Mumbai: In order to expand payment options for Indians travelling abroad, the Reserve Bank of India on Thursday decided to allow issuance of RuPay Prepaid Forex cards by banks in India for use at ATMs, PoS machines, and online merchants overseas.
The announcement was made by Reserve Bank Governor Shaktikanta Das while unveiling the second bi-monthly monetary policy of this fiscal. According to Das, these measures will expand the reach and acceptance of RuPay cards globally. The issuance of RuPay Debit, Credit, and Prepaid Cards will also be enabled for foreign jurisdictions, making them usable internationally, including in India.
The Reserve Bank of India’s decision comes in view of the growing international acceptance of RuPay Debit and Credit cards issued by Indian banks through bilateral arrangements with international partners and co-badging arrangements with international card schemes.
In addition to this, Governor Das also highlighted the significance of the Bharat Bill Payment System (BBPS), an ‘anytime anywhere’ bill payments platform that has been operational since August 2017. He mentioned that BBPS currently serves over 20,500 billers and processes more than 9.8 crore transactions every month. In December 2022, the scope of BBPS was expanded to include all categories of payments and collections, both recurring and non-recurring. This expansion also facilitated in-bound cross-border bill payments.
To enhance the efficiency of the system and encourage greater participation, the Reserve Bank of India plans to streamline the process flow of transactions and revise the membership criteria for onboarding operating units in BBPS.
Regarding e-RUPI digital vouchers, Governor Das proposed an expansion to its scope and reach. The proposal includes allowing non-bank prepaid payment instruments (PPI) issuers to issue e-RUPI vouchers, enabling individuals to receive e-RUPI vouchers on their behalf, and simplifying the process of issuance and redemption. These measures aim to make the benefits of e-RUPI digital vouchers accessible to a wider user base and further deepen the penetration of digital payments in the country.
The e-RUPI prepaid digital voucher, developed by the National Payments Corporation of India (NPCI), was launched in August 2021 by Prime Minister Narendra Modi. It serves as a person-specific and purpose-specific cashless voucher with a cap of ₹10,000 and a single-time redemption facility. In a significant move last year, the RBI increased the cap on e-RUPI prepaid digital vouchers to ₹1 lakh and allowed multiple usage, facilitating the digital delivery of various government schemes to beneficiaries.
e-RUPI functions as a digital voucher that beneficiaries receive on their phones in the form of an SMS or QR code. It offers a contactless and cashless mode of payment, allowing users to redeem the voucher without the need for a card, digital payments app, or internet banking access.
In conclusion, the Reserve Bank of India’s decision to allow the issuance of RuPay Prepaid Forex cards and enable RuPay Debit, Credit, and Prepaid Cards for use in foreign jurisdictions is a significant step towards expanding payment options for Indians travelling abroad. These measures aim to enhance the reach and acceptance of RuPay cards globally.
Source of this News: NDTV
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