RuPay-a milestone in e-commerce

National Payment Corporation of India (NCPI) promoted by Reserve Bank of India and some other member banks, which aim is to operate for the benefit of all the member banks and their customers, has launched RuPay, a new card payment scheme.

The RuPay card is introduced by NPCI in order to tap into the tremendous growth opportunity of card payment system and use the same as an alternative to move the consumers away from cash. India which is aiming to be one of the top three economies in the world must have its card payment system firmly in its control where the major banks in the country can have a say in its governance. Customized products and service offerings for local consumers can best be achieved by a domestic card payment scheme.

Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction and banks will have to pay almost 40 percent lower fees to RuPay scheme compared to the international cards like VISA and MASTER cards.

The objectives to be fulfilled through RuPay card are:

1. Reduce overall transaction cost for the banks in India by introducing competition to international card schemes.
2. Develop products appropriate for the country particularly for financial inclusion.
3. Provide card payment service option to many banks, who are currently not eligible for card issuance under the eligibility criteria of international card schemes.
4. Build environment whereby payment information of the country remains within the country
5. Shift Personal Consumption Expenditure (PCE) from cash to electronic payments in a growing economy with a population of 1.2 billion
   

RuPay scheme will be primarily for debit and pre-paid cards. In the Product Roadmap of RuPay, credit card offering appears in March 2015 by which time it is expected that RuPay would have a market share of about 50 per cent.

“RuPay”, the word itself has a sense of nationality in it. “RuPay” is the coinage of two terms Rupee and Payment. The RuPay Visual Identity is a modern and dynamic unit. The orange and green arrows indicate a nation on the move and a service that matches its pace. The color blue stands for the feeling of tranquility which is the people must get while owning a card of the brand ‘RuPay’. The bold and unique typeface grants solidity to the whole unit and symbolizes a stable entity.

Source:Wikipedia,NPCI

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