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Why is RuPay a finer Conduit?

In order to bring a healthy whirl to the former system of payments, the Government of India, setup the National Payments Corporation of India (NPCI). The NCPI gave birth to a new card scheme called RuPay to reduce the cost and at the same time to promote cashless payments.

Hard cash or bank notes have been abandoned with lately with the coming up of ‘Soft Currency’ in the market. Reasons for this switch have been numerous but what could be more interesting is how the money of the country can drain by its citizens switching to cards like MasterCard, Visa or Amex.

To understand how using these plastic cards could be a trouble we have to understand how their system actually works. Suppose Mr. A having an account in a bank named XYZ, is trying to pay Mr. B who has an account in a bank named PQR. If Mr. A uses cards like Mastercard or visa, these are international payment gateways working as a mediator between the two banks. Since the transactions are international, they simply have an account with any bank across the world hence they, along with forwarding the amount, take their overly-priced commission.

Consequently, you pay the brokerage to such gateways and cause heavy damage to the economy of the country in the longer run. Also, when a bank in public or private sector issues a card, it has to pay additional charges along with transaction charges, further draining the funds of the country.

In order to bring a healthy whirl, the government of India, to reduce the cost and at the same time to promote cashless payments, setup National Payments Corporation of India (NPCI).

The corporation then gave birth to a new card system and named it the RuPay card. With no doubts the government has succeeded in setting up a domestic card scheme which would not only compete with the others in the market but also other merits.

RuPay is a Indian company and our own domestic payment gateway system. Since there is no international entity involved and the transaction is also within India this results in faster transaction along with far lesser processing charges. That’s a win-win for both the parties including the bank. The most important factor is that the client’s data would not be stored with any international company.

RuPay card can be utilized almost everywhere in India and is accepted in e-commerce too. RuPay cards were issued to all Jandhan account holders which was in itself a bold step taken by Indian government.

Since the tie up has been done with Discover and Dinersclub it can be used internationally too but only in those places where Discover and Dinersclub cards are accepted. To promote Rupay cards we get many lucrative offers like cash back etc if we fill fuel, pay bill, book tickets etc. One can approach any bank, submit simple KYC information, open an easy savings account and obtain a RuPay Debit Card.

Further existing visa or master card can be returned and the bank may be asked to issue a Rupay card. The best still is to open a Jandhan account. Henceforth, a recourse to endorsing RuPay further as a card system can be endorsed.

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