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President Dedicates 'RuPAY' to the Nation
May 09, 2014

The President of India, Pranab Mukherjee dedicated RuPay, India’s own card payment network to the nation on May 8.

Reserve Bank of India envisioned the need for such an indigenously managed service in 2005 and for entrusting this task to the National Payments Corporation of India soon after its operationalization in 2010. It usually takes five to seven years to build a fully functional card payment network, but the NPCI could make the RuPay service operational by April 2013.

The creativity lies in developing products meeting the special needs of the customers by the issuing banks. For a large country like India with a rapidly growing economy, the volume of payment transactions, especially those settled through cards, will be significant in the years ahead. Transactions which are mostly settled today either by way of cash or cheque will progressively make way for card based payment transactions as the economy matures and internet penetration increases. An indigenous system like RuPay will not only reduce the dependence on cash and cheque modes of settlement but will also make it easier to offer products based on specific requirements of diverse user sets within the country.

17 million cards issued so far is only a fraction of the potential. Launch of milk procurement pre-paid card by milk procurement agencies or grain procurement agencies in Punjab are other such variants of the card payment mechanism which only a card payment system developed within the country can appreciate and implement faster. Dedication of RuPay to the nation is symbolic of the maturity of the payment system development in India and contribution of the National Payments Corporation of India to nation building.

The RuPay card is accepted at all the ATMs (1,60,000+), 95% of PoS terminals (9,45,000+) and most of the eCom merchants (10,000+) in the country. A variant of the card called Kisan Card is now being issued by all the Public Sector banks in addition to the mainstream debit card which has been issued by 43 banks. A variant of Pre-paid RuPay card would shortly be launched by IRCTC. More than 150 Cooperative banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM card. The total number of cards issued as on date is 17 million and is growing at a rate of about 3 million per month. This card symbolizes the capabilities of banking industry in India to build a card payment network so that dependency on international card scheme is minimized.

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