Vaishali Sandip Patil, pratiksha nagar, Mumbai (2026)

25/01/2017

28/11/2016

Dear Friends,
This is the time where Indians are shifting from cash transaction to electronic transaction. Whenever we use a debit card or credit card, do you know that there is a transaction fee associated with it? In most cases you may not be charged but the merchant will be charged. Let us understand what this is for. First of all, no banks or any entities provide any sought of financial networks. It’s all provided by international companies namely VISA, MasterCard, American Express etc. For example, when you get an ATM card with VISA label on that from the issuing bank, the bank provides you the facility to use the visa network. For that the bank has to pay a nominal fee to VISA for every transaction. The bank will get this back from the merchant. So each transaction makes these foreign companies rich.
Now let us see about the RuPay technology introduced by NPCI (National Payment Corporation of India) under the guidelines of RBI (Reserve Bank of India). RuPay is a similar network as VISA, MasterCard etc. This is managed by Reserve Bank of India. All most all public sector and private banks have started to give RuPay based cards to their customers. RuPay cards got a major boost through the Pradhan Mantri Jan Dhan Yojana as RuPay cards were issued to all Jan Dhan accounts.
The advantages are lot. The main advantage is the transaction charges. Charges are very minimal. While Visa / MasterCard / Amex cards creates a transaction fee of about 1.9% of the total amount, RuPay will charge only 0.01%. Secondly, these charges in turn go to the Reserve Bank Itself. Third and the most important - All the transactional data lies in the Indian Servers. The good news is that NPCI is trying to make it international, which means foreign banks will start using RuPay cards.
Next time when you apply or renew a card, opt for RuPay card. Let’s make India better.
Please forward this information to all your friends.