From withdrawing cash to making cashless payments, RuPay card can be used for lots of things. Here's all you need to know.
Prime Minister Narendra Modi was recently spotted shopping at the Ahmedabad Shopping Festival through his RuPay card. He also tweeted, saying, “At the Ahmedabad Shopping Festival I too could not resist from shopping! Purchased some Khadi products using the RuPay card.”
Payment networks and gateways, such as MasterCard, Visa card, Diner’s Club and American Express, are the most popular and widely-used gateways in over 200 countries. India too has its own RuPay card scheme created by the National Payments Corporation of India (NPCI), the umbrella organization for all retail payments in India.
Under the Pradhan Mantri Jan Dhan Yojana, the RuPay card was introduced as a kind of debit card that comes when you open a bank account. The card is issued by NPCI and is accepted at all ATMs across the country. It was brought in to promote financial inclusion in India. Starting from withdrawing cash to making cashless payments, you can use this card in PoS machines for making cashless payments at any place. Along with these, there are a lot of benefits that you can avail if you are using a RuPay card.
Benefits of using a RuPay Card
These cards come with a lower processing fee as compared to other modes of payments as it is a domestic card, and banks charge nominal processing fees on it. This benefits both the banks and the cardholder. As this card comes at a lower cost, it is easily affordable and accessible to people. Almost 1/3rd of transaction fees are cut down, as compared to those foreign cards.
NPCI data claims that this card is accepted at over 8.75 lakh POS machine terminals and 1 .45 lakh ATMs. Additionally, the card also offers a wide range of customized benefits and services to its cardholders such as cash-back, surcharge waiver on fuel, insurance cover, and free access to airport lounges. You can avail a surcharge waiver of 1 per cent every month on fuel purchases made at petrol stations in India. The government has also come up with accidental insurance benefit on all RuPay cards for all account holders (see the type of RuPay cards below). You can also avail cash-backs while paying utility bills such as electricity, water, gas etc. using the RuPay card.
Types of RuPay cards
There are various types of RuPay cards in circulation right now.
RuPay Debit Card – The RuPay debit card is the normal debit card but comes with all the facilities like your savings bank account. You can avail any services anytime, anywhere. You can also pay for shopping, paying bills online and transact in a secure way.
RuPay Classic Debit Card – It is similar to the normal debit card but you also get additional comprehensive accident insurance cover up to 1 lakh with this card. Along with exclusive domestic merchant offers, you also get disability cover up to Rs 1 lakh.
RuPay Platinum Debit Card – This platinum debit card comes with gift vouchers as welcome benefits. It also offers you access to more than 30 domestic lounges. While paying utility bills, you can also enjoy cash-backs. Similar to the classic debit card you also get comprehensive insurance cover but up to Rs 2 lakh.
RuPay PMJDY Card – The Pradhan Mantri Jan Dhan Yojana (PMJDY) card was launched by Prime Minister Modi on August 2014. This is a zero balance SBI account which one can open and they are given a RuPay PMJDY card with the account opened under the PMJDY scheme. This comes with a free life insurance cover up to Rs 30,000 and free accident cover up to 1 lakh. People holding a PMJDY account also get an overdraft facility of Rs 5,000.
RuPay Mudra Debit Card – If you open an account under the Pradhan Mantri Mudra Loan Yojana, you will be given a RuPay Mudra Debit Card. Under the Pradhan Mantri Mudra Loan Yojana, Mudra (Micro Units Development and Refinance Agency) schemes such as the Shishu, Tarun, and Kishor were introduced. Under the Shishu scheme, micro units requiring funding up to Rs 50,000 are funded. Micro-units require funding between Rs 50,000 and Rs 5 lakh and between Rs 5 and Rs 10 lakh are funded under the Kishor and Tarun schemes, respectively.