WHAT IS Rupay Card?
MUMBAI: RuPay cardholders will have dual insurance covers, with the government roping in the Life Insurance Corporation of India a day before unveiling its financial inclusion programme Pradhan Mantri Jan DhanYojana.LIC, the country’s largest financial institution, will offer a life cover of Rs 30,000 while HDFC Ergo will provide a Rs 1-lakh personal accident cover to RuPay cardholders. (The Economic Times)
Recent developments saw Government passing on instructions to state owned banks to issue RuPay debit cards to their customers. This looks like a clear indication to promote these cards. But, what exactly is this RuPay card and how does it function? Let’s look into it now. What is it?RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version of credit/debit card. It is very similar to international cards such as Visa/Master.
Who initiated it?
National Payments Corporation of India (NPCI) initiated the launch of RuPay card in India. It was done with the intention of integration of payment systems in the country. It has also tied up with Discover Financial Services firm for promoting this.
How will it work?
RuPay debit cards are similar to any other debit cards that you might hold now. You can access them in the 1.45 lakh ATMs and 8.75 lakh POS terminals across the country. It will also be accepted on 10,000 e-commerce websites. All major public sector banks, including SBI, have started issuing these cards to all their customers. The card also comes with a high end technology chip named EMV (Europay, Master Card and Visa) especially for high end transactions. It also has an embedded micro processor circuit with information about the card holder.
What are the Benefits of RuPaycard? Lower transaction cost – International transactions lead to higher transaction costs. Such costs can be reduced by using RuPay card since processing will be done within the country. Also, transactions will be faster.
Sms alerts – Users will get alerts for every transaction made through this card.
Reduced processing fees – Processing fees for RuPay card compared with regular debit/credit cards will be considerably lower.