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
- 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.
- 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.
Previous Year Question
Q.1) With reference to digital payments, consider the following statements: (2018)
- BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
- 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 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2