RuPay Credit Card: Overview
RuPay is a financial transaction service that works along the lines of international payment processors like VISA and MasterCard. It is a financial system that allows Indian companies to make electronic payments all across India. The system was set up after the Reserve Bank of India (RBI) realised the need for a domestic payment system that could bring all financial transactions under one banner. This was done in order to lower costs and to establish India’s very own financial system that would compete at both the national and international level. Thus, the RuPay financial service was born.
Set up by the National Payments Corporation of India (NPCI) in March 2012, RuPay offers various types of cards for banks to
…show more content…
This trend is likely to continue as more and more youngsters get well paying jobs. This means that each year more and more people are entering the middle class segment. This makes it imperative to have a domestic financial system that would cater to local needs at a low price. This will save on cost and allow Indian banks to have a more profitable payment processing system in place.
As of now, most of the transactions that happen in India are made through VISA and MasterCard services. These service providers have higher fee plans that make it difficult for Indian banks to cut down costs and improve their margins. The introduction of RuPay will reverse this trend and help the domestic banks to compete in the market with credit cards that comes to them at a lower cost.
Why RuPay Credit Card
The RuPay credit card can be used at over 1.45 lakh ATMs across India. When it comes to online transactions, they can be used in more than 10,000 web portals. This opens up a range of financial options for customers as now they can shop at different outlets without worrying about the acceptability of the card. NPCI also has tie-ups with 29 major banks for PIN-based transactions across many outlets in
…show more content…
The RuPay credit card will play a pivotal role in providing money for credit to the poorest of the poor and help them in becoming financially independent. The RuPay credit card will help tremendously in this regard and farmers will be able to buy necessary materials and take loans against the credit limit without any worries.
RuPay Credit Card: Features and Benefits
• Made in India: This system is customised and tailor fit for Indian needs. It has specifically been designed, keeping the Indian customer and banking needs in mind.
• Cheaper: Since most transactions that happen in this system are domestic, the costs are bound to be lower. This will help reduce costs and help Indian banks save money.
• Access to Untapped Market Segments: Due to the wide accessibility of this system, it can be used in many sectors that still remain untouched. For instances, in rural areas, a lot of financial services remain out of reach for the farmers. This system will help in easing all financial activities. For instance, RuPay cards include the Kisan card, which allows farmers to avail many financial
It is where the poor uses the bank's money which they must pay back. Yunus tried to ask the bankers to expand the program but some of them do not believe in this concept. They could not accept the fact that the poor can actually pay back their loans. Some of them even questioned if the people is really poor since they can afford to repay the loans. Yunus explained that they are really poor and to show proof of it he dares them to visit the poors' homes and they will see not a single furniture. He added that the poor repay the loans through nothing but hardwork. Instead of encouraging the bankers to expand the program on a district level, they discourage Yunus and his students having some reasons not to pursue the expansion. After working so hard in pursuing the expansion that Yunus and his students are planning, they were able to succeed in 1983 with a new law created which was name as Grameen Bank. Later on, it became more deeply involved in the social conditions of the less fortunate people in
The invention of the modern day credit card by Alfred Bloomingdale, Frank McNamara, and Ralph Snyder in 1949 brought much debate about the invention by the people of the time, it helped and even put people in debt, and increased the amount of Credit Acts in Congress. The invention of the Credit Card is now America's main source of payment and an essential element of daily life.
The use of credit cards is much more dangerous than use of checks or cash. Paying with cash is very easy; for knowing how
Much has been written about the dangers of misusing credit cards, and it is true that many people have run into serious problems because of the careless use of credit. Used properly, though, credit cards can be a source of many benefits, and can provide certain protections and warranties not available when paying by cash, cheque or debit card.
A credit card is a great way to build credit history. Credit history is a record of how somebody has repaid loans and bills, it is usually used as a guide for whether a company will lend you money(Consumer). You can also get multiple credit rewards such as cash back, gift cards, frequent flyer miles (BOA). Now, if you think about a very frequently occurring situation we can see the obvious benefit of using a credit card. Imagine you are two days away from your next paycheck from work and your money supply is running a bit short. If you were to have a debit card, you would not be able to buy food for the next two days because you do not have money in your bank account at that very moment. However, with a credit card, you can buy food without the money being directly in your bank account. You can then pay the amount you spent for food, two days later once you receive your paycheck. With this ability to charge money to your account, you are also somewhat safe from theft. Since transactions are not instant, you can report fraud to your bank without actually losing any money (BOA). While we can see that credit cards have many great benefits, debit cards can also spark people’s
In the integration of Indian financial market with international markets, the Reserve Bank of India to market development has been that of cautious and informed by the experience of other developed and developing countries. Even within the constraints imposed by this approach, the Reserve Bank and the India Government have taken steps that include progressive liberalization of capital flows, calibrated increase in investment limits for Foreign Institutional Investors in government and corporate debt, introduction of Qualified Foreign Investor as a separate investor class, expansion of the menu of risk management instruments,
so doing the business in India which is the Metro Cash & Carry that can be applied in
Secure communications is the Company's forte with a proven record of engineering strategic communication networks for India's Defence forces. Extensive in-house R&D work is devoted towards specialized areas of Encryption, NMS, IT and Access products to provide complete customized solutions to various customers. The competitors of ITI have been Tata Telecom., Shyam Telecom Ltd., Krome Communications Ltd., Himachal Futuristic Communications Limited. and Bharti Telecommunications.
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
Internet banking: This banking system is also very much popular in India. Through this system people can operate all types of financial transactions in the easiest way and its greater advantage is that there is no any time limit. This is also known as a cost benefit tool.
Since the poor people do not have steady jobs, their incomes are irregular and unpredictable, and banks have no collateral against which the loans can be given out; thus the banks do not want poor clients from both rural and urban areas. Furthermore, the “geographical distance, the widespread illiteracy, and the diverse backgrounds of borrowers” (in this case the rural poor) and the frequency of high cost transactions make it difficult and non-desirable for the banks to give out the loans to rural poor communities. Banks also believe in the fact that the government’s rules and regulations make it difficult to distribute loans to the poor. India’s rural poor have their own financial needs that are influenced by their location, living situation, and their availability to resources and opportunities.
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
In many countries, the use of debit cards has become so widespread that their volume has overtaken or entirely replaced cheques and, in some instances, cash transactions. The development of debit cards, unlike credit cards and charge cards, has generally been country specific resulting in a number of different systems around the world, which were often incompatible. Since