All about RuPay Cards

What exactly is a RuPay Card? Is it the same as the Visa/MasterCard or is it something different and better? Well looking at the host of offers and privileges that come with the card, coupled with lower transaction costs, the RuPay card does seem to have a edge over its international counterparts.

What is a RuPay Card?

RuPay stands for the combination of two words; Rupee & Payment. It is similar to the cards that we use, viz; Visa & MasterCard but with an Indian touch. This scheme was conceived by the NPCI, a RBI initiative and was launched on 26th March 2012. RuPay cards facilitate e-payments for all Indian financial institutions & banks. In fact, all the banks in India can authorize the issue of RuPay cards to its customers.

Why was RuPay Card launched?

It is no doubt that India is moving towards being one of the major players in the world, and it is of utmost importance that we have our own payment solution, and hence the Government decided to roll out the RuPay card.

How is RuPay different from Visa/MasterCard?

• Indian system: Compared to Visa and MasterCard which are international systems, RuPay is 100% Indian system.

• Transaction charges: Since RuPay transactions happen within the country, the cost of each transaction is much lower when compared to the international counterparts; Visa/MasterCard.

• Entry Fees: For the usage of Visa/MasterCard, banks have to pay joining fees when they join the network, but this fee is waived off for the RuPay system.

• Transaction speed: Since all the transactions of RuPay system happen within the country, they have a high speed of transaction. Whereas, for the Visa/MasterCard, the transaction process happens at an international level which can sometimes exhibit low transaction speed.

• Transaction history: Since Visa/MasterCard are international cards, the transaction data has to be shared outside the country, but for RuPay the transaction history remains within the country.

Other Benefits of RuPay Card

• Coverage: RuPay cards are offered even by rural & cooperative banks along with selected private banks & all public banks like Vijaya Bank. This means that RuPay covers both small & big banks when compared to the international counterparts.

• Processing Fees: When compared to other card systems, RuPay has much lower processing fees. Banks will have to pay lesser transaction fees to the payment gateway since all the transactions happen in India only.

• Quarterly Fees: For international cards, banks are required to pay quarterly fees which are not there for the RuPay card system.

• SMS alert: For each transaction made via the RuPay card, the customer will get an SMS alert.

• Fuel surcharge waivers: All the variants of RuPay platinum cards offer a fuel surcharge waiver of 1% every calendar month at all the petrol pumps in India. This is because the banks charge higher transactional fees for international cards when compared to RuPay where a lower charge is levied.

• Benefits for train travellers: Customers can enjoy a cashback of Rs.25/- when an online ticket is booked from the IRCTC website (for a min of Rs.300/-) by using the RuPay card.

• Insurance Benefit: Government has extended an accidental insurance benefit of Rs 1 Lakh for Non-Premium RuPay cardholders and of Rs 2 lakhs for RuPay Premium cardholders. The claim is valid only if the cardholder has performed a minimum of 1 successful financial/non-financial transaction:

1. 45 days prior to the accident date for Premium cardholders.
2. 90 days prior to the accident date for Non-Premium cardholders.

RuPay Offers

Through tie-ups with a number of brands across various segments such as travel, apparel, grocery, dining  etc., the card offers attractive offers/discounts for its holders. Check out the complete list of offers here

How to apply for a RuPay card?

You can apply for a RuPay card like you do for any other card, through your bank. Most banks in India offer the RuPay card, for instance Vijaya Bank, SBI, HDFC, Kotak etc. 

At present, there are few limitations for RuPay cards, the major one being; it is not accepted internationally. However, for domestic usage it is definitely the most beneficial option.