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

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.

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

Monday, July 28, 2014

Himachal Coop Bank launches RuPay Kisan Credit Debit Card

RuPay Credit Debit Card Launched

Shimla: To enable easy credit and debit facilities for the farming community, Himachal Pradesh State Cooperative Bank (HPSCB) today launched the RuPay Kisan Credit cum Debit card.
Bank authorities claimed that HPSCB had become the first cooperative bank in the country to introduce the service for its largely rural customers.

RuPay Credit Debit Card Launched

Launched by chief minister Virbhadra Singh, on the occasion he said, “HPSCB having kept pace with the changing times in banking services like introducing core banking solutions and now launching of RuPay credit debit card would go a long way in providing efficient services to farmers and other customers.”

Chairman HPSCB Harsh Mahajan informed that the Bank through its more than 207 online branches and extension counters was extending prompt and uninterrupted services, particularly to the farming and horticulturalist communities.

Being one of the first cooperative banks in the country to introduce ATM services, the management plans to open four new branches at Golthai in Bilaspur, Gattadhar in Sirmaur, Rajnagar in Chamba and Mandal in Shimla soon.

Besides licenses for starting nine extension counters at Kudu in Shimla, Nanawan and Kothipura in Bilaspur, Bir Road Ahju and Ropri in Mandi, at Obri and Sarol in Chamba, Kamlanagar and Matiana in Shimla have also been granted by Reserve Bank of India, said Mahajan.

Talking about the RuPay credit-debit card, Amitabh Awasthi, managing director HPSCB said that it would facilitate farmers to use their own money or the money loaned from the bank with ease for undertaking seamless transactions for buying agricultural inputs, such as fertilizers, pesticides or mechanized tools such as spray pumps, when required.

Earlier, Harsh Mahajan presented a cheque of Rs. 21,65,760 as dividend for the year 2012-13 and contributed a Rs 51 lakh cheque towards the Chief Ministers Relief Fund to Virbhadra Singh.

Wednesday, May 21, 2014

Tap-to-pay Eftpos transactions on the way

Tap-to-pay Eftpos transactions on the way

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

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

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

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

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

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

Eftpos ‘cheapest payment to take’

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

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

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

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

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

Monday, May 12, 2014

RuPay will reduce dependence on cash transactions: Pranab Mukherjee

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India, volume of card transactions will be significant in the years ahead.

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India, volume of card transactions will be significant in the years ahead. 

NEW DELHI: President Pranab Mukherjee said 'RuPay'-- India's payment gateway -- will reduce dependence on cash and help in streamlining the card payment systems in the country.

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India volume of card transactions will be significant in the years ahead.

RuPay will not only reduce dependence on cash, but will offer users diverse set of payment option within the country, he said, adding India is one of the few countries in the world to meet the card payment system needs domestically.

A variant of pre-paid RuPay card would shortly be launched by IRCTC, which will help in booking railway tickets. RuPay is developed by National Payments Corporation of India (NPCI) and would be the seventh such payment gateway in the world.

NPCI Chairman Balachandran M said the NPCI board plans to take RuPay card overseas and is already in talks with Discover Financial Services in the US and JDC in Japan for a collaboration.

RuPay works on three channels - ATMs, Point of Sales (POS) and online sales. Speaking on the occasion, Financial Services Secretary G S Sandhu said RuPay would be available at a cost which is much less than the cost of international cards.

The public sector banks have already installed 25,331 RuPay cards enabled ATMS and 9,000 more ATMs would be installed in the current fiscal, Sandhu said. The RuPay card is accepted at all ATMs (1.6 lakh plus), 95 per cent of PoS terminals (9.45 lakh plus) and most of the eCom merchants (about 10,000) in the country.

Since the transaction processing will happen domestically, it is expected to lead to lower cost of clearing and settlement. Banks Will pay fees in Indian rupees instead of foreign currency.

A variant of the card called 'Kisan Card' is now being issued by all the public sector banks in addition to the mainstream debit card which has been issued by 43 banks. Further, a separate card for payment of milk purchases has also been launched.

The total number of banks issuing RuPay cards is now more than 250 and the card base as on April was at 20 million plus. More than 150 cooperative banks and the regional rural banks (RRBs) have also issued RuPay ATM card.

RuPay, a new card payment scheme, is the coinage of two terms Rupee and Payment. RuPay card offers personal accident insurance and permanent disability cover of Rs one lakh to the cardholder, subject to the card being kept in activated condition.

Such a feature is not present on any international card scheme, a statement said.

Monday, March 3, 2014

DK becomes first district in State to provide RuPay cards

Dakshina Kannada district became the second district in the country after Raigad in Maharashtra, to introduce the facility of debit cards to farmers and customers of the Central Co-operative Banks. 

NABARD Chief General Manager B R Chinthala launches RuPay Kisan Card at  a programme held at SCDCC Bank in Mangalore on Tuesday. DH Photo

With the South Canara District Central Co-operative Bank (SCDCC) introducing RuPay Kisan Card to the farmers, a large number of farmers with their accounts in Central Co-operative Banks in the district, who were deprived of electronic payment system facility, will now get an opportunity to use debit cards like any other customers of commercial banks. The SCDCC management, introduced RuPay Kisan Card for farmers and RuPay Debit Card for its other customers, with the assistance from NABARD, at a formal programme at the bank’s head office in the city on Tuesday.

Speaking on the occasion, SCDCC Chairman M N Rajendra Kumar said that the SCDCC was the first co-operative bank in the State to introduce the facility, wherein nearly 90,000 farmers with Kisan Credit Card will avail the facility of debit card. Micro ATMs ill be placed in all the 166 primary co-operative societies and in their branches, and in all the branches of the SCDCC Bank, enabling the RuPay Kisan Card holding farmers and RuPay Debit Card holding customers to swipe and withdraw or deposit money in their account.
Farmers who have availed Kisan Credit loans can open an account with the SCDCC Bank through Primary Co-operative Societies and make use of the debit card facility.

Aadhaar number can be linked to the same account, for availing the government subsidy facilities. The account holders can use the debit card in any of the ATM machines with RuPay symbol. The SCDCC Bank has plans to introduce internet banking and inter-bank mobile payment system in the days to come, Rajendra Kumar said.

NABARD extends support

Launching the facility, NABARD Chief General Manager B R Chinthala said that the Central government has directed the NABARD to introduce core banking solutions or electronic payment systems in all the Central Co-operative Banks at the earliest.

Though debit cards were first introduced in a co-operative bank in Raigad in Maharashtra, Dakshina Kannada is the first district to introduce the facility in a full-fledged manner.

“If such facilities are not offered to customers, there is a danger of CCB customers, migrating to commercial banks. Therefore, the NABARD intends to introduce the facility in all the CCBs of Karnataka within six months, following the footprints of Dakshina Kannada. The NABARD has extended a financial support of Rs 1.75 crore to the SCDCC Bank for introducing debit card facility and we are ready to offer the required amount to any of the co-operative banks in the State,” he said.

Further, he said that the RuPay system was more advantageous for the banks in cost cutting, as the banks normally shell out Rs six per transaction to the US based companies, in Master and Visa cards.

The RuPay gateway system is designed by the Government of India, and the banks need to shell only 40 paise per transaction. The government has entrusted the NABARD, the task of ensuring that all co-operative banks are brought under RuPay.

“The RuPay cards are not just restricted to transact business from ATMs of co-operative banks or Point-of-Sale (POS) machines, but also enable the transaction of commercial establishments anywhere.

RuPay Kisan Cards
and RuPay Debit Cards were symbolically distributed to five farmers and five customers, on the occasion.