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Source: The post is based on the article “RuPay Domestic Card Scheme Agreement between India and the UAE” published in “PIB” on 6th October 2023
What is the News?
NPCI International Payments Limited(NIPL), a subsidiary of the National Payments Corporation of India (NPCI) has signed an agreement with Al Etihad Payments (AEP), an indirect subsidiary of the Central Bank of UAE.
What is the purpose of the agreement signed between NIPL and UAE?
As per the agreement, NIPL and AEP will work together to build, implement and operationalize UAE’s national Domestic Card Scheme(DCS).
The DCS will aim to facilitate the growth of e-commerce and digital transactions in the UAE, bolster financial inclusion, support UAE’s digitization agenda, reduce the cost of payments and enhance UAE’s competitiveness and position as a global payments leader.
The services that will be offered by NIPL consists of a RuPay stack and value-added services like fraud monitoring services and analytics.NIPL will also assist AEP in formulating the operating regulations for their domestic card scheme.
What is Rupay?
RuPay is an indigenous, highly secure, and widely accepted card payment network in India. RuPay cards have debit, credit, and prepaid propositions.
More than 750 Million RuPay cards are in circulation as of date. RuPay cards make up more than 60% of total cards issued in India, with every second Indian having a RuPay card now.
These cards are issued through the entire banking spectrum, including public sector, private, and small banks.
What is the significance of India’s Digital Public Infrastructure (DPI)?
India’s Digital Public Infrastructure (DPI) framework consisting of digital identity, digital payments and digital data exchange layers has played a crucial role in revolutionizing the payment industry.
This infrastructure has provided nearly every Indian adult with access to banking services, remote authentication through Aadhar, and affordable mobile internet connectivity.
As a result, India has become the world’s third-largest fintech ecosystem, with significant growth in digital transactions and a customer base exceeding 340 million
