As compared to other modes of payments, RuPay cards come with a lower processing fee. As it is a domestic card, banks charge nominal processing fees on it, which benefits both the banks and the cardholder.
SBI Card has announced that it is going to launch RuPay credit cards soon. The move will give a boost to the homegrown payment network in this fast-growing segment. RuPay, developed by the National Payments Corporation of India (NPCI) — an umbrella organization for operating retail payments and settlement systems, is the first-of-its-kind domestic debit and credit card payment network of India. Currently, in India, the credit card segment is dominated by the US-based payment gateways like Visa and MasterCard.
RuPay cards, as of now, are only accepted in a few countries, including Singapore and Bhutan. It was also recently launched in the UAE. To enhance its international acceptance, RuPay has also tied up with international players like Japan Credit Bureau, China Union Pay and Discover.
Benefits of RuPay Card
As compared to other modes of payments, RuPay cards come with a lower processing fee. It is so because, it is a domestic card, and banks charge nominal processing fees on it, which benefits both the banks and the cardholder. RuPay cards cut down almost 1/3rd of transaction fees, as compared to foreign cards.
According to early 2019 data of NPCI, it is said that the card is accepted at over 1 .45 lakh ATMs and 8.75 lakh POS machine terminals. RuPay card also offers a wide range of customized benefits and services to its cardholders. These services include surcharge waiver on fuel, cash-back, insurance cover, and free access to airport lounges. RuPay card also offers accidental insurance benefit for all account holders on all type of cards.
Types of RuPay cards in circulation right now;
- Debit Card: This RuPay debit card is like any other normal debit card but comes with all the facilities of general savings bank account. You can avail any services anytime, anywhere. Cardholders can also pay for shopping, paying bills online and transact in a secure way.
- Classic Debit Card: RuPay Classic Debit card is similar to the normal debit card but comes with an additional comprehensive accident insurance cover up to 1 lakh. Users also get disability cover up to Rs 1 lakh, along with exclusive domestic merchant offers.
- Platinum Debit Card: RuPay platinum debit card comes with gift vouchers as welcome benefits. You can also enjoy cash-backs while paying utility bills. This card also offers comprehensive insurance cover up to Rs 2 lakh. RuPay platinum debit card gives the cardholder access to more than 30 domestic lounges.
- PMJDY Card: RuPay Pradhan Mantri Jan Dhan Yojana (PMJDY) card was launched on August 2014. One can avail this card by opening a zero balance SBI account under the PMJDY scheme. PMJDY Card comes with a free life insurance cover and free accident cover up to 1 lakh. You can also get an overdraft facility of Rs 5,000 while holding a PMJDY account.
- Mudra Debit Card: Under the Pradhan Mantri Mudra Loan Yojana account, account holders are given a RuPay Mudra Debit Card. Under the PMMLY, Mudra (Micro Units Development and Refinance Agency) schemes such as the Tarun, Shishu, and Kishor were introduced.