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Tag: RuPay

  • New FASTag Design Targets Misuse Of Smaller Vehicle Tags On Larger Vehicles— Details Here | Economy News

    New Delhi: The State Bank of India has introduced a new FASTag design which is aimed at addressing the misuse of smaller vehicle tags on larger vehicles to avoid higher toll charges. This updated FASTag is specifically designed for Vehicle Class-4 (VC-04) which encompasses cars, jeeps and vans, as reported by Economic Times. The new tag has been available since August 30, 2024.

    Why Was the New FASTag Design Introduced?

    The new FASTag design was introduced to address the issue of incorrect tags being used on higher-class vehicles like trucks. The misuse of VC-04 tags on these larger vehicles has been causing financial losses for toll plazas, the Economic Times quoted SBI as saying. The updated design aims to make it easier to identify vehicle classes, allowing toll staff to quickly address any misclassifications and prevent revenue loss, as per the report.

    On August 30, 2024, SBI introduced several new products. Among them is India’s first MTS card, the MTS RuPay NCMC prepaid card. This card offers a convenient offline payment option for various transit services, including metro rails, buses, ferries, tolls, and parking.

    SBI also launched the OneView mobile application. This app allows customers to easily manage their NCMC prepaid cards, including topping up, tracking, and overseeing their usage all from one platform.

    “The Nation First MTS Card, issued without the need for KYC verification, along with the OneView app, streamlines card management, making it easier for users to top-up without the need to visit metro or bus counters,” said Mahesh Kumar Sharma, Deputy Managing Director of Transaction Banking and New Initiatives at SBI.

  • National Common Mobility Card: Is it revolutionary or only a fad?

    An NCMC is actually a contactless card that goals to allow a typical cost choice for various transit choices. “The idea is that of a single card that will probably be accepted at any metro location in India,” stated Mihir Gandhi, associate, chief – funds transformation, PwC India.

    Metro rail networks in Delhi, Mumbai, Bangalore and Chennai have their very own respective ‘smart’ playing cards for his or her passengers. These playing cards can be utilized to journey solely within the metro community of the identical metropolis. For occasion, a Delhi metro card can’t be utilized in another metro. NCMCs, although, are interoperable and are meant for use for metro throughout completely different cities and different transit choices, like buses and trains, and in addition for retail funds.

    View Full Image

    Graphic: Mint

    Many nations, just like the UK and Australia, have widespread mobility playing cards and even enable NFC-enabled debit and bank cards on Visa and Mastercard networks for use for public transit.

    How it really works

    NCMCs are issued as pay as you go and debit Rupay playing cards and can quickly be issued as bank cards as properly. A pay as you go card will be purchased from metro stations by finishing on-line KYC on the issuing financial institution’s platform. Debit playing cards, then again, are issued by the financial institution.

    The NCMC debit card, nonetheless, features like a pay as you go card for offline transit funds at metros, railways, buses and can be utilized to parking charges. The card has an offline pockets whereby cash will be loaded after which be used for offline transit funds. “Metro funds are offline transactions, which suggests there is no such thing as a instantaneous connectivity to servers to verify whether or not you’ve sufficient stability within the checking account. The card has a chip that acts like a handbag which must be loaded for making transactions,” stated Gandhi.

    Essentially, as an alternative of getting a separate pay as you go transit card, you’ll be able to simply get a Rupay NCMC debit card that can be utilized for transit funds as properly. The NCMC debit card will be recharged or loaded from the checking account instantly.

    In case of cost failures, the cardholder, each for pay as you go and debit playing cards, has to contact the issuing financial institution for decision. The metro workers on the station doesn’t supply assist on this regard.

    Challenges galore

    Currently, pay as you go playing cards are extra broadly used in comparison with debit playing cards. In all main cities, completely different banks have launched pay as you go NCMCs (see graphic) in collaboration with the metro companies, which can be utilized throughout completely different cities. However, when a cardholder strikes to a brand new metropolis, they could need to relink their card to the brand new metropolis’s metro company if the cardboard’s issuing financial institution is completely different from the lender that has tied up with the Metro company.

    Most pay as you go playing cards include a most loading restrict of ₹2,000 and largely assist offline retail funds.

    As for various transit choices, the NCMC card at present can’t be used for bus journey in Delhi (Delhi Transport Corporation bus community) and Bangalore (BMTC or Bengaluru Metropolitan Transport Corporation bus community) and native trains community in Mumbai.

    These challenges, together with increased utilization of UPI for smaller on-line and offline funds, have prevented the uptake of NCMC playing cards in an enormous manner. Moreover, there’s a common lack of know-how among the many staff of metro companies in cities like Delhi, Bangalore and Chennai who nonetheless proceed to promote their in-house good playing cards as an alternative of pushing NCMC playing cards.

    This Mint author visited two completely different metro stations in Delhi to buy a metro card and was provided the in-house ‘smart’ card by the workers.

    As per information stories, the federal government has directed all banks to make NCMC the default choice in all new Rupay debit playing cards which are being issued and in addition when the outdated playing cards are reissued. In cities resembling Pune the place the metro has began operations just lately, NCMC playing cards are the default transit playing cards being given to passengers.

    Other use circumstances

    A standard card that allows transit funds together with different day-to-day small worth transactions have been an enormous success worldwide. But in India, UPI has develop into the go to choice for small funds and therefore, a typical pay as you go card resembling NCMC might not see large uptake. However, Gandhi argues {that a} contactless card presents the comfort of instantaneous cost.

    “Tap and pay doesn’t require a PIN or different authentication technique, in contrast to in UPI cost. That’s a minor comfort that you just get on utilizing a card,” he stated.

    One main use case of this pay as you go card is that folks can use it to offer their kids a month-to-month allowance and monitor their bills. It will turn out to be useful particularly in circumstances the place kids use public transport for normal commute.

  • New debit bank card guidelines: How clients will profit from this RBI proposal

    In a pioneering transfer, The Reserve Bank of India (RBI) has launched a draft rule that empowers debit, credit score, and pay as you go card customers to pick their most well-liked card community, marking a probably groundbreaking growth worldwide. This rule challenges the prevailing observe the place card community choices are predetermined by agreements between issuers and networks

    RBI draft proposal on debit, bank cards

    According to a draft round by RBI, card issuers can be prohibited from getting into into any association or settlement with card networks that restrain them from availing the companies of different card networks.

    RBI mentioned it’s noticed that preparations current between card networks and card issuers (banks and non-banks) aren’t conducive to the supply of alternative for patrons.

    “Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time,” as per the draft round.

    What is card community portability?

    Card community portability refers back to the means of customers to switch their card accounts from one community to a different. Just like we are able to swap our cell service suppliers whereas conserving the identical cellphone quantity,  card community portability permits cardholders to keep up their current card accounts, balances, and credit score historical past whereas switching to a special cost community. 

    “This flexibility empowers customers to decide on the community that most accurately fits their wants, whether or not it is primarily based on elements like rewards applications, acceptance, or customer support. It enhances competitors amongst bank card networks and offers customers extra management over their monetary selections,” said Amit Gupta, MD, SAG Infotech. 

    The central bank has sought stakeholders’ comments on the draft circular till August 4.

    Ranadurjay Talukdar, Partner and Payments Sector Leader, EY India said that the proposal by RBI is a significant move as it will bring wider choice to consumers, while also ending exclusive issuance arrangements that card networks have with leading issuers. This will provide banks with much-needed encouragement to issue credit cards on UPI, as that is clearly the strongest proposition on the credit side from the Rupay network. On the debit side, the bulk of the issuance volume is currently on Rupay, and most PSUs issue Rupay cards by default. Similarly, on the credit side, several private sector banks, who have an almost exclusive arrangement with either Visa or Mastercard, may now have to expand to offer a Rupay variant,” mentioned Ranadurjay Talukdar.

    RBI card community portability proposal: Banks might face operational challenges

    While this draft holds vital benefits for patrons, granting them decision-making authority and portability, banks might face operational challenges and elevated prices. “They might want to overview current agreements, set up new partnerships, modify their buyer onboarding processes, plan extra coaching, and relook at buyer profiling. The impression on the manufacturing strategy of all banking playing cards is one thing to be evaluated within the coming few months,” said Anadurjay Talukdar.

    Banks have less than 90 days to implement these changes

    Rajalakshmi Raghu, Head – Strategic Relationships, Manipal Technologies Limited said with the proposed implementation date of October 1st, 2023, banks have less than 90 days to implement these comprehensive organizational changes. 

    RBI circular on card network choice: Customers are the real beneficiaries

    Customers are the real beneficiaries considering going forward the card issuer has to provide more than one card network and offer the option to choose at the time of issuance or subsequently. “However, the larger benefit to customers other than innovative offers by different network providers is something to check out in the future,” added Rajalakshmi Raghu. 

    Authorised card networks tie up with banks/ NBFCs for the issuance of playing cards. GraspCard and Visa are among the many hottest networks in India. Other authorised card networks in India embody American Express Banking Corp, Diners Club International, and National Payments Corporation of India – Rupay.

     

     

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    Updated: 08 Jul 2023, 09:56 AM IST

  • ‘Indians will be able to receive money from overseas using UPI’

    NPCI International Payment Ltd (NIPL) not too long ago signed a memorandum of understanding with Western Union to allow real-time checking account payout in India. NIPL is National Payments Corporation of India’s (NPCI) worldwide funds arm that was launched final 12 months with an intention to export NPCI’s indigenously developed funds and tech choices akin to RuPay and UPI to overseas markets. In an interview, Ritesh Shukla, CEO, NIPL, talks in regards to the new providing and devising options for Indians to ship cash abroad. Edited excerpts:

    Can you inform us intimately how it will work?

    Our partnership with Western Union and different gamers is to supply best-in-class cross-border remittance expertise to over 30 million Indians dwelling outdoors India. Currently, this expertise could be very fragmented for customers because it requires incremental work.

    This partnership will enable Western Union customers in addition to non-users to ship cash to India in a simplistic method utilizing Unified Payment Interface (UPI) IDs of the receiver. The sender can merely put the receiver’s UPI ID on the channel enabled by Western Union. Our association with Western Union might be based mostly on the strong and revolutionary infrastructure of UPI that can prolong a superior, quick and safe buyer expertise by enabling customers in India to obtain worldwide cash transfers in actual time into their financial institution accounts. Indian expats or individuals of Indian origin (PIOs) dwelling internationally will be capable of ship cash by means of Western Union and UPI built-in channels to their associates and family members by utilizing UPI ID. All the eligible UPI member banks will get enabled for the service.

    What would be the fees concerned?

    The fees/charges in a cross-border transaction are levied by the remittance service supplier within the overseas market and these fees are sometimes based mostly available on the market dynamics and obtainable channels. Our effort can be to work with Western Union to optimize value, whereas guaranteeing a superior buyer expertise. We might be working to make the costs sustainable and extra reasonably priced in the long term.

    By when is that this service more likely to be operational?

    We are concentrating on to go reside with the service by the second quarter of subsequent 12 months. This service will profit hundreds of thousands of Indian residents to seamlessly obtain cash from abroad.

    Are you additionally taking a look at devising options for purchasers to ship cash abroad?

    We are engaged on an answer below the steerage of the Reserve Bank of India (RBI) to allow Indians to ship cash outdoors India. Our answer will serve a number of use circumstances in retail funds catering to the people who want to ship cash to their household and associates overseas, pay charges in direction of schooling, or some other goal permitted by RBI.

    A latest examine confirmed that Indians paid ₹26,300 crore in overseas alternate charges in 2020. Do you assume the launch of real-time checking account payout service by NIPL will convey down this determine?

    We are conscious of the present challenges current within the cross-border remittance area, together with fees, fragmented consumer expertise, lack of transparency and lengthy turnaround timelines. We are working collaboratively with key stakeholders akin to governments, regulators, fintech firms, service suppliers, exchanges homes and nationwide switches to co-create market-specific options.

    As each geographical area has a selected requirement, the fee options should be tailor-made to cater to the market wants and preferences.

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  • Apple provides UPI, RuPay, internet banking for App Store funds in India: Report

    Apple has added new fee strategies for Indian customers buying purposes and video games on the App Store. These new fee modes embody homegrown United Payments Interface (UPI) and RuPay playing cards, in addition to internet banking.

    The transfer will permit Indian customers to make use of home fee strategies together with the worldwide ones whereas including funds to their Apple’s shops. The stability will also be used to pay for streaming providers like Netflix and Amazon Prime, and Apple’s personal providers like Apple Arcade and Apple One.

    RuPay is an Indian monetary service supplier and fee service system that facilitates real-time digital funds in any respect banks and monetary establishments in India, just like Visa or Mastercard. The platform was launched in 2012.

    On the opposite hand, UPI is a prompt fee community that was launched in 2016. The system has has seen large progress in India, with gamers like PayTM, PhonePe and Google Pay dominating the house. Facebook-owned WhatsApp is all set to enter the phase.

    Android’s Google Play retailer already had UPI, RuPay and internet banking out there as funds modes for buying apps, video games, music, films and extra in India. Now, Apple customers may even be capable of admire the Cupertino tech large’s India-centric function of funds through UPI and extra.

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  • How will customers withdraw cash from cellular wallets at ATMs?

    In the most recent financial coverage, the Reserve Bank of India (RBI) allowed money withdrawal and service provider cost from pay as you go devices (PPIs) similar to cellular wallets. The banking regulator additionally permitted them to turn into a part of RBI’s centralized cost techniques—RTGS (real-time gross settlement) and NEFT (nationwide digital funds switch).

    The developments deliver wallets at par with financial institution accounts. However, the previous don’t have an account quantity. Wallet firms don’t personal ATMs both. So, how does a person withdraw cash from wallets at ATMs or pay at a service provider?

    “Wallets will subject a pay as you go card to their prospects. Using the cardboard, they will withdraw cash at ATMs and swipe the cardboard at service provider shops,” mentioned Praveen Dhabhai, director and chief working officer, Payworld Money, a funds firm that additionally has a cellular pockets.

    Also Read | Why insolvency execs reside on the sting

    In October 2018, RBI had issued pointers on the interoperability of wallets. It allowed wallets to supply cash switch through UPI (unified funds interface) and subject pay as you go playing cards on networks RuPay and Visa. Until now, this was non-compulsory, and there have been few takers. But within the latest financial coverage assessment, the central financial institution has made it obligatory for PPIs to be interoperable.

    According to the notification, interoperability would occur in three phases. First, wallets will be part of UPI. Second, wallets could be allowed to switch cash to a checking account utilizing UPI. In the ultimate section, PPIs will probably be allowed to subject playing cards. Some firms that volunteered have already began issuing playing cards.

    At current, wallets can not use Aadhaar Enabled Payment System (AEPS), which banks provide. That’s as a result of most customers don’t hyperlink their wallets to Aadhaar, in response to Dhabhai.

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