A Comprehensive Guide on RuPay Card
What is RuPay?
RuPay is a combination of two words- Rupee and Payment. RuPay Card is an Indian version of international debit/credit cards like Visa, MasterCard and AmEx.
This card was launched by the National Payments Corporation of India (NPCI) with the help of RBI. It facilitates online payments at all Indian Banks and financial institutions.
How Is RuPay Card Different From MasterCard And Visa?
The major differences between a RuPay card and master card or Visa card are
1. Processing fees
Since processing for Visa and MasterCard transactions is done overseas, hence the fees is relatively higher than a RuPay card. RuPay Card transactions are approximately 23% less costly than a Visa or MasterCard transactions.
2. Security
Yes, RuPay cards are totally secure as they come with enhanced security of 256-bit encryption and require an OTP which is sent on your registered mobile number for each and every transaction that you make.
Also, since these are domestic cards, the data is secure within the boundaries of the country and is not shared outside the country unlike Visa and MasterCard transactions.
3. Cards offered
As of now, RuPay only offers debit cards whereas Visa and MasterCard offers both debit and credit cards.
4. Fee Structure
The fee structure of RuPay Card is different from other cards in the sense that banks need not pay any entry fee to be a part of the network whereas in case of other cards, banks need to pay an entry fee as well as a quarterly fee to enter the network.
Advantages of RuPay Card
RuPay, an initiative taken by NPCI along with RBI and as discussed above, is an Indian version of credit and debit cards. The main motive behind creating this card is to address the needs of Indian consumers, merchants and banks. Here let’s have a look at what are the benefits of RuPay card-
1. Low Cost
Since in RuPay card transactions, all the processing happens within the country, hence the overall cost of transactions and settlement is very low compared to the Visa and MasterCard.
2. Secure transactions
The SMS alerts and notifications that are sent to the user’s registered mobile number after each and every transaction is done assures the users of the safety and security of the transaction.
3. Greater geographical reach
Even people in rural areas can easily apply and use this RuPay card.
4. Reliability of data
The data of users of RuPay cards is essentially safe because the data stays within the boundaries of India and is not accessed at any place outside India.
Is it safe to use RuPay cards to shop online?
RuPay works with the methodology of an OTP. You will receive an OTP on your registered mobile number that you would be asked on making any transaction. So, if your mobile number is not registered with the bank, you will not be able to make any online transaction.
Can I use a RuPay domestic card in PoS terminals?
Yes, a RuPay domestic card can be used in all PoS (Point of Sale) terminals or any online transaction just like any other Visa/MasterCard, if the transaction is done within India.
Internationally, RuPay cards are accepted in all Discover & Diner PoS and ATM networks.
How to get RuPay card?
RuPay debit cards are issued by all private, public, rural regional and cooperative banks. Even if you do not have a savings account, you can apply to the bank for a RuPay card. However, there are certain banks which will ask you to first open a bank account with them and then issue the card. KYC verification is mandatory under all circumstances.
What are the documents required for applying for a RuPay card?
For applying to a RuPay card, you will need following documents-
- Proof of address
- Proof of identification (Aadhaar card, Voter ID, or any other IDF proof)
- 2 passport size photographs
You will have to fill all the necessary and mandatory details asked in the Debit Card application form for easy and quick processing or you may experience delays in processing affected by the omission of information.
Will I have any insurance cover?
National Payments Corporation of India (NPCI) offers accidental, death and permanent disability insurance cover to all RuPay cardholders. Where the eligibility for classic cardholders is Rs. 1 lakh, premium cardholders are eligible for Rs. 2 lakh insurance cover.
What is the withdrawal limit of RuPay debit card?
The withdrawal limit at ATM and for shopping limit on PoS terminals is different for different banks. For example, withdrawal limit at ATM and PoS terminals for each bank is mentioned below-
- Central Bank of India: Rs. 40,000 and 1,00,000
- Bank of India: Rs. 25,000 each
- Bank of Baroda: Rs. 25,000 and Rs. 50,000
- Maharashtra Gramin Bank: Rs. 10,000 each
- Punjab National Bank: Rs. 25,000 and Rs. 60,000
- Oriental Bank of Commerce: Rs. 25,000 each
- Dena Bank: Rs. 20,000 & Rs. 25,000
- UCO Bank: Rs. 25,000 each
- Vijaya Bank: Rs. 30,000 and Rs. 25,000
Is RuPay card internationally accepted?
RuPay cards are accepted across the whole country at almost all ATMs, PoS terminals, and e-commerce portals. In fact, certain RuPay cards are accepted internationally also like platinum debit/credit card & select credit card through the Discover Financial Network and JCB Network.
Disclaimer
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7 comments
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Hi,
Thank you for the read.
That’s ok but you can not use Rupay card outside india and even in India some atms (rare) does’nt accept rupay.
so what u will say about that..
Hello Pankaj,
Thank you for your comment.
Rupay Card has been developed for domestic transactions i.e transactions within Indian territory only.
Like every other product, Rupay Card too has its pros and cons.The transaction charge on Rupay Card is far lower than that of other cards .
Also, the government is taking different steps to reduce the various cons associated with the Rupay card so that it may become an even better product.
You can red our related blogs on banking topics here.
Happy Reading!!
Nice information
for online shopping,demanding debit card VISA or MASTER CARD,ARMEX,DINERSCLUB ,rupay isnot showing.how can we use it for on line shopping?
Hello Manjinder,
Thank you for your comment.
For using Rupay Card for online shopping, it has to be listed as an acceptable payment method.
Most of the Indian e-commerce sites viz: Amazon, Flipkart allows Rupay Card as a mode of payment.
To use Rupay card as a payment mode for online shopping you will have to first register the Rupay Card.
For Registering the Rupay Card for the first time for online shopping:
(1) Go to the payment screen and select the Rupay Card as payment option
(2) Enter the details as instructed.
(3) An OTP will be sent to your registered mobile number/mail id(registered with the bank whose Rupay card you are using)
(4) A random set of images will appear, you will have to select a particular image(please remember this image as you will require this for all subsequent transactions.
(5) Now a phrase (upto a max of 40 characters has to be entered, remember this phrase it will be required for your further transactions)
(6) The correct ATM PIN has to be entered by using mouse clicks only.
(7) Once you enter the correct pin, the transaction will be successful.