Launched by the National Payments Corporation of India (NPCI) in 2012, the RuPay debit card gained immense popularity following the Government’s Pradhan Mantri Jan Yojana scheme in 2016. Offered with Basic Savings Bank Deposit Accounts which are zero-balance savings accounts as part of the financial inclusion drive of the Government of India, the number of users of the card have grown multifold since. According to a report, the RuPay card increased its volume in FY 2017-2018 by 136% to Rs.654.3 billion worth in transactions.
India’s answer to foreign card associates such as VISA, MasterCard and so on, the National Payments Corporation of India (NPCI) is looking to broaden the reach of RuPay debit cards by including them in the fold of small finance banks and payments banks. With small finance banks and payments banks being given the green signal by the Reserve Bank of India, the NPCI looks to take the RuPay debit card to the rural and low-income individuals and increase its customer base on the whole.
Aligning with Government of India’s digitisation drive and looking to compete with foreign card associates who are still dominating the digital transaction market in India, the NPCI is adopting the incentive-based approach to lure customers to avail the RuPay debit card. The NPCI is looking to tie up with chain stores as they have done with Big Bazaar to offer customers with transaction discounts when they make payments using their RuPay debit card. In addition, with the RuPay debit card taking a quick grip over the nation, the launch of the RuPay credit card seems like the NPCI’s next big initiative.
Source: Business Standard