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RuPay Debit Cards and BHIM UPI

  • IASbaba
  • January 12, 2023
  • 0
Economics
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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

 

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