What is a RuPay Credit Card and How Does it Work?
The term RuPay combines the terms ‘Rupee’ and ‘Payment’. It is the native payment network of India which adheres to the cashless economy envisioned by the Reserve Bank of India. In 2017, the Reserve Bank of India and the Indian Banks’ Association (IBA) launched the RuPay credit card to offer a safe and secured payment network for purchasing services or goods in India and abroad.
Read on to know how RuPay credit cards work and how they can benefit you.
What Is a RuPay Credit Card?
RuPay credit card is the first Indian payment network that materialises RBI’s aim of creating a cashless economy. It was launched to be the go-to cashless payment method for Indians and curb the usage of foreign payment gateways like Visa and MasterCard.
The intention of developing the RuPay credit card was to offer an indigenous payment network to all the financial institutions of India. Moreover, it acts as an effective alternative to expensive international payment gateways that charge high transaction fees.
Additionally, RuPay cards are embedded with a high-end inbuilt microprocessor circuit which holds basic information about the card owner. More than 700 banks in India issue RuPay credit cards that can be used in various ATMs, POS terminals and e-commerce websites.
How Does a RuPay Credit Card Work?
RuPay credit cards are embedded with EMV chips that ensure secured transactions. The term EMV is an acronym for “Europay, Mastercard, and Visa”, the three companies that created the high-end technology.
At present, more than 1,000 public and private sector banks issue RuPay cards. The cardholder can use the RuPay card to withdraw funds from ATMs, shop online and pay EMIs. It also offers excellent privileges and benefits such as Airport Lounge Access, insurance coverage, cashback schemes, etc.
Also Read: RuPay vs Visa: Know The Difference And Which One To Choose
Types of RuPay Credit Card
RuPay credit cards are available in the following variants:
- RuPay Select Credit Card: This card provides exclusive lifestyle benefits along with complimentary domestic and international lounge access, 24X7 concierge assistance for travel, entertainment and dining, free accident insurance cover worth Rs.10 lakh.
- RuPay Classic Credit Card: This card provides great deals and offers at merchant terminals in India and on online sites. You can also avail extra benefits and privileges by applying for this card.
- Rupay Platinum Credit Card: This variant provides you with attractive benefits from various brands, cashback on dining and utility bill payments, personal accident cover worth up to Rs.2 lakh, on both online and merchant terminals.
These cards enable customers to experience complimentary airport lounge access and multiple concierge services. They offer attractive rewards and benefits from various brands, restaurant chains, etc.
Benefits of RuPay Credit Card
The RuPay credit card bestows its users with the following benefits:
- Secure transactions: RuPay card holders are assured of safe, high-value transactions. As the payment network is based in India, all transaction details and customer information are not transferred outside the country.
- Helps save cost: Rupay credit card is a domestic payment system, so the cost of settlement and transaction clearance is lower than foreign payment gateways.
- Customised for Indians: The card has been tailored as per the requirements of Indian customers. It also helps individuals who have limited access to financial services. Consumers from rural parts of the country can also reap the advantages of RuPay credit cards.
- Faster transactions: As all the transactions made with RuPay credit cards are processed inside the country, customers can avail faster transactions than Visa/MasterCard.
With the implementation of this functional card, customers all over India can reap the benefits of several services that include e-banking services, ATM services, banking transactions etc., bringing product and payment channels in near proximity. Furthermore, RuPay credit card bestows customers with insurance benefits.
How to Apply for a RuPay Credit Card?
Here are the steps that you can follow to apply for a RuPay credit card online:
Step 1: Visit the official website of RuPay.
Step 2: Select the ‘Credit card’ option in the Request Form and enter the name of your preferred bank.
Step 3: Provide basic information like name, email address and contact number.
Step 4: Click on ‘Submit’. You will get an OTP on your registered mobile number.
Step 5: Upon entering the OTP, you will be redirected to the card request form.
Step 6: Fill in the form with the necessary financial details. Finally, click on ‘Apply’ to proceed with the application procedure.
Moreover, you can also apply for a RuPay credit card offline by visiting the nearest branch of your preferred bank. Additionally, one can also apply for RuPay credit cards on the official portals of various banks and financial institutions.
Also Read: 5 Types of Debit Cards And Their Features That You Should Know
Final Word
RuPay card is a functional domestic payment infrastructure that was launched by the National Payment Corporation of India (NPCI). The RuPay payment network is giving stiff competition to renowned international payment networks like Visa, MasterCard etc. Moreover, it has a super-secure system that protects users from financial scams.
FAQs on RuPay Credit Card
Ans: Yes, agriculturalists and farmers can apply for a RuPay credit card. In fact, the Indian Bank RuPay Kisan Credit Card is a custom-made RuPay card for farmers, which allows them to conduct ATM and POS transactions.
Ans: The Card Validation Data (CVD) number is a 3-digit numerical code printed on the back side of the RuPay card. It is a vital number that users use to authenticate cardless transactions. The CVD number of RuPay cards is similar to that of CVV number of Visa or MasterCard.
Ans: Both Visa and RuPay are efficient when it comes to the safety and security of transactions. However, they differ in terms of transaction costs. As the RuPay credit card is a 100% Indian payment system, it charges less operational costs. Additionally, the data processing and verification time required for RuPay transactions are less when compared to Visa.
Ans: You can easily obtain a RuPay Credit card by reaching out to your preferred bank through their official website, customer care portal etc. Furthermore, you can also obtain the card offline by visiting the bank’s branch in person.
Ans: Individuals are required to submit the following documents to get a RuPay credit card:
– Official documents for KYC process
– Address proof
– Income proof
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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