, 2014 and 1.78 crore RuPay cards have been issued. It had also asked all banks to set up exclusive grievance cells to provide service to the account holders. 

Without the issue of Rupay cards, the assured benefits such as RuPay card offers and personal accident insurance and permanent disability of ₹1 lakh cannot be extended to the accountholders. 

Supply constraints

When contacted, M Anjaneya Prasad, Executive Director, Syndicate Bank, said that a major reason for the delay in issuing RuPay cards was supply constraint.

“As every bank is opening new accounts, there is lot of demand for the cards which have to be issued by the National Payments Corporation of India. The supply needs to be augmented as about 10 crore cards have to be issued by 2015 for the new accounts holders,” he said.

According to senior executive of Canara Bank, there is also need to work out the cost aspects of the cards. As of now, ₹1 is being charged for the card, which is borne by banks. 

The total number of banks issuing RuPay cards is now more than 250 and the card base as on April 30 is over 17 million and is growing at a rate of about 3 million a month. 

“This will go up significantly, thanks to the new scheme,” he said. 

Duplication of accounts

Another issue for banks is duplication of accounts as many no frills accounts were already opened under financial inclusion drive so far. 

Banks are hoping to deal with the issue with seeding of all accounts to one Aadhar number so that all could be linked.

It remains to be seen how the knotty issues are dealt with in the days to come.

Friday, September 12, 2014

Card payment network RuPay sees boost from government banking scheme



A government drive to expand banking services in India is giving a boost to home-grown card payment network RuPay, which expects to quadruple the number of users by March and make debit cards more acceptable in a nation where cash is still king.

Started in 2012 by a company owned by 10 local and foreign banks, RuPay competes with global payment firms Visa Inc and MasterCard Inc for the few customers in Asia's third largest economy able to afford a debit or credit card.

As of July, banks issued just under 435 million payment cards in India, a nation of 1.3 billion people. Most were debit cards.

RuPay's share of daily card transactions, however, remains small compared with the global firms, which are more established, offer both debit and credit cards and are accepted by more retailers. RuPay currently offers only debit cards.

RuPay users account for just 1.5 percent of daily card transactions of almost one million at retailers, said A.P. Hota, chief executive of the National Payments Corp of India (NPCI), which runs RuPay.

Hota told Reuters the payments network was set to grow rapidly from the government's so-called financial inclusion scheme, which aims to ensure the majority of households has a bank account within months.

Under the scheme launched late in August, Indians who open a bank account for the first time automatically get a RuPay card.

Hota said the number of RuPay users has now almost doubled  from 23 million at the end of July.

By March next year, he expects that number to rise to 160 million, with more than 60 percent of the increase coming from the government scheme.

"Jan Dhan itself would provide a big opportunity for the domestic card brand to be a formidable force," said Hota, referring to the financial inclusion scheme, Jan Dhan Yojana, which means People's Wealth Scheme.

"(RuPay Card transactions are) just a drop in the ocean at the moment. But drop by drop we are increasing our size."

NPCI is also trying to lure more customers by charging banks lower fees than Visa and MasterCard, Hota added.

Visa, the world's largest credit and debit card company, declined to give its India market share, but said the country was amongst the world's fastest-growing payments markets.

"We believe Visa is well-positioned competitively," Uttam Nayak, group country manager of India and South Asia, at Visa, said in emailed comments, adding his company welcomed competition.

MasterCard did not reply to Reuters' requests seeking comment.

NPCI's shareholders include India's biggest bank, the State Bank of IndiaBSE 0.93 %, and foreign lenders Citibank and HSBC. The central bank has a nominee on its board.

The organisation plans to launch RuPay cards that will be accepted overseas through a partnership with Discover Financial Services, Hota said, and is also in talks with Japanese card network JCB about a partnership.

RuPay had aimed to issue credit cards by March 2015, but those plans have now been delayed by the government scheme, Hota said. "Rural acceptance of the Jan Dhan cards will be our priority," he added.

Wednesday, September 10, 2014

Improving capacity is key to financial empowerment

A lot has already been said about the Jan Dhan Yojana; by the eloquent prime minister himself and then by advertisers, commentators and other worthies.In the crowd of messages, one called for urgent action. It said, 'Free accidental death insurance of up to Rs 10 lakh on your debit card has expired. Shop NOW to activate cover for the month.' I have no intention of dying to find out how much free insurance I am worth.

However, with the Jan Dhan Yojana fresh on my mind, I pulled out the plastic at the gas station, only to put it back because the two factor authentication required that I step out in the rain to punch my PIN at the handheld device, now irrefutably attached to the cashier's table!

I guess I am now without cover and I wish the new millions getting free insurance with their new debit cards better luck than that.

A lot has already been said about the Jan Dhan Yojana; by the eloquent prime minister himself and then by advertisers, commentators and other worthies. It is phenomenal as far as communication and intent goes. It warms the heart to know that the bullet trains will not bypass the small hapless woman, but that there is a plan to empower her in plastic and reward points.

It is difficult to argue with the potential of financial inclusion to significantly change lives and create long term, sustainable value. And yet, it will be a while before we know if the Yojana triggered or delayed financial inclusion.

Banks successfully opened 1.5 crore accounts on the launch day. However, achievement of numeric targets will not indicate success here as the entire value of the banking relationship is from ongoing use of the accounts. One hopes that low hanging fruits such as benefits transfers will be implemented efficiently by the government and banks will be able to manage BCs who in turn will be able to fulfill customer expectations.

But given the different agencies involved, it will be interesting to see who takes long term responsibility for actions, inactions and decisions made for and on behalf of banks, including potential credit and cost decision made for and on behalf of banks, including potential credit and cost decisions.

On their part, the central bank has been working at a furious pace to change the bank licensing framework to accommodate needs of an economy marked by small value, high frequency transactions.

The idea is that if supply side constraints are removed, old and new banks will compete and collaborate and test new, innovative, technology-driven distribution frameworks that will meet the demand side at a frameworks that will meet the demand side at a fair price, correcting a historical skew.
http://economictimes.indiatimes.com/opinion/comments-analysis/improving-capacity-is-key-to-financial-empowerment/articleshow/42138671.cms
In the crowd of messages, one called for urgent action. It said, 'Free accidental death insurance of up to Rs 10 lakh on your debit card has expired. Shop NOW to activate cover for the month.' I have no intention of dying to find out how much free insurance I am worth.

However, with the Jan Dhan Yojana fresh on my mind, I pulled out the plastic at the gas station, only to put it back because the two factor authentication required that I step out in the rain to punch my PIN at the handh ..

Wednesday, August 13, 2014

RuPay cards to replace Aadhaar in welfare scheme authentication

NEW DELHI: The finance ministry has decided to limit Aadhaar's role in its welfare scheme payments and, instead, use ATM-enables RuPay cards for last-mile authentication to withdraw money.

Rejigging India's existing ATM network to make it Aadhaar (& biometric) ready would be expensive, experts said. There is another reason why some banks want to retain authentication with them — UIDAI wants to charge for its authentication service.

While it will continue to use Aadhaar for opening accounts and to eliminate ghosts and duplicates from beneficiary rolls, the ministry has decided to give RuPay ATM cards with bank accounts being opened under to-be-announced financial inclusion drive, Sampoorn Vittiyea Samaveshan, government officials told ET.

"We do not want that an account holder should be restricted on a particular technology platform. By providing RuPay powered ATM card the account holder can transact on multiple platforms," a senior finance ministry official said on the condition of anonymity. This is a large blow to the Unique Identification Authority of India (UIDAI) which has, till now, regarded authentication services as one of its principal functions.

Government welfare payments were seen as one of the biggest potential revenue streams for Aadhaar. Vijay Madan, director general at UIDAI, did not respond to an ET email about the impacts of this development as of press time. Puneet Chopra, associate director at Lucknow-based financial inclusion think-tank Microsave, said, "Selection of RuPay card means authentication will be PIN based."

Several reports from field have said that online biometric authentication is not working for manual labourers and the old. UIDAI had notified handheld device specifications all business correspondents (BCs) need to follow. This was, however, opposed by BCs using different technologies such as smart card-based biometrics or no biometrics at all.

Abhishek Sinha, the founder of Eko, a mobile based banking provider, had told ET at that time: "Different villagers might be more comfortable authenticating their identity through a card, a phone, a fingerprint or a numeric code. The network should be able to accommodate all those options, and leave room for innovation."

RuPay cards to replace Aadhaar in welfare scheme authentication

With the latest development, Aadhaar will be used to identify bank accounts of beneficiaries, as both bank and government databases will be seeded with the Aadhaar number. However, once the cash flows into the Aadhaar-linked bank account, last-mile authentication when the money is being withdrawn will be done using the authentication systems of either the relevant bank or last-mile service provider such as BCs or a cellphone company.

MS Sriram, visiting faculty at IIM Bangalore's Centre for Public Policy, said it is a good idea to use Aadhaar only for seeding. "Linking bank accounts with Aadhaar number will help the government eliminate ghosts and duplicates from beneficiary lists," he said.

Also, rejigging India's existing ATM network to make it Aadhaar (and biometric) ready would be expensive, experts said. There is another reason why some banks want to retain authentication with them — UIDAI wants to charge for its authentication service.

"Cost of Aadhaar authentication is an issue, even if the cost is kept at just 25 paise per authentication," said Sanjay Kuberkar, founder of Adrenaline Financial Inclusion Advisors. "There is at least one client bank of mine who is considering to use their own biometric authentication method instead of Aadhaar because of the cost implications," he said.

Friday, August 8, 2014

BMB rolls out RuPay debit card


 Bhartiya Mahila Bank (logo).jpg

Bharatiya Mahila Bank (BMB) has launched BMB RuPay debit card with an EMV chip. The card was launched by Usha Ananthasubramanian, Chairperson and Managing Director, BMB, in the presence of AP Hota, Managing Director and CEO, National Payments Corporation of India (NPCI), in Mumbai. EMV chip technology is becoming a global standard for credit card and debit card payments. It is named after its original developers — Europay, Mastercard and VISA.

Bharatiya Mahila Bank (Hindi: भारतीय महिला बैंक) (BMB) is an Indian financial services banking company based in New Delhi, India.Former Indian Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former

Indian Prime Minister Indira Gandhi. Although initially reported as a bank exclusively for women, the bank allows deposits to flow from everyone, but lending will be predominantly for women. India is the third country in the world to have a bank especially for women, after Pakistan and Tanzania.
The bank has been criticized as adopting a segregational approach to gender equality. Uma Shashikant of the The Hindu writes:

Women-only banks are another instance of wanting to treat women ‘differently’. We guise this in many forms, some in garbs of reverence, some as protection, but they are all forms of discrimination that promote gender-based stereotyping. Women-only organisations stem from this eagerness to patronise women in the name of preferential treatment

Tuesday, July 22, 2014

Popularising RuPay Card - State Bank of India Initiative



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

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

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

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

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

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

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

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

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

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

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

International acceptance 


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

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

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

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

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

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

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

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

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

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

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

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

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

Monday, July 14, 2014

National Bank for Agriculture and Rural Development launches RuPay Kisan cards



National Bank for Agriculture and Rural Development (Nabard) today rolled out RuPay Kisan Card and RuPay Debit Card here today.

"This is the first time that RuPay Card, which is in the nature of ATM cum Debit Card, is being issued by any cooperative bank in the state of Haryana," said Nabard Chief General Manager (Haryana) D V Deshpande.

He said the issue of RuPay cards by cooperative banks will enable them to improve their customer service and bring it on par with any other bank to farmers and other customers.

Meanwhile, Haryana Chief Minister Bhupinder Singh Hooda asked Nabard to increase the refinance given to cooperative banks from 50 per cent to 75 per cent.

Speaking on the occasion of its 33rd Foundation Day here today, Hooda said reducing groundwater level and shrinkage of fertile land posed big challenges which could be met by promoting piped and drip irrigation, constructing green houses, promoting dairy and techniques of vertical farming.
Hooda asked Nabard to work at the micro level for the expansion of these techniques and said it should provide finance for setting up water bodies in the state.

He said while Kisan Clubs have been set up in all sub-divisions of the state, there is a need to set up Kisan Clubs in all villages.

"Nabard should extend a helping hand in doing so. These clubs would act as a bridge between NGOs, self-help groups, farmer groups," he added.

Monday, July 7, 2014

Govt Asks Banks To Issue Rupay Cards, Mastercard-Visa Feeling The Heat

In the month of May, President Pranab Mukherjee inaugurated RuPay, which is India’s first national payment gateway. Created by National Payments Corporation of India, RuPay has several advantages compared to private payment gateways such as low processing fees, data security and more.

While reporting this exciting news, to be very honest, we were quite skeptical regarding it’s adaptability and wide scale usage. Considering that it is a government owned and supported payment gateway, we assumed that it will take some time to spread and adapt.
But we were very wrong!

In a latest development, government is actively encouraging the usage of RuPay across everywhere, as they want it’s adoption to grow quickly. Such is the intensity of it’s promotion that for the first time in their 30 years of existence, global payment gateway biggies such as MasterCard and Visa are facing the heat.

As per reports coming in, Gurdial Singh Sandhu, secretary at the finance ministry’s department of financial services has asked all nationalized banks to issue debit cards which are RuPay enabled!

Rupay Mastercard visa

Normally, only one debit card is issued per account, but this time, bank officials have been categorically asked to tweak their rules, and issue one more RuPay enabled debit card which can use this new payment gateway.

Not only this, merchant establishments and traders have been specifically requested and encouraged to install sale terminals especially for RuPay enabled debit cards so that a wide scale adaption of India’s new payment gateway is made possible.

Industry experts are fearing that such official diktat from the government to nationalized banks can defer some customers to private banks as they are still using MasterCard or Visa payment gateways.
But AP Hota, MD & CEO of National Payments Corporation of India has rubbished such
apprehensions as he said, “Such fears are unfounded. RuPay is a fully functional card payment system. We are also launching Platinum cards for HNI customers.”

Nationalized banks have now been given 6 months to issue a new RuPay enabled debit card to all it’s existing customers, inform and educate all bank employees in thousands of branches all over India and send an updated report to the government regarding the adaptation and usage.

Just for information, around 2 crore RuPay enabled debit cards have been issued so far.
Last year, Indians spend Rs 80,000 crore using debit cards, and its usage is increasing at an impressive rate of 35% every year. It seems that Indian Government has donned the cap of a startup this time, and is doing everything possible to increase RuPay’s usage. If the same momentum is maintained for another year or so, RuPay can easily capture more than 80% of the market in India, and this is a bad news for private payment gateways.

What is your opinion on the increased effort of Indian government to spread the usage of RuPay? Will it backfire or will it work?

Friday, June 20, 2014

Haryana Co-Op banks to provide credit cards to farmers



For the first time, now the Cooperative Banks in Haryana would also provide credit cards to farmers.

Chief Minister Bhupinder Singh Hooda would launch a new scheme known as 'Rupay KCC Card' on July 12, on the occasion of foundation day of National Bank for Agriculture and Rural Development (NABARD).

This state-wide scheme will be launched from Cooperative Bank of Ambala in Ambala by issuing such cards to five farmers.

On the same day, Hooda would also introduce a new scheme 'Dairy Area Development Scheme' for dairy owners.

It aims at developing dairy through ultramodern scientific methods so as to make dairy business more profitable.

The 'Rupay KCC Card;' would be similar to ATM card which farmers can use at any ATM, an official release said here.

The banks would also provide finance to dairy owners adopting ultramodern scientific methods.

In a meeting held here today, the Chief Minister discussed both the schemes with Chief General Manager, NABARD, D V Deshpande.

Hooda said the state government has taken a number of decisions for the welfare of farmers and dairy owners.

These decisions have benefitted farmers and dairy owners and enhanced their economic status.

He said that the state government would continue to take such decisions.

Highlighting 'Rupay KCC Card' scheme and 'Dairy Area Development Scheme', Deshpande said dairies with up to 10 cattle would be provided funds under the 'Dairy Area Development Scheme'.

He said the 'Rupay KCC Card' scheme is being introduced by Cooperative Banks in the State for the first time.

Deshpande informed the Chief Minister that today NABARD released Rs 20 crore to Irrigation Department for strengthening the irrigation canals in the State and has sent a new project costing Rs 200 crore for approval to headquarters.

Hooda also asked Deshpande to get a project approved for four water bodies to be set up in the State to minimise threat of flood in various districts.

Deshpande said progressive farmers and bankers with commendable performance would also be honoured in the function to be held on July 12.

Tuesday, May 27, 2014

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




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

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

Key Features:

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

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

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

Why Rupay Poses a threat to Visa & MasterCard?

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

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

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

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

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

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

Wednesday, May 7, 2014

President Pranab Mukhrerjee to dedicate indigenous payment card RuPay to nation


 
RuPay, an indigenous payment card accepted at most retail and e-commerce platforms and all automated teller machines (ATMs) across the country, will be dedicated to the nation Thursday. 


RuPay, an indigenous payment card accepted at most retail and e-commerce platforms and all automated teller machines (ATMs) across the country, will be dedicated to the nation Thursday.
President Pranab Mukherjee is scheduled to dedicate the card payment network to the nation at a function at Rashtrapati Bhavan.

"RuPay" is the coinage of two terms Rupee and Payment. It has been developed by National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry.

According to an official statement, the RuPay card, launched March 26, 2012, is accepted at all ATMs (over 1,60,000), 95 percent of point-of-sale (PoS) terminals (over 9,45,000) and most of the e-commerce merchants (over 10,000) across the country.

A variant of the card called "Kisan Card" is now being issued by all the public sector banks in addition to the mainstream debit cards issued by 43 banks.

"A variant of Pre-paid RuPay card would shortly be launched by IRCTC," it said.
More than 150 cooperative banks and Regional Rural Banks (RRBs) in the country have issued the RuPay ATM card. The total number of cards issued as on date is 17 Million and is growing at a rate of about three million per month.

"This card symbolizes the capabilities of banking industry in India to build a card payment network so that dependency on international card scheme is minimised," the statement said.