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NPCI to launch RuPay credit cards within a month: CEO A P Hota

The National Payments Corporation of India (NPCI) is all set to launch RuPay Credit Cards as the technological infrastructure necessary for its operations is ready for rollout.

According to Hota CEO NPCI ,RuPay credit cards will be launched in a month’s time and will provide banks a cheaper option in terms of transactional costs.

“We have ten banks who have tied up with us, and we will launch four types of cards — RuPay Select, RuPay Platinum, RuPay Classic and RuPay Murali Credit cards,” said Hota.

“The number of credit card users in India is quite small compared to the number of debit card holders. Of over 800 million card holders, less than 25 million hold credit cards,” Hota said.

In terms of transactional costs, NPCI is charging a fixed rate for transactions that might work out to around 90 paise. “Other players, especially international ones, charge on percentage basis and while they charge different rates for different banks, it works out to around Rs 2.5,” he pointed out.

NPCI would also launch ‘tap and go’ card for transit systems. The first two are set to be cards for Kochi and Bengaluru, to be launched by Prime Minister Narendra Modi this weekend.

Most of the PSBs issue RuPay debit cards to its  Account holders these days. This move has cost huge business loss to International players like Visa and MasterCard. However, in order to carry out international transactions on RuPay cards, International payment gateways should accept RuPay cards.Hence, global acceptance of these cards is a real concern. It would not be so easy for NPCI to capture international market seeing the popularity of Visa and MasterCard. Indian customers who carry out international transactions will have to use Visa or MasterCard until most of the international payment gateways and PoS machines accept RuPay cards.

Source: New Indian Express

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Vineet Suratran

Vineet Suratran is Founder and Editor-In-Chief at venturedawn.com. He is an Electronics & Telecommunications Engineer by profession and blogger by passion.

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