RuPay is a financial service and payment system launched by the National Payment Corporation of India (NPCI) on March 26 2012. It facilitates electronic payment at all banks in India and financial institutions. National Payment Corporation of India maintain ties with Discover Financial, JCB to enable the RuPay card scheme to gain international acceptance. After countries like Singapore, Bhutan, Maldives, Saudi Arabia, United Arab Emirates, Bahrain, Myanmar, and South Korea, on April 2, 2022, Nepal became the fourth country to operationalize RuPay.
It was launched by Prime Minister Narendra Modi and his counterpart Sher Bahadur Deuba after long talks, including cooperation in trade, investment and energy. After the launch, Prime Minister Modi said, “Introduction of RuPay card in Nepal will add a new chapter to our financial connectivity.”
What is RuPay?
As of November 2020, around 603.6 RuPay cards have been issued by nearly 1,158 banks. The NPCI’s native card payment network was by The Reserve Bank of India. It is a financial service platform launched back in 2012 and across the nation in 2014. The fusion between ‘rupee’ and ‘payment’ inspired its name.
It was launched with the purpose to make India cashless, which requires financial inclusion and the new card did precisely that with the Pradhan Mantri Jan Dhan Yojana. Under this scheme, 258 million RuPay cards were distributed in 2020 alone. From 15 per cent to 60 per cent, the market has accelerated for RuPay.
With no domestic payment network, the bank was forced to pay high charges to multinationals like Mastercard and Visa for the association. With the idea of creating a domestic network, it constructed an affordable and secure payment network.
With the bank on a multinational company like Mastercard and Visa, the way for the indigenous payment gateway is easy to capture the debit card market of India. According to Finance Minister Nirmala Sitharaman, “RuPay card will have to be the only card you promote. Whoever needs a card, RuPay will be the only card you would promote, and I would not think it is necessary today in India when RuPay is becoming Global for Indians to be given any other card first than RuPay itself.”
Due to the card being domestic and all the transactions within the country, the tax rates are low, leading to lower cost and affordability. It can also provide customized products, and one of the critical features is protecting consumers’ data. Since the firm is an Indian firm, the data will reside in India. There are untapped consumers segments in rural areas that do not have access to the bank. With the correct pricing, it is one of the most affordable and economical. It offers complete interoperability between various payments channels and products. Offers on the debit card include concierge services, fuel surcharge waiver, IRCTC cashback, Utility bill payment cashback, domestic lounge access and many more.
Key features of the card are:-
- No separate registration required
- User friendly
- Enhanced User Interface
- Faster transaction processing
- Highly secure
RuPay in Nepal
The launch of RuPay in Nepal opens new horizons for corporations in financial connectivity. Further, the movie is expected to facilitate bilateral tourist flows as well as further strengthen the people-to-people link. The Nepal Bank (NSBL), a subsidiary of Nepal’s most prominent international bank, worked the initiative to support the country from the central bank. It will also renew the path of financial convenience and empowerment with the use of technology and innovation. According to the Nepalese authority, it will open the path for RuPay cardholders but also strengthen Nepal’s financial ecosystem capabilities.
With the launch of RuPay, both the countries also signed the pact for the renewal of an MoU for the supply of petroleum products for a period of five tears between Indian Oil Corporation Ltd (IOC) and Nepal Oil Corporation (NOC). This pact was signed on March 27, 2017, as the previous agreement was supposed to expire on March 31, 2022. This contract forms an umbrella contract enabling the supply of petroleum to NOC via the Motihari-Amlekgunj pipeline.
Edited by Prakriti Arora