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RuPay gaining currency irks US companies

RuPay gaining currency irks US companies

US companies MasterCard & Visa have asked Reserve Bank and the government to consider their services, which are cheaper than that of the local card issuer, RuPay. They are panicked by a sharp rise in cards issued by RuPay. RuPay’s share has jumped to 35% (222 million) cards in the domestic market, in just 4 years as against 28% market of Master card. They see the rise as a result of favour by the government. They directly complained against Jan Dhan Yojana, the financial inclusion programme of union government.

Jan Dhan Yojana, considered as the world’s biggest financial inclusion programme, provides great opportunity for electronic payment providers like MasterCard & Visa. Their exclusion from such programme will leave them in wilderness, with an edge to RuPay.

Benefits if level play is provided:

  • Will help build a scalable, inter-operable network.
  • It will lead to further decrease in transaction cost.
  • It will promote more financial inclusion
  • Free competition will promote efficiency that will give RuPay external exposer.

However, support for RuPay is needed

  • To bring RuPay at level with international giants
  • To promote internal financial security
  • To break the monopoly of MasterCard & Visa
  • To lessen dependency over foreign systems
  • To lessen drain of wealth in the form of fee paid to MasterCard & Visa


  • Is an Indian domestic payment card scheme, launched on 26 March 2012
  • Initially it was named IndiaPay system
  • It was conceived and launched by the NPCI (National Payment Corporation of India), as an alternative to the MasterCard and Visa card schemes.
  • It provides a unified “Kisan Card”, issued by banks across the country under KCC, enabling farmers to transact business on ATMs and PoS terminals.
  • RuPay cards are accepted
  1. At all ATMs across India
  2. On the international Discover network , under the NPCI’s agreement with DFS (Discover Financial Service)
  3. At all PoS terminals in India. To enable this, RuPay has certified 29 major banks in India to accept the RuPay card at their respective PoS terminals located at different merchant locations
  4. Online on 10,000 e-commerce websites, with the same PIN which they use for ATM transactions
  • The issuers
  1. All Banks in India are authorized to issue RuPay debit cards to their customers for use at ATMs, PoS terminals, and e-commerce websites.
  2. RuPay cards are also issued at about 200 cooperative and rural banks to promote financial inclusion
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