How RuPay aids govt’s financial inclusion thrust

1) What is a RuPay card?

RuPay is a homegrown card payment scheme launched by Reserve Bank of India-backed National Payments Corporation of India (NPCI). RuPay, the name being a portmanteau of “rupee” and “payment”, has been heavily promoted by the government. The seven-year old card system competes against global payment network firms like MasterCard and Visa. The card broadly comes in five variants. One such variant, RuPay Contactless card, acts as a national common mobility card, allowing users to pay for bus and metro charges besides making payments for toll and parking. It can be used at ATMs as well as for online payments.

2) Why is RuPay gaining prominence?

The idea of RuPay was devised to promote the use of electronic payments as well as to expand the idea of financial inclusion. The prime minister’s flagship scheme for financial inclusion to provide affordable basic banking services, the Jan Dhan Yojana, gave impetus to the payment scheme as its debit cards were issued to every account opened under the scheme.