Basically India is trying to do what China has already done with UnionPay. Rupay will succeed but will take time. As it is unlike credit cards, debit cards just a secure method of accessing a bank account. You don't even need to use a plastic card - it can be an NFC enabled phone or bio-metric etc. Cards as a method of payment will compete with e-wallets (such as Airtel) but I believe bank-accounts will remain and since Rupay is basically a method of accessing those, it will finally come of age.
Will be interesting to see the development. A country with 1.2 billion people must have its own system and products rather than depend on the foreign financial products.
RBI has kept things in control (inflation etc) when the government failed to do anything because of being afraid to antagonize their own rats looting away the granaries.
RBI's recent initiatives in regulating banks is impressive, at least they are functioning well. NEFT, RTGS are working properly, it's good to break free from the clutches of via/ mastercard overlords.
It seems from above article that the RuPay is only a debit card. Agreed that debit card transactions have increased in India, the card owners should think why they should pay to foreign companies if the servises are available by indian company.
In fact one should think of starting a payment gateway for credit cards in competition with Master, Visa and American express.
If more and more indians use Rupay based Credit cards, the time will come that Rupay will be accepted all over the world. Let us at least make the beginning.
The finance ministry officials are great visionaries and arm-chair managers of the country. Give one example of something initiated by them which has clicked. Experience tell that anything they have put their hands to has ultimately become sick and has been abandoned half way. Need examples?
Re: RuPay
by wizardo id on Apr 10, 2012 10:40 AM
bulk of the shopping is done in india, we use a lot of services in india, only 10% or less people will use it for transactions abroad. so, dont you think it's wise not to lose money to competitors, at least its an RBI initiative, they are not corrupted. I hope they make it click and the money stays in india!
Another Scheme - where bureaucrats (In the Ministry of Finance - this time) will make money. Look at Aadhar - most of the people (60% ) are still covered under the scheme that is on for more than 5 years. Even the ones who are covered - either do not have their Aadhaar card - or have something or the other not working.
Do these people know the spending power of MasterCraft/Visa/Amex Cards. These card companies have deep pockets and will immediately bring down the cost and increase the adv on TV/social media. Our Rupay will stand nowhere. Any why should a common man go for this - if the scheme is not giving any advantage / cash back to him. Plus - will these cards be acceptable - when one travels abroad. Leave this, I am sure, even at the merchants place - the ringing machine would be down most of time and lead to the failure this plan.
Further, if ones looks at similar schemes from the Govt - who is accepting the Aadhar cards, in India today. Voter's card, DIN Card - all useless schemes, where the Govt empployees and agents are making money and none of these schemes are successful at any levels.
Re: RuPay
by Deepak Wagh on Apr 09, 2012 04:26 PM
Stop being cynical. You are putting too many doubts before its operational.It is a good move by NPCI to counter Visa/Master monoploy. This is how competition develops and ultimately benefits common man ( Remember Telecom History-Years to get one landline then, to instant connection -now)
Re: Re: RuPay
by Kadambi K on Apr 09, 2012 10:57 PM
Good answer Deepak. Finally some common sense and understanding of how free market works rather than ranting opinions.
Re: RuPay
by krishna jadhav on Apr 10, 2012 11:01 AM
Are you really "Bharat". Becuase considering the negativity in your post, it seesm that you dont aprreciate the good initiatives. Master and Visa may have deep pockets but remember they are picking your pockets. So wlecome this initiative and try to keep the money in country.
