RuPay poised for worldwide expansion in the near future
Experts anticipate that RBI’s recent initiatives will broaden the accessibility of e-RUPI vouchers and RuPay currency cards, while also extending the range of concession settlement options for NBFCs and co-operative banks.
The recent decision by the Reserve Bank of India (RBI) to authorize Indian banks to issue RuPay prepaid forex cards for international use is a noteworthy development in enhancing seamless cross-border transactions, according to experts. Additionally, the RBI has unveiled plans to increase the accessibility of e-RUPI vouchers and RuPay currency cards, along with broadening the scope of concession settlement options for NBFCs and co-operative banks. To expand the potential uses of e-RUPI, the central bank has granted permission to both banking institutions and non-bank financial institutions (NBFCs) to issue these vouchers for both corporate and retail purposes.
Ashish Aggarwal, Managing Director of Acube Ventures Global, shared with Bizz Buzz, “In the future, RuPay cards will be designed for international use. Currently, they are only available for domestic transactions and in countries with which India has a mutually beneficial agreement.” The RBI has introduced new measures to extend the issuance of e-RUPI vouchers, now allowing NBFCs to issue them. Currently, banks issue purpose-specific e-RUPI digital vouchers on behalf of governments and corporations. This decision by the RBI aims to widen the accessibility and coverage of e-RUPI vouchers, further advancing the adoption of digital payments in the country, he added
Amit Gupta, MD of SAG Infotech, emphasized, “These steps will empower non-bank prepaid payment instrument (PPI) issuers to provide e-RUPI vouchers, streamlining both issuance and redemption procedures, and enabling individuals to issue vouchers.” Launched in August 2021, e-RUPI leverages the Unified Payments Interface (UPI) system operated by the National Payments Corporation of India (NPCI). Furthermore, the RBI has granted authorization for banks in India to issue RuPay Prepaid Forex cards, facilitating their use at international ATMs, Point of Sale (PoS) machines, and online merchants.
Gupta highlighted, “This step broadens the array of payment choices for Indians journeying overseas and amplifies the recognition and utilization of RuPay cards worldwide.” Akash Sinha, Co-Founder & CEO of Cashfree Payments, remarked, “This advancement elevates convenience, cost-effectiveness, and security, enabling individuals and businesses to seamlessly engage in cross-border transactions. The widespread acceptance of RuPay cards on the international stage aligns with the Government of India’s vision of a digital economy, fostering digital payments, financial inclusivity, and overall economic progress.
India has recently placed significant emphasis on cross-border payments, recognizing their pivotal importance. The acceptance of RuPay cards by Bhutan, Singapore, Nepal, and the UAE has reinforced the drive for more cross-border payment partnerships and extended the global reach of UPI and RuPay. This development has also instilled trust for future collaborations, facilitating seamless cross-border transactions and advancing financial inclusivity on a global scale. Moreover, the issuance of e-Rupee vouchers on behalf of individuals broadens the market potential and heightens customer engagement. Additionally, the widespread adoption of e-Rupee vouchers propels digital transactions, enhancing the efficiency and swiftness of payments, ultimately bolstering overall operational efficiency and financial management for businesses in India, as perceived by experts.
