Debit cards based on RuPay platform launched

State Bank of India, Bank of Baroda, Bank of India, and Union Bank of India on Monday formally launched debit cards based on the indigenously developed RuPay payment platform.

The RuPay platform has been developed by the National Payments Corporation of India as a rival to global payment product companies such as MasterCard and Visa.

The RuPay branded debit cards will be accepted at all 91,000 ATMs and over six lakh point of sale (POS) terminals in the country. In due course, these cards would be accepted on Internet and also at ATMs/POS terminals abroad, said a NPCI statement.

NPCI plans to partner banks to introduce RuPay-based credit cards by March 2015.

“Several banks are in the process of testing and certification and we expect all major banks to be a part of the RuPay network in six months time.

“Smaller banks which were not in a position to join the card payment system due to high cost of initial participation fee and quarterly minimum processing fee would henceforth be able to participate in RuPay because there are no such fees under RuPay,” said Mr A. P. Hota, MD and CEO, NPCI.

Since the transaction processing will happen domestically through NPCI's retail payments and settlement platform, it would lead to lower cost of clearing and settlement for each transaction.

Banks will have to pay almost 40 per cent lower fees to the RuPay scheme as compared to the international schemes. Besides, banks will pay only in rupees instead of foreign currency.

kram@thehindu.co.in