RuPay Debit Cards and BHIM UPI

In News: Union Cabinet gave its nod to the incentive scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions.

About the scheme:

• The scheme has a financial outlay of INR 2600 crore.
• The decision will help in building a robust digital payment system.

RuPay Debit Cards:

• It is the first of its kind global card payment network of India
• It was conceived and launched by the National Payments Corporation of India (NPCI) in 2012.
• The name, derived from ‘Rupee and Payment’, emphasises India’s very own initiative for Card payments.
• It has wide acceptance at ATMs, POS devices and e-commerce websites across India.
• It is a highly secure network that protects against anti-phishing.
• It fulfils RBI’s vision of initiating a ‘cashless economy’ by establishing a domestic, open and multilateral system of payments.
• It facilitates electronic payment at all Indian banks and financial institutions.
• NPCI maintains ties with Discover Financial, JCB to enable RuPay card scheme to gain international acceptance
• RuPay cards are issued by more than 1100 banks including public sector banks, private, regional banks and cooperatives.
• Its 10 core promoter banks include SBI, PNB, Canara bank, BOB, Union Bank of India, Bank of India, ICICI Bank, HDFC bank, Citibank and HSBC

BHIM UPI:

• Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions using Unified Payments Interface (UPI).
• Pioneered and developed by National Payments Corporation of India (NPCI), BHIM has been launched in 2016 to bring in Financial Inclusion to the nation and a digitally empowered society.
• One can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app.
• One can also request money through the app from a UPI ID.

National Payments Corporation of India (NPCI)

• NPCI is an umbrella organisation for operating retail payments and settlement systems in India.
• It is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment and Settlement Infrastructure in India.
• Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013)
• It aims to provide infrastructure to entire banking system in India for physical as well as electronic payment and settlement systems.
• The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
• Initiatives

• With Immediate Payment Service (IMPS)
• National Financial Switch (NFS)
• Cheque Truncation System (CTS)
• Unified Payments Interface (UPI) and Bharat Interface for Money (BHIM)
• Bharat Bill Payment System (BBPS)

• Initiatives in pipeline

• RuPay Credit Card
• National Common Mobility Card
• Tap & Go and Electronic Toll Collection.

Source: Newsonair

Previous Year Question

Q.1) With reference to digital payments, consider the following statements: (2018)

1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2