NEW DELHI: President Pranab Mukherjee on Thursday launched India’s indigenous card payment network called RuPay taking on the global players like Visa and MasterCard.
This new payment network has been developed by the 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.
NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.
RuPay is the coinage of two terms Rupee and Payment. RuPay will facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa in India.
RuPay cards are accepted at all ATMs, more than 90 per cent of ‘Point of Sale’ (POS) terminals and more than 10,000 e-commerce merchants across India.
“Dedication of RuPay to the nation is symbolic of the maturity of the payment system development in India,” Mukherjee said after formally launching the card at a function at Rashtrapati Bhavan.
Mukherjee said card—based payment transactions in India is set to grow rapidly in the coming years as the economy matures and internet penetration increases.
“An indigenous system like RuPay will, hopefully, not only reduce the dependence on cash and cheque modes of settlement but will also make it easier to offer products based on specific requirements of diverse user sets within the country,” the president said.
With this launch India has now ranked among few countries in the world to have such a network built domestically to meet the card-based payment system within the country.
RuPay cards are accepted at all ATMs, more than 90 per cent of ‘Point of Sale’ (POS) terminals and more than 10,000 e-commerce merchants across the country.
RuPay will provide flexibility to card issuing banks to issue special purpose cards like Kisan Cards, Milk Procurement Cards, Grain Procurement Cards and Financial Inclusion Cards.
More than 150 cooperative banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM cards. The total number of cards issued as on date is 17 Million and is growing at a rate of about three million per month.