India’s own homegrown card payment network, RuPay has been dedicated to the nation. This system is expected to be an effective alternative to global card payment networks like Visa and MasterCard. The system, developed by the National Payments Corporation of India, may gain global acceptance as the talks are on with the US-based Discover (for transactions in western countries) and JCB of Japan for the East. Customers will be able to book train tickets using RuPay pre-paid cards or for shopping abroad.
An indigenous system like RuPay will not only reduce cash dependence and cheque settlements but will also make easier to offer products based on specific requirements of diverse users in India. India is one of the few countries globally to have a domestic card payment system. Currently, over 12 % of GDP worth cash and coins are in circulation, which is pretty high.
RuPay, like other cards, works on three channels — ATMs, Points of Sale (POS) and online sales, besides Aadhaar-based micro ATMs. Till now, 31 public and private sector banks, 49 RRBs and 175 cooperative banks have issued 2 crore RuPay cards. The card is accepted at 1.6 lakh ATMs, 95 % points of sale terminals (over 9.45 lakh) and most online sites (about 10,000) in the country. All RuPay card transactions are processed within India and the cost is reimbursed in rupees, which helps save precious foreign exchange. For clearing and settlement of RuPay transactions, the banks will pay 40% lower fees vis a vis international platforms.