What do you understand by RuPay and discuss its potential benefits to India? Explain how it can help India to emerge as a Regional Financial Centre and Global Financial Service Provider?

What is Rupay:

• RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version of credit/debit card. It is very similar to international cards such as Visa/Mastercard.

Benefits:

• Lower transaction cost
• Sms alerts.
• Reduced processing fees
• It is imperative for India to create a low-cost electronic payment system if the ongoing endeavour to overhaul the existing system of welfare payments and subsidies is to succeed. The unique identity project will deliver a unique numerical tag for every Indian resident, which can then be used to create unique electronic bank accounts.
• Transferring welfare and other payments from government treasuries directly to beneficiary accounts would be possible. Thereafter, if the beneficiary can use electronic cards to spend the money in his account, it would remove one more layer of administrative mediation with its potential for corruption and leakage.

Global scale:

To offer a complete bouquet of card payment services at par with leading International Card Schemes, in March’12, NPCI had formed global alliance with Discover Financial Services (DFS), USAwhich has a strong global network. NPCI is further strengthening their network capabilities by creating global network alliances with key players like Japan’s JCB International & China’s UnionPay International over FY2016-17
 

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