Indigenous payment infrastructure

Discussion in 'Economy & Infrastructure' started by nitesh, Mar 27, 2012.

  1. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Payment gateway Rupay launched - Money Matters - livemint.com
    National Payments Corp. of India Ltd (NPCI), jointly owned by banks, is the nodal agency to manage and promote RuPay

    Mumbai: India on Monday launched an indigenous debit card payment network called RuPay to compete with multinational Visa Inc. and Mastercard Inc. and help banks reduce cost of issuing a debit card. It will also help in extending payment network in rural areas.

    The card system, similar to China UnionPay network, was first envisaged by the banking regulator in 2005.

    Five banks—State Bank of India, Bank of India, Union Bank of India, Bank of Baroda and Axis Bank Ltd—have been informally running this for months.

    National Payments Corp. of India Ltd (NPCI), jointly owned by banks, is the nodal agency to manage and promote RuPay. NPCI manages the electronic payments in the country

    A.P. Hota, managing director and CEO of NPCI, said 200,000 cards with the RuPay brand name have already been issued and the target is to have 10 million debit cards under the brand by March 2013.

    He expects this to be used as a system for credit cards by March 2015. He also expects all public sector banks to join the system by the end of calender year 2012.

    “Foreign card payment systems charge $50,000 as joining fees, but we will charge nothing. Since we are using indigenous technology and the transaction will be processed domestically, banks’ cost will come down by 40% compared with international schemes,” Hota said.

    NPCI will charge 10 to 15 basis points (bps) of the transaction value as fees per transaction, almost half of what multinational payment companies charge, Hota said. One bps is 0.01%. “We are a not-for-profit company and we will ensure that these cards are issued by even the smaller urban cooperative banks and regional rural banks, which were so far kept out of the system,” Hota said.

    Indian banks will also save on foreign currency because the fees to international payment companies that were so far paid in dollars will now be paid in rupees, Hota said.

    Reserve Bank of India (RBI) executive director G. Padmanabhan said the central bank will not endorse banks to choose the RuPay network. “Banks can choose what they want, but if the costs are so low, then obviously they will save a lot,” he said.

    India has around 260 million debit cards in use. Hota expects 50% of all debit cards to bear the RuPay name in the next three years. Consumers can use the RuPay based debit cards on the Internet from September.

    [email protected]
     
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  3. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    This has to be aggressively pursued, I suggest along with this scheme, we should think of discontinuing of 500 and 1000 notes, keep only 20, 50 and 100 notes active, this will push people towards electronic transactions.

    Multiple hits with one stone :D
     
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  4. Sunder singh

    Sunder singh Regular Member

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    FROM NAINITAL NOW IN CHENNAI
    i want have one
     
  5. LurkerBaba

    LurkerBaba Staff Administrator

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    RBI should have enforced usage of RuPay. We shouldn't be overtly dependant on Mastercard/Visas's switching systems for monetary transactions
     
  6. Adux

    Adux Senior Member Senior Member

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    We should not be a country which has to enforce anything. If Rupay has the reach, network, reliability and affordiability with respect to international players, then our people will only choose Rupay.

    Also, how will this work when Rupay card holder travels abroad?
     
  7. addiction

    addiction Regular Member

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    Can anyone throw some light on this statement?
     
  8. SADAKHUSH

    SADAKHUSH Senior Member Senior Member

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    A positive development which will save us foreign exchange and as well help us develop indigenous service industry which can be exported to neighbouring countries as well.
     
  9. KS

    KS Bye bye DFI Veteran Member

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    irrelevant
    You dont call it "forced"...you call it a gentle "nudge" to the people...;)

    When the major banks automatically start issuing ATM cards in RuPay rather than Mastercard or VISA who will actually care for it ?
     
  10. Mr.Ryu

    Mr.Ryu Regular Member

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    Thats good after thy freeze anonymous account we should teach them a lesson :p

    INDIA is one of the top market they had and in coming years will be
     
  11. Adux

    Adux Senior Member Senior Member

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    Sorry I am a free capital market man and personal freedom advocate.
     
  12. LurkerBaba

    LurkerBaba Staff Administrator

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    RuPay: Your role to play - Moneylife Personal Finance site and magazine
     
  13. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Screw Rupay & these ideas. Tell RBI to first fix the inane laws regarding Paypal.

    Dumb 500$ transaction restriction along with bunch of creepy rules are troubling everyone for more than year now.
     
    Last edited: Apr 4, 2012
  14. Virendra

    Virendra Moderator Moderator

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    You guys are doing transactions above 500$ each ? :shocked: ahaaaan ... ;)
     
  15. JAISWAL

    JAISWAL Senior Member Senior Member

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    President to dedicate indigenous card payment network 'RuPay'


    NEW DELHI: President Pranab Mukherjee will dedicate India's own card payment network 'RuPay' to the nation here on Thursday.

    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, an official statement said.

    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

    [​IMG]
    President Pranab Mukherjee will dedicate India's own card payment network 'RuPay' to the nation here on Thursday.

    A variant of pre-paid RuPay card would shortly be launched by IRCTC. More than 150 cooperative banks and the regional rural banks (RRBs) have also issued RuPay ATM card.

    The total number of cards issued as on date is 17 million and is growing at a rate of about 3 million per month, the statement added.

    RuPay, a new card payment scheme, is the coinage of two terms Rupee and Payment.

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

    'RuPay' is developed by National Payments Corporation of India (NPCI) - a 'not-for-profit' company envisioned by the Reserve Bank and created by the banking industry.

    Source
     
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  16. Eastman

    Eastman Regular Member

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    Bye Bye DFI
    Whats new in that? IMO Ru-Pay is already in service for a while :truestory:
     
  17. Eastman

    Eastman Regular Member

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    Bye Bye DFI
    ^^ I want one :nod:
     
  18. LurkerBaba

    LurkerBaba Staff Administrator

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    I'm surprised UPI (Unified Payments Interface) is not being discussed.

    In a nutshell -
    • It can potentially disrupt how transactions are done. We can finally break free from Visa/Mastercard duopoly.
    • It has extremely low charges (rs 0.5 per transaction). Visa/Mastercard charge ~2% per transaction. Good for both sellers and customers
    • Its very well designed. Similar to IMPS minus the painful bits. This article explains it well https://razorpay.com/upi/
     
  19. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Highly optimistic assessment. Visa/Master cannot be compared with UPI. If anything, UPI might replace wallets - that too over a long long period of time.
     

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