If you are a frequent user of debit cards or credit cards for digital financial transactions, then, you must have heard about “RuPay Card.” Soon after its launch, it successfully gained a significant number of users. This heavily shook other famous and established card networks like Visa and MasterCard of the Indian subcontinent. Not only this, but at the end of the second decade of the twenty-first century, it also captured around 60% share of India’s card market. Well, it makes you wonder what has led to the immense rise of RuPay in the Indian card market. This written piece provides you with all the insights about RuPay Cards. So, here it goes.
What is a RuPay card?
It is an indigenous payment card specially created for users present in India. The term “RuPay” is a blend word derived from “Rupee” and “Payment.” It may sound like paying in rupees. This is true. RuPay is an Indian payment service system established to facilitate domestic, open, and multilateral financial transactions. You might have seen that the colors of the logo of RuPay give an illusion of the Indian flag. It signifies the indigenous payment card. Do you know why the Indian government had to create it? You may view it as a part of the “make in India” concept of the government but there are many reasons other than promoting nationalism.
Earlier, banks had to pay a high amount of money to international card institutions for affiliation and connection of networks. Thankfully, with the creation and successful implementation of RuPay cards, the banks do not need to pay an extra amount of money for transactions occurring inside the country. It is an alternative to international card associations (like Visa and MasterCard).
RuPay Card Launch and Adoption
If you look back at the financial history of India, then you will notice that the government was keen to create indigenous virtual payment cards. After creating it, government officials tentatively called it “India Pay.” Later on, with strategic planning, NPCI (National Payment Corporation of India) took the responsibility to implement the proposed indigenous card. Finally, that card was renamed “RuPay.” The RuPay scheme was launched on the year 2012 and officially the card was launched on 21st June 2013. The administrators launched RuPay with the aim and vision of modifying the banking infrastructure of India to achieve digitalized and cashless economy.
RuPay card was one of the key components of PMJDY (Pradhan Mantri Jan Dhan Yojna). Under this scheme, the government ordered the PSUs (Public Sector Banks) to issue only RuPay debit cards to new account holders. This helped the RuPay card to get a considerable share of the debit card market. In the current scenario, more than 1000 banks issue RuPay cards to their customers. These banks are-
- Public Sector Banks
- Private Sector Banks
- Co-operative Banks
- Regional Rural Banks
Since the year 2020, there has been a huge increase in the adoption rate of RuPay. The data of RBI mentions that the market share of RuPay significantly increased with the issue of more than 60% of total cards i.e., banks issued nearly 60.03 crores RuPay cards. The elimination of MDR (Merchant Discount Rate) charges on RuPay transactions was the key reason for it.
Types of RuPay Cards
There are the following major types of RuPay cards that you can select based on your choice-
Credit Card Variants
- Classic: It provides exclusive deals and merchant offers. It is beneficial for retail shopping.
- Platinum: Along with merchant offers, you will get insurance coverage of INR 2 lakhs and 24/7 concierge services. It is beneficial for those seeking travel assistance, hotel reservations, and consultancy services.
Debit Card Variants
- Classic: It provides exclusive domestic merchant offers.
- Platinum: You will get multiple benefits from the Platinum RuPay debit card viz.- Amazon pay offer, Swiggy offer, complimentary lounge program, comprehensive insurance coverage upto INR 2 lakhs, merchant offers, and 24/7 concierge services.
- Select: Along with the features of Classic and Platinum debit cards, here you will get curated health & fitness sessions in your home, spa services, gym access, health check-ups, a golf program, lounge access, and comprehensive insurance coverage upto INR 10 lakhs.
RuPay Card Benefits
You will get innumerable benefits from the RuPay card of which some significant ones are-
- Minimal Transaction Cost: This is the most appealing feature of the RuPay card. Since all the transactions take place within the country, the cost of settlement and transactions is considerably lower. This provides enormous benefits to the banks. The affordable transaction process encourages banks to opt for RuPay debit cards instead of international ones.
- Smooth Interoperability on various virtual payment platforms: The RuPay debit card functions smoothly on various payment channels like ATMs, PoS (Point of Sales) terminals, smartphones, and e-commerce platforms.
- Broad Access to Financial Services: The RuPay card aids its users with a wide range of financial services like banking, savings account, deposit accounts, pension, credit insurance, etc.
- Greater Reach: Consumers in rural areas can easily get a RuPay card with Jan Dhan Account. Also, the people who opened their accounts under Pradhan Mantri Jan Dhan Yojna got RuPay PMJDY cards.
RuPay Card Insurance
Under the Rupay Insurance Program, all RuPay card holders are eligible for the benefits of insurance. The insurance covers three different types of claims-
- Accidental Death Claim
- Permanent Disability Claim
The benefits of the insurance are given to those users who have performed at least one successful transaction within 45 days before the date of the accident. The amount of these insurance claims can range from 2-10 lakhs depending upon the variant of the RuPay debit card (RuPay Classic, RuPay Platinum, and RuPay Select). The personal accident policy provides worldwide coverage i.e., it will cover the user even if the accident happens abroad. RuPay pays the claim in the currency of Indian rupees. You can contact the RuPay cardholder bank branch in which you are registered to intimate the claim.
With a RuPay card, you can make payments for various utilities like travel, retail shopping, toll taxes, metro fare, parking fees, and many more. As of today, you can use the RuPay card for payments in four countries- Bhutan, Singapore, UAE, and Bhutan. It is a National Common Mobility Card (NCMC) and a successful project of the “Make in India” Campaign.