From PTI in Riyadh
India signed an agreement with Saudi Arabia on October 29, 2019 to launch the ‘RuPay Card’ in the Kingdom, making it the third nation in West Asia to initiate India’s digital payment system.
It will benefit the 2.6 million Indians in the Gulf Kingdom and Haj and Umrah pilgrims.
First of its kind
The RuPay card is a first-of-its-kind Indian domestic Debit and Credit Card payment network, with acceptance at ATMs, POS devices and e-commerce websites.
It was launched in 2012 to fulfil the Reserve Bank of India’s vision to have a domestic, open and multilateral system of payments.
India has already launched the RuPay card in the UAE, Bahrain, Singapore and Bhutan.
MoU Signed
During Prime Minister Narendra Modi’s visit, an MoU was signed to launch the RuPay cards in Saudi Arabia, said a joint statement.
There are more than 2.6 million Indians working in Saudi Arabia, the largest expatriate community in the country.
Nearly 200,000 Haj pilgrims and over 300,000 Umrah pilgrims from India visit Saudi Arabia every year and acceptance of RuPay card will allow them to transact at cheaper rates.
RuPay is a highly secure network that protects against cyberhacks and is India’s version of Master Card and Visa.
There are close to 500 million RuPay cards in circulation in India.
RuPay has also tied-up with international players like Discover, Japan Credit Bureau and China Union Pay to enhance its international acceptance and recently achieved a milestone of issuing 25 million RuPay cards.
India’s relations with Saudi Arabia have been on an upswing over the last few years based on burgeoning energy ties besides cooperation in several other areas.
Prime Minister Modi’s first visit to Riyadh in 2016 put bilateral ties on a new trajectory.
About RuPay Card
RuPay is the first-of-its-kind domestic Debit and Credit Card payment network of India, with wide acceptance at ATMs, POS devices and e-commerce websites across India.
It is a highly secure network that protects against anti-phishing. The name, derived from the words ‘Rupee and ‘Payment’, emphasises that it is India’s very own initiative for Debit and Credit Card payments. It is our answer to international payment networks, expressing pride over our nationality.
RuPay fulfils RBI’s vision of initiating a ‘less cash’ economy. This could be achieved only by encouraging every Indian bank and financial institution to become tech-savvy and engage in offering electronic payments.
Issuing Banks
Presently, RuPay has collaborated with almost 600 international, regional and local banks across the country. It’s ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N A and HSBC.
It expanded its shareholding in 2016 to 56 banks to bring more banks across sectors under its umbrella.
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India’s Prime Minister Narendra Modi with Saudi King Salman bin Abdul Aziz Al Saud in Riyadh on Tuesday, October 29, 2019 (PTI Picture)
RuPay is a card scheme, conceived and launched by the National Payments Corporation of India (NPCI) on March 26, 2012. It was created to fulfil the Reserve Bank of India’s (RBI) vision to have a domestic, open and multilateral system of payments.
RuPay facilitates electronic payment at all Indian banks and financial institutions.
NPCI maintains ties with Discover Financial, JCB to enable RuPay card scheme to gain international acceptance.
In India, 90% of credit card transactions and almost all debit card transactions are domestic; however, the cost per transaction was low with RuPay compared to other international card schemes.
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Photo Caption:
India’s Prime Minister Narendra Modi with Saudi King Salman bin Abdul Aziz Al Saud in Riyadh on Tuesday, October 29, 2019 (PTI Picture)
