RuPay Debit Cards

RuPay cards have emerged as a strong contender to VISA and MasterCard in India. The Board for Payment and Settlement Systems in India was established in 2005 after the RBI realized the need to bring together, all retail payment systems under one channel and this gradually led to the formation of NPCI. The National Payment Corporation of India promoted by the Reserve Bank of India introduced RuPay in 2012. RuPay cards have since then seen a colossal growth and is becoming a favorite among the Indians. Read on to know more about the Swadeshi competition of VISA and MasterCard.

Why choose a RuPay Debit Card?

The transaction cost is very less when compared to the other debit card variants in the market – Visa and MasterCard because the whole transaction process takes place within India.
RuPay cards are easily available to people with limited or no banking accessibility and RuPay cards are available in rural areas also.
NPCI is also planning to offer EMV cards, contactless credit and debit cards under the RuPay label.
With IRCTC RuPay prepaid debit cards, customers can book train tickets without any hassles.
High transaction and withdrawal limit that comes with RuPay debit cards will offer immense flexibility to the customers.

Benefits of RuPay Debit Card

A brainchild of RBI, RuPay is exclusively crafted to meet the needs and requirements of Indian customers. Here are some of the benefits that RuPay customers stand to get.

- Security of Information Related to Indians

Customer data and transaction details pertaining to RuPay card transactions will not be passed outside India.

- Safe Transactions

With SMS alerts and notifications that are sent to the customer’s phone number after every transaction, RuPay cardholders can be ensured of a secure transaction.

- Designed for India

RuPay cards have been customized keeping in mind the product and service requirements of Indians.

- Greater Reach in Rural Areas

When it comes to the RuPay cards transactions, all the processing happens within the country. This results in lower cost of settlement and clearing for the transactions made using RuPay debit card. Banks will profit immensely from this as costs for transaction processing becomes affordable.

- Greater Reach in Rural Areas

Consumers in rural areas can easily apply and get a RuPay card.

- Payment Solutions across Platforms

RuPay debit card is designed to provide complete interoperability between payment channels including mobile technology, ATMs, cheques etc.

Comparison of RuPay with Visa, AmEx, and MasterCard

RuPay is a card scheme that was developed by the National Payments Corporation of India (NPCI). Since it is a domestic card scheme, there are some areas where RuPay differs from its peers such as MasterCard, Visa, and AmEx. The following are a few points of distinction between RuPay and other international card schemes.

Processing fees

Transactions carried out through a RuPay card are approximately 23% less expensive than those done by Visa, MasterCard, and AmEx cards. The processing for Visa, MasterCard, and AmEx transactions takes place overseas which is why the fees charged are relatively higher.

Fee structure

The fee structure for RuPay differs from that of its peers since banks need not make any payment to be part of the network. Visa, MasterCard, and AmEx require banks to pay an entry fee as well as a quarterly fee to be part of their network.

International usage

Since RuPay is a venture of the NPCI, the debit cards can only be used within the country. Visa, MasterCard, and AmEx cards can be used internationally.

Processing time

The time taken to process transactions carried out through RuPay cards are comparatively faster since it is essentially applicable only for domestic transactions. Transactions carried out through Visa, MasterCard, and AmEx take slightly longer since they are processed on an international scale.

Security of data

Transactions carried out through a RuPay card tend to be more secure since it is available only in India. Therefore, the data with customer purchases stays within the boundaries of the country. Purchases made through Visa, MasterCard, and AmEx cards are processed through an international payment gateway and will be shared across the borders of the country.

Cards offered

At present, RuPay only offers debit cards, whereas Visa, MasterCard, and AmEx offer debit as well as credit cards.

Insurance cover

The Indian government offers accidental insurance covers for all RuPay cardholders. The same benefit is not extended for Visa, MasterCard, and AmEx cardholders.

Issuing Banks

The following are a list of banks in both the public and private sector that issue RuPay debit cards:

Public Sector Banks

Punjab National Bank
UCO Bank
Corporation Bank
IDBI Bank
Bank of India
State bank of India
Central Bank of India
Bank of Maharashtra
Dena Bank
Bank of Baroda
Syndicate Bank
United Bank of India
Andhra Bank
Punjab and Sind Bank
Indian Bank
Vijaya Bank
Oriental Bank of Commerce
Allahabad Bank
Union Bank of India
Bhartiya Mahila Bank
Canara Bank
Union Bank of India

Private Sector Banks

Karur Vysya Bank
Kotak Mahindra Bank
Axis Bank
Federal Bank
South Indian Bank
HDFC Bank
Lakshmi Vilas Mittal Bank
ICICI Bank
IndusInd Bank
Tamilnad Mercantile Bank
Ratnakar Bank

Key Features of RuPay Debit Cards

Here are some of the features offered by RuPay debit cards that sets it a league apart from ither debit cards in the market.

RuPay debit cards are accepted in over 10,000 e-commerce sites and more than 8 lakh POS terminals.
RuPay debit cards are welcomed at more than 1.8 lakh merchant terminals in india.
All the processing is done within the country. This would ensure faster transactions as compared to other debit cards in the market.
RuPay cards are offered by public sector, private banks, co-operative and rural banks.
When you make a transaction with RuPay cards, the transaction fee that is charged to the merchant is 0.01%.

Difference between RuPay Card and Visa Debit Card

Sometimes differences between a RuPay Card and a Visa Debit Card can be confusing. The main differences are:

One of the main differences between the cards is that RuPay is a domestic card with its own payment gateway. The payment network is approved just like VISA and MasterCard.
RuPay, being a domestic product comes with lower transaction charges than a Visa Debit Card, which has processing abroad.
RuPay Card transactions are faster in processing as they happen within the country, while Visa cards take more time as the transactions are processed internationally.
While RuPay cards can only be used within India, Visa cards can be used outside India as well.
Visa card banks are required to pay an entry fee or a quarterly fee to join the network, while RuPay card banks are not required to do so.
While RuPay offers only debit cards for online transactions, Visa cards allow both credit and debit cards for online transactions.

RuPay Card in Jan Dhan Yojana

Adding a provision of RuPay Card in Jan Dhan Yojana has added to the scheme’s benefits. It is expected to be India’s answer to the top most transaction processing cards in the world. Benefits of having a RuPay Card in your Jan Dhan Yojana account are:

Faster processing: RuPay cards enable faster processing of transactions as the card is domestic. Since the transactions take place within India, the process is fast.
Affordable: RuPay cards come at an affordable cost. This enables the banking facility and card technology to be reachable to remote areas.
Lower processing fee: As the transactions are within India and the processing is carried out domestically, the fee is lower per transaction.
Use in ATMs: The RuPay card can be used in over 1.45 lakh ATMs all over the country. More than 8.75 lakh POS terminals allow usage of these cards. It can also be used in over 10,000 e-commerce sites.
Privacy protection: Usage of the RuPay card ensures protection of its data as it happens within the country.
Customised products and services: Indian users of the card can avail a wide range of benefits including customized services and products.
No processing fee: As RuPay is issued by a government body, banks are not allowed to use its services without any additional quarterly processing fee.

Documents required to apply for a RuPay Debit Card

Proof of address
Proof of identification
2 passport size photographs

Customers with accounts in the banks mentioned above can obtain a RuPay debit card by filling out a form at their bank branch, requesting for a RuPay debit card.

Register and use RuPay Debit Cards for online transactions

RuPay Debit Card is a product of National Payments Corporation of India (NPCI) which enables its users to carry out online transactions. You can follow the steps given below when you use RuPay Debit card online for the first time:

Before using your RuPay card for any transaction, you must first register it for ecommerce payments.
Once the payment screen is in front of you, select RuPay card as the payment option.
You will be then prompted to enter the details of your card such as card number, expiry date, CVD2 (3 digits on the back of the card).
The cardholder then receives an OTP on his or her registered mobile number and email ID
You are then required to enter the OTP and select an image from a small collection of images. The image needs to be remembered for all the transactions.
You are also required to enter a phrase of up to 40 characters and remember the same for any future transactions.
You must then enter your ATM PIN using mouse clicks.
For some banks, a RuPay Premium PaySecure Service pop-up window is displayed on the screen and you are registered while you make the transaction.

For subsequent transactions:

On the payment page, you must enter all the card details such as card number, CVD, and expiry date.
You must also identify the correct image, the one that was registered during the first transaction.
Also, you must enter the correct phrase used while registration.
Enter the correct PIN to complete the transaction.

Eligibility Criteria for RuPay Debit Cards

All public, private, regional rural banks and co-operative banks in india are issuing RuPay debit cards.
Central Bank of India, Bank of India, HDFC Bank, ICICI Bank, State Bank of India, Union Bank of India and Punjab National Bank are some of the Indian banks offering RuPay cards.
Customers can get a RuPay debit card with a no-frills savings account. Also, you can open an account under PMJDY scheme (Prime Minister Jan Dhan Yojana).
You need basic KYC documents like ID proof and address proof to avail a RuPay debit card.