Why is the Indian government promoting RuPay cards?

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bobby_123

RuPay is India's own domestic card and payment gateway system, developed by the National Payments Corporation of India (NPCI). 🇮🇳💳

With established global networks like Visa, MasterCard, and American Express already having a significant market share in India, some might wonder: Why do we need a separate, homegrown payment system like RuPay? 🤔 @abhishek012

What are the advantages of having a domestic payment network when international options are already functioning effectively?


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Top Comments
Benevolent Benevolent
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Self reliance.

New opportunities for fintech.

New channels of income for government.

New innovations in tech like Rupay CC over UPI etc.



Remember during some war, US denied its GPS to us. Similarly we don't want some us tech companies to set us back. The same with cryogenic tech too and vaccines too.


Just because some tech is already there we should stop innovating ?


Paradise biriyani is best doesn't mean we stop cooking biryani at home and always keep buying from them.

Finance Mentor Finance Mentor
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  1. Main Motive: Strengthening INR (Indian Rupees)

Our main goal is to strengthen the Indian Rupee. RuPay cards and UPI utilize INR in global payments, meaning trades happen in local currency. This approach helps reduce inflation rates in the future, and the benefits are limitless.

A good example of this can be seen with China’s UnionPay card, which shows how Chinese currency dominance is steadily increasing. Similarly, everyone is aware of the dominance of USA govt-backed Visa and Mastercard.

2. Innovation

    Jo ki @PascalJi jaise India me aur bhi log hai jo easily samjh nahi pa rahe hai

    NPCI has laid the foundation for every technology in India. Almost every technology seen before was patented by the USA. We had nothing; we started from zero. NPCI had to start everything from scratch and ensure that nothing was copied.

    That's why when RuPay's 'Tap & Pay' feature launched on Google Pay, the NPCI official became very emotional. It was the result of five years of hard work.

    NPCI's innovations are also being sold to other countries.

    Technologies like RuPay, UPI, NCMC (National Common Mobility Card), and more have already been purchased by some countries. UAE’s domestic Jaywan card is based on our RuPay technology. UPI technology has already been bought by a few countries, which will start working on it soon. We also plan to sell our NCMC technology to small Asian and African countries.

    This is not just about earning money; it’s about increasing India’s soft power worldwide.

    3. US sanctioned -

    Always remember, after China, India is the biggest enemy of the USA.

    @baludesi has already explained few things.

    The USA controls the entire world through Visa, Mastercard and SWIFT.

    That’s why we should use of our own RuPay, UPI, SFMS and INFINET.

    Deal Lieutenant Deal Lieutenant
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    Every time an Indian swipes a VISA, Mastercard, American Express, Discover (Diners Club), a percentage of what you pay goes to those 4 US headquartered companies. In other words, a transaction that should be purely between an Indian buyer and seller is "taxed" by a US entity! If that sounds eerily familiar then you aren't wrong. It is indeed the modern avatar of the British East India Company but without the use of direct force and with lesser margins so as to not give rise of revolts / uprisings.

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    Benevolent Benevolent
    Link Copied

    Self reliance.

    New opportunities for fintech.

    New channels of income for government.

    New innovations in tech like Rupay CC over UPI etc.



    Remember during some war, US denied its GPS to us. Similarly we don't want some us tech companies to set us back. The same with cryogenic tech too and vaccines too.


    Just because some tech is already there we should stop innovating ?


    Paradise biriyani is best doesn't mean we stop cooking biryani at home and always keep buying from them.

    Flame Flame
    Link Copied
    Brilliant answer. West and India are never going to be friend. Under those white skins devil lurks. They just pretend that we are friend.

    If there will be any war then only these swadeshi things will come handy. 


    Finance Mentor Finance Mentor
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    1. Main Motive: Strengthening INR (Indian Rupees)

    Our main goal is to strengthen the Indian Rupee. RuPay cards and UPI utilize INR in global payments, meaning trades happen in local currency. This approach helps reduce inflation rates in the future, and the benefits are limitless.

    A good example of this can be seen with China’s UnionPay card, which shows how Chinese currency dominance is steadily increasing. Similarly, everyone is aware of the dominance of USA govt-backed Visa and Mastercard.

    2. Innovation

      Jo ki @PascalJi jaise India me aur bhi log hai jo easily samjh nahi pa rahe hai

      NPCI has laid the foundation for every technology in India. Almost every technology seen before was patented by the USA. We had nothing; we started from zero. NPCI had to start everything from scratch and ensure that nothing was copied.

      That's why when RuPay's 'Tap & Pay' feature launched on Google Pay, the NPCI official became very emotional. It was the result of five years of hard work.

      NPCI's innovations are also being sold to other countries.

      Technologies like RuPay, UPI, NCMC (National Common Mobility Card), and more have already been purchased by some countries. UAE’s domestic Jaywan card is based on our RuPay technology. UPI technology has already been bought by a few countries, which will start working on it soon. We also plan to sell our NCMC technology to small Asian and African countries.

      This is not just about earning money; it’s about increasing India’s soft power worldwide.

      3. US sanctioned -

      Always remember, after China, India is the biggest enemy of the USA.

      @baludesi has already explained few things.

      The USA controls the entire world through Visa, Mastercard and SWIFT.

      That’s why we should use of our own RuPay, UPI, SFMS and INFINET.

      Benevolent Benevolent
      Link Copied
      Mastercard and visa literally begging Indian govt. to stop promoting Rupay is the day no one ever imagined. The way upi and rupay ccs, revolutionized fintech startups is amazing. My company's shares on etrade (now morgan stanley) looks clunk and slow compared to our fintech sites.
      Deal Cadet Deal Cadet
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      is this even a genuine question?

      Tomorrow if US govt tells VISA/Mastercard to stop all ATM/DC/CC of Indians, they will if India is in war with a US ally. 

      With RuPay, the full control is with Indians.

      Comrade Comrade
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      Merchants ko bhi to samzao ye bat koi..sunate hi nahi

      Finance Mentor Finance Mentor
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      @baludesi Ya.

      4. 4th point i will add Fintech companies -

      After NPCI, RuPay, and UPI, there has been a significant boom in fintech companies.

      Many people are not aware of this. Even if a fintech company is issuing Visa cards, they are using NPCI’s entire tech stack on the backend.

      In recent years, you must have noticed that all Wallet cards, Gift cards, NCMC cards and RuPay On-The-Go Wearable devices being launched are primarily RuPay prepaid cards.

      And in co-branded credit cards, this is just the beginning. In the next few years, you will see many more fintech companies issuing credit cards. In fact, some are already here, exclusively issuing RuPay credit cards.

      Since NPCI is an Indian entity, it provides better support.

      This doesn’t mean that Visa cards are bad or unhelpful. For small fintech companies, Visa cards are expensive.

      5. Banks -

      Before RuPay Card, only 50 banks in India were issuing Visa/Mastercard debit cards.

      Today, approx 1,250+ banks issue debit cards on the RuPay network.

      Netizens might not understand how big of an impact this is -

      70% of our country’s population lives in villages, and 90% belong to the poor and lower middle class who cannot afford to open accounts with banks that offer Visa/Mastercard debit cards.

      RuPay card has proved to be a boon for all those banks and people.

      In recent years, there are many small banks that only existed in one city, but today, due to RuPay cards, UPI, and the Digital India initiative, people from every state in India are opening bank accounts with these banks.

      Extra Info -

      a) 
      Some people are under the misconception that the govt and NPCI are creating a monopoly with NCMC by issuing RuPay cards, but that’s not true—NCMC is interoperable, and Visa and Mastercard can issue cards as well.

      However, NCMC transactions are typically under 100 INR.

      The govt had decided on NCMC back in 2006, but Visa and Mastercard didn’t see profitability in it, which is why it never took off.

      And remember, Recently Visa and Mastercard have tried their own NCMC, but they have failed because they genuinely have no interest in India’s NCMC business.

      b) RuPay Jan Dhan Yojana cards and other govt scheme cards: People often mistakenly believe that the govt is favoring RuPay.

      However, the govt initially approached Visa for the Jan Dhan Yojana card, but the deal didn’t succeed. Whether it was because Visa Card charged more or for some other reason, it was never made clear.

      But the truth is that Visa Card has no interest in India’s villagers and low-income groups. These people use ATMs more frequently and do fewer digital transactions, which doesn't align with Visa’s profit model when it comes to govt scheme cards.

      Don't forget, we are talking about 90% of India's population, along with 90% of Indian banks, which rely solely on NPCI, RuPay, and UPI.

      Deal Lieutenant Deal Lieutenant
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      Every time an Indian swipes a VISA, Mastercard, American Express, Discover (Diners Club), a percentage of what you pay goes to those 4 US headquartered companies. In other words, a transaction that should be purely between an Indian buyer and seller is "taxed" by a US entity! If that sounds eerily familiar then you aren't wrong. It is indeed the modern avatar of the British East India Company but without the use of direct force and with lesser margins so as to not give rise of revolts / uprisings.

      Deal Baba Deal Baba
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      💲💲💲💲💲😇😇😇🙈🙈🙉🙉🙊🙊

      👺👺❌❌❌❌

      Finance Mentor Finance Mentor
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      Visa and mastercard are foreign companies headquartered in the US.
      Apart from the charges that ultimately go to them, there is also the matter of consumer transaction data.

      Every transaction is getting recorded in their servers. That alone is unsettling.
      Then there is the matter of duopoly. These companies have long enjoyed the fruits being the majority card processors in the country.

      In the event of these companies winding up business in the country for whatever reason, there will be major disruption in the digital payment space.
      That would be a major blow for the country.

      BUT RUPAY is yet to deserve the attention that is being showered on it.

      After all these years it's still all show and no tangible results. The govt should have put the effort into making rupay a better processor than promoting it like somekind of a cool drink.

      No one in their right mind would keep rupay cards as their primary debit or credit card fearing the transaction failure. That's what govt should have focused on, making a better network, not some showpiece.

      A show piece that very few people would care about if not for the perks and questionable corporate benefits given to rupay(credit on upi).



      Deal Cadet Deal Cadet
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      Simple to avoid Visa Master monopoly. Modi is also planning for India own OS for android.

      Deal Newbie Deal Newbie
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      I am sorry to say and saddens the question betrays terrible ignorance of India's youth.

      Deal Cadet Deal Cadet
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      Most are aware only OP is ignorant
      replyuser
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