RuPay set to gain global traction in coming days

Mumbai The Reserve Bank of India’s (RBI) recent announcement to allow Indian banks to issue RuPay prepaid forex cards for overseas usage is a significant advancement in facilitating smooth cross-border transactions, say experts.

The RBI recently announced plans to expand the availability of e-RUPI vouchers and RuPay currency cards, as well as expand the scope of concession settlement available to NBFCs and co-operative banks. For the purpose of broadening the potential applications of e-RUPI, the central bank has permitted banking institutions as well as non-bank financial institutions (NBFCs) to issue such vouchers for corporate and retail purposes.

Talking to Bizz Buzz, Ashish Aggarwal, Managing Director, Acube Ventures Global, said: “In the future, RuPay cards are going to be created for use overseas. At the moment, they are currently only available for domestic usage and in nations with whom India has a mutually beneficial agreement.”

The RBI has announced new measures to expand the issuance of e-RUPI vouchers, allowing NBFCs to issue them. Currently, purpose-specific e-RUPI digital vouchers are issued by banks on behalf of governments and corporations. The RBI’s decision aims to broaden the reach and accessibility of e-RUPI vouchers, deepening the penetration of digital payments in the country, he added.

Amit Gupta, MD, SAG Infotech, said: “These measures will enable non-bank prepaid payment instruments (PPI) issuers to issue e-RUPI vouchers, simplify the issuance and redemption processes, and allow individuals to issue vouchers.”

Launched in August 2021, e-RUPI operates on Unified Payments Interface (UPI) system of the National Payments Corporation of India (NPCI). In addition, RBI has authorized banks in India to issue RuPay Prepaid Forex cards for use at overseas ATMs, PoS machines, and online merchants.

According to Gupta, “this move expands payment options for Indians traveling abroad and enhances the reach and acceptance of RuPay cards globally.”

Akash Sinha, Co-Founder & CEO, Cashfree Payments, commented: “This development enhances convenience, cost efficiency, and security, empowering individuals and businesses to engage in cross-border payments with ease. The widespread adoption of RuPay cards abroad supports the Government of India’s vision of a digital economy, promoting digital payments, financial inclusion, and overall economic growth.”

India has placed significant emphasis on cross-border payments in recent times, recognizing their crucial importance. The acceptance of RuPay cards by Bhutan, Singapore, Nepal, and the UAE strengthened the push for more cross-border payment partnerships and expanded the global reach of UPI and RuPay. It also built trust for further collaborations, fostering seamless cross-border transactions and promoting financial inclusivity globally.

Further, the issuance of e-Rupee vouchers on behalf of individuals expands the market potential and increases customer engagement. Additionally, the widespread adoption of e-Rupee vouchers promotes digital transactions, boosting the efficiency and speed of payments, thereby enhancing the overall operational efficiency and financial management for businesses in India, the experts felt.

Aiming For Global Forex Pie

l RBI’s new measures to expand issuance of e-RUPI vouchers

l Allows non-bank cos to issue them

l Authorized banks in India to issue RuPay prepaid forex cards for use at overseas ATMs

l RBI’s decision aims to broaden reach and accessibility of e-RUPI vouchers

"In the future, RuPay cards are going to be created for overseas use. Now, they are currently only available for domestic usage and in nations with whom India has a mutually beneficial agreement"

- Ashish Aggarwal, Managing Director, Acube Ventures Global, tells Bizz Buzz