NPCI launches new RuPay credit cards co-branded with Mudra Bank

NPCI is also planning to raise around Rs 100 cr through private placement by end of this year

In a move to increase penetration of RuPay Cards, soon National Payments Corporation of India (NPCI) will roll out a new credit card that will be co-branded with Mudra Bank. It is also in the final stage of discussion with China UnionPay and Japan-based JCB Co., Ltd, which would allow RuPay card holders to use their cards in other parts of the world.

Meanwhile, NPCI is also planning to raise around Rs 100 crore through private placement by end of this year.

RuPay Card is an Indian version of credit/debit card. It is very similar to international cards such as Visa/Master. National Payments Corporation of India (NPCI) initiated the launch of RuPay card in India.

M Balachandran, chairman, NPCI said it has already tied-up with Discover Network Merchants, which is the third largest in US and Europe, and now is in the final stages of talks with JCB (Japan Credit Bureau) and China UnionPay.

He was speaking to reporters after announcing nationwide e-payment literacy workshop on World Literacy Day, .

As per the terms, while their cards will be allowed to used in India, through National Payment Corporation network, and similarly through their network the RuPay cards can be accessed in any part of the World.

"With these tie-ups we have covered almost major parts of the world," said Balachandran.

According to him, in August over Rs 2.10 lakh crore ATM transactions and 555 million transactions were reported of which 80 per cent was done through ATMs, of which 15 per cent were done through RuPay cards.

To increase the user base, the government has asked all the Public Sector Banks to issue their customers a RuPay cards.

Balachandran said that currently NPCI has a capacity to handle 20 million transactions a day, will expand it to 40 million in the next two months and further to 100 million transactions in order to facilitate all the government subsidy transactions. DBT transactions alone are estimated to be around Rs 1,159 crore through 44 schemes in 94 districts across the country.

"Once the state governments also start using our system, we need to have more capacity for which we are getting ready," said Balachandran.

NPCI would invest around Rs 100-150 crore every year as capital expenditure.

Queried whether the Corporation would go for any fund raising, Balachandran said by end of this year the company will raise Rs 100 crore through private placement. This would allow many more banks to come onboard.

Presently, there are ten core promoter banks including State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.