SBI and some other PSU banks launch debit cards based on RuPay payment platform

27 Mar 2012 Evaluate

Country’s public sector lenders, State Bank of India (SBI), Bank of Baroda (BoB), Bank of India (BoI), and Union Bank of India (UBI) have launched debit cards based on the indigenously developed RuPay payment platform on March 26, 2012.

National Payments Corporation of India (NPCI), rival to global payment product companies such as MasterCard and Visa has developed RuPay platform. This RuPay branded debit cards will be accepted at all 91,000 ATMs and over six lakh Point of Sale (POS) terminals in the country. In due course, these cards will be accepted on Internet and also at ATMs/POS terminals abroad.

NPCI aims to partner banks to introduce RuPay-based credit cards by March 2015. Some banks are in the process of testing and certification. Smaller banks which were not in a position to join the card payment system due to high cost of initial participation fee and quarterly minimum processing fee would henceforth be able to participate in RuPay because there are no such fees under RuPay.

Through NPCI's retail payments and settlement platform, since the transaction processing will happen domestically, it will lead to lower cost of clearing and settlement for each transaction. Banks will have to pay almost 40% lower fees to the RuPay scheme as compared to the international schemes. Besides, banks will pay only in rupees instead of foreign currency. 

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Company Name CMP
SBI 811.85
Bank Of Baroda 245.20
Canara Bank 100.60
PNB 101.65
Union Bank Of India 118.10
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