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Rs2600 Crore Incentives for RuPay debit card & UPI approved for FY22-23 by the cabinet

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Abhishek012

TF Pioneer
Rs2600 Crore Incentives for RuPay debit card & UPI approved for FY22-23 by the cabinet:

Incentives worth Rs 2,600 crore have been approved for FY22-23 by the cabinet, as per the reports. The cabinet has said that incentives will be given on use of RuPay debit cards and BHIM UPI. It has likely approved setting up of three co-operative societies under the new Act.​

The Union Cabinet on Wednesday approved promotional incentives for RuPay debit cards and low-value transactions of BHIM (UPI). Incentives worth Rs 2,600 crore have been approved for FY22-23 by the cabinet.

The Cabinet has said that incentives will be given on the use of RuPay debit cards and BHIM UPI.

The Cabinet has also approved the setting up of a national level Multi-state cooperative export society under Multi-State Cooperative Societies (MSCS) Act, 2002. "It'll help in achieving the goal of 'Sahakar Se Samriddhi ' through the inclusive growth model of cooperatives," Union Minister B Yadav said.

India currently has around 350 million online transacting users across e-commerce, shopping, travel and hospitality, and OTT and the number is set to double by 2030, as per a new report.

There are about 40-45 million mature users who spend a considerable share of their wallet online (more than 50 per cent).

At 780 million, India is home to the second-largest Internet user base in the world, which is more than 2 times of the US population.

With the accelerated growth of Internet and smartphone adoption, India is expected to surpass 1 billion Internet users by 2030.

An average Indian spends 7.3 hours per day on their smartphone, one of the highest in the world.

Most Internet users come from product commerce, OTT video platforms, short form, gaming, and OTT audio platforms. Most of the users across e-tailing and gaming come from tier 2+ cities.

"There is a new trend in content consumption where the time spent on user-generated content is 2X of platform-generated content," said the report.

Growth in UPI payments and the comfort of paying online have led to 110 million paid online gamers in India, second only to e-commerce.
 
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Rahul Gupta said:
Wasting our tax money. anyway be ready with your rupay cards boiss.
Click to expand...
Forget about RuPay.

Do you know Metro Rail is loss making project ? But why govt build metro rail in many Indian cities and invest thousands of crores tax money that will never return ?

Reason - Because in the beginning it creates jobs but in the long run in the next 10 to 15 years. Many airports, hotels, buildings, apartments will be built near metro stations. A small town will turn into a big city within next 10-15 years. Govt indirectly get 10x times return + indirectly creates many jobs.

Last time I already shared somewhere in Technofino that how RuPay and UPI are helping digital India and other countries as well.

Infact you dnt know, RuPay now planning to grab all farmers, defence and classic to platinum tier credit cards on RuPay that's why visa/mastercard focus on super premium and ultra premium credit cards (like SBI visa Cashback credit card).

Many Indian college students are doing internship at NPCI and also working with RuPay team. Later these students start their own startups or get job in Visa/Master/Amex/Discover/Diners club card companies.

Card network needs billion dollar investment from govt and banks. Visa/Mastercard was also get incentives by the US government when both were non-profit companies.

RuPay is walking on the same path that Visa/mastercard walked on.
 
Abhishek012 said:
Forget about RuPay.

Do you know Metro Rail is loss making project ? But why govt build metro rail in many Indian cities and invest thousands of crores tax money that will never return ?

Reason - Because in the beginning it creates jobs but in the long run in the next 10 to 15 years. Many airports, hotels, buildings, apartments will be built near metro stations. A small town will turn into a big city within next 10-15 years. Govt indirectly get 10x times return + indirectly creates many jobs.

Last time I already shared somewhere in Technofino that how RuPay and UPI are helping digital India and other countries as well.

Infact you dnt know, RuPay now planning to grab all farmers, defence and classic to platinum tier credit cards on RuPay that's why visa/mastercard focus on super premium and ultra premium credit cards (like SBI visa Cashback credit card).

Many Indian college students are doing internship at NPCI and also working with RuPay team. Later these students start their own startups or get job in Visa/Master/Amex/Discover/Diners club card companies.

Card network needs billion dollar investment from govt and banks. Visa/Mastercard was also get incentives by the US government when both were non-profit companies.

RuPay is walking on the same path that Visa/mastercard walked on.
Click to expand...
Got it captain.
 
I just wonder how much of these funds will be misused or wasted away in dumb ways.

I have no doubts of the potential but I have doubts about the management.

Not long ago (maybe 2-3 months back) huge cashbacks were given when using RuPay overseas, which isn't bad bad... at least is going to someone's pocket although a bit mindlessly.

I guess the point was promoting the use of RuPay outside India and maybe trying to get merchants overseas to adopt it, some of these merchants made a bank out of that RuPay promotion since very limited amount of merchants accepted it so all that crowd chasing that cashback ended up with a few merchants.
My jaw dropped when I saw the cashbacks that were being given, and if I recall correctly they were up to 10k.

And now that I searched for it, in the past was max 16k INR per month, capped at 4k per day.
cardinfo.in

RuPay Travel Tales Offer: 40% cashback on International Spends

RuPay has announced “Travel Tales Offer” on their international debit and credit cards. Under this offer, you can earn a whooping 40% cashback, maximum up to Rs. 16,000 per month per card on foreign spends. This is indeed a jaw-dropping offer and certainly the best offer on international spends...
cardinfo.in cardinfo.in

So seems to be a regular thing, you be the judge whether that is the best use of that money but the banks aren't footing that bill, WE are.
 
Last edited:
gurbina said:
I just wonder how much of these funds will be misused or wasted away in dumb ways.

I have no doubts of the potential but I have doubts about the management.

Not long ago (maybe 2-3 months back) huge cashbacks were given when using RuPay overseas, which isn't bad bad... at least is going to someone's pocket although a bit mindlessly.

I guess the point was promoting the use of RuPay outside India and maybe trying to get merchants overseas to adopt it, some of these merchants made a bank out of that RuPay promotion since very limited amount of merchants accepted it so all that crowd chasing that cashback ended up with a few merchants.
My jaw dropped when I saw the cashbacks that were being given, and if I recall correctly they were up to 10k.

And now that I searched for it, in the past was max 16k INR per month, capped at 4k per day.
cardinfo.in

RuPay Travel Tales Offer: 40% cashback on International Spends

RuPay has announced “Travel Tales Offer” on their international debit and credit cards. Under this offer, you can earn a whooping 40% cashback, maximum up to Rs. 16,000 per month per card on foreign spends. This is indeed a jaw-dropping offer and certainly the best offer on international spends...
cardinfo.in cardinfo.in

So seems to be a regular thing, you be the judge whether that is the best use of that money but the banks aren't footing that bill, WE are.
Click to expand...
Thik hai bhai. Keep giving visa and mastercard all your money and power. Jis din sanction lagenge, naani daadi aur rupay bhi yaad aajayenge.
 
gurbina said:
I just wonder how much of these funds will be misused or wasted away in dumb ways.

I have no doubts of the potential but I have doubts about the management.

Not long ago (maybe 2-3 months back) huge cashbacks were given when using RuPay overseas, which isn't bad bad... at least is going to someone's pocket although a bit mindlessly.

I guess the point was promoting the use of RuPay outside India and maybe trying to get merchants overseas to adopt it, some of these merchants made a bank out of that RuPay promotion since very limited amount of merchants accepted it so all that crowd chasing that cashback ended up with a few merchants.
My jaw dropped when I saw the cashbacks that were being given, and if I recall correctly they were up to 10k.

And now that I searched for it, in the past was max 16k INR per month, capped at 4k per day.
cardinfo.in

RuPay Travel Tales Offer: 40% cashback on International Spends

RuPay has announced “Travel Tales Offer” on their international debit and credit cards. Under this offer, you can earn a whooping 40% cashback, maximum up to Rs. 16,000 per month per card on foreign spends. This is indeed a jaw-dropping offer and certainly the best offer on international spends...
cardinfo.in cardinfo.in

So seems to be a regular thing, you be the judge whether that is the best use of that money but the banks aren't footing that bill, WE are.
Click to expand...
Note - All RuPay card promotional offers are funded by the merchant and card network companies.

Most cases 80% paid by merchants and 20% paid by card network companies.

International offers money paid by Discover and JCB card network companies. For example - currently running 40% Cashback offer in Singpaore, Thailand and Bahrain.

JCB International Credit Card is currently promoting its card in various countries.

Incentives money ain't going to go into any of this RuPay card promotional offers 👆👆

So, remove it from your mind that incentives are used in RuPay card promotional offers.


Where is this incentive amount used ?

Well, govt gives this money to NPCI and every quarter NPCI gives this incentives money to issuer and acquirer banks and banks also distribute this incentives money with payment gateway companies and other technology service providers.

NPCI also release circular every quatertly and distribute this incentives money to banks - https://www.npci.org.in/PDF/npci/ru...-Comm-domestic-transactions-till-March-22.pdf

Note - Visa/mastercard also give huge incentives to banks that's why banks are promoting Visa/mastercard instead of RuPay card.


Last thing, Zero MDR is only for RuPay debit cards but if you use RuPay prepaid cards, RuPay credit cards then MDR charges applied 1% to 3% (depend on merchant categories) and this MDR money is paid by merchants same like Visa/Master/AMEX/Diners club credit cards.

Also note - RuPay Debit Card AutoPay, EMI transactions etc are excluded from Zero MDR and merchants pay MDR on any value added RuPay debit card services.
 
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Abhishek012 said:
Note - All RuPay card promotional offers are funded by the merchant and card network companies.

Most cases 80% paid by merchants and 20% paid by card network companies.

International offers money paid by Discover and JCB card network companies. For example - currently running 40% Cashback offer in Singpaore, Thailand and Bahrain.

JCB International Credit Card is currently promoting its card in various countries.

Incentives money ain't going to go into any of this RuPay card promotional offers 👆👆

So, remove it from your mind that incentives are used in RuPay card promotional offers.


Where is this incentive amount used ?

Well, govt gives this money to NPCI and every quarter NPCI gives this incentives money to issuer and acquirer banks and banks also distribute this incentives money with payment gateway companies and other technology service providers.

NPCI also release circular every quatertly and distribute this incentives money to banks - https://www.npci.org.in/PDF/npci/ru...-Comm-domestic-transactions-till-March-22.pdf

Note - Visa/mastercard also give huge incentives to banks that's why banks are promoting Visa/mastercard instead of RuPay card.


Last thing, Zero MDR is only for RuPay debit cards but if you use RuPay prepaid cards, RuPay credit cards then MDR charges applied 1% to 3% (depend on merchant categories) and this MDR money is paid by merchants same like Visa/Master/AMEX/Diners club credit cards.

Also note - RuPay Debit Card AutoPay, EMI transactions etc are excluded from Zero MDR and merchants pay MDR on any value added RuPay debit card services.
Click to expand...
Great info, however I'm confused.

What is RuPay if not a payment network?
As per my understanding they just have a partnership with JCB/Discover to enable payments on their network and have higher reach but RuPay is a card payment network on its own meaning they are funding this on their own. There's no point for JCB/Discover to provide such enormous cashback when it isn't their card (and I don't think they have anything like this), either it's a mutual agreement where they accept each other's cards and/or they get part of the transactional fees or something in return.

I found this

Card reciprocal agreements - Wikipedia

en.m.wikipedia.org en.m.wikipedia.org
In order to expand the acceptance of their credit and debit cards, many networks, such as Discover, JCB, UnionPay, BC Card, RuPay and TROY create alliances with other networks.
Click to expand...
Then down below
Screenshot_20230113_035429_Firefox.jpg

As for the offers and as far as I understand that cashback is funded by the card network in this case RuPay and their owners as it is not targeted or partnered with a merchant ie Visa with BMS where BMS is getting lots of exposure and a lot of customers thanks to Visa, in that case it makes sense if BMS shares or foots the bill altogether.

It does makes sense if the incentive goes toward banks for promote more offerings on RuPay but still I'm puzzled from where the money for those absurd cashbacks are coming from. It is very high amounts and very extremely aggressive strategy which I can't understand. Never seen such things in other card networks except for partnerships like Amex and Luxury Tatacliq but Amex drives high spending individuals towards them and baeically promotes/advertises spending on them to their cardholders so as you mentioned it makes sense if Luxury Tatacliq funds that.

It would be great to have some more info on how these credit card networks work.
 
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Keep comparing rupay to established card networks that have been in the game forever. I don't think it's difficult to understand that a nascent card networks needs help to grow.
10 saal ke bache ke padhai likhayi ke liye paise kharchte ho ya bolte ho ki uske papa toh itni badi shakshiyat hai ki business khud unke ghar aata hai toh bache pe kya paise waste karne.
 
gurbina said:
Great info, however I'm confused.

What is RuPay if not a payment network?
As per my understanding they just have a partnership with JCB/Discover to enable payments on their network and have higher reach but RuPay is a card payment network on its own meaning they are funding this on their own. There's no point for JCB/Discover to provide such enormous cashback when it isn't their card (and I don't think they have anything like this), either it's a mutual agreement where they accept each other's cards and/or they get part of the transactional fees or something in return.

I found this

Card reciprocal agreements - Wikipedia

en.m.wikipedia.org en.m.wikipedia.org

Then down below
View attachment 9027

As for the offers and as far as I understand that cashback is funded by the card network in this case RuPay and their owners as it is not targeted or partnered with a merchant ie Visa with BMS where BMS is getting lots of exposure and a lot of customers thanks to Visa, in that case it makes sense if BMS shares or foots the bill altogether.

It does makes sense if the incentive goes toward banks for promote more offerings on RuPay but still I'm puzzled from where the money for those absurd cashbacks are coming from. It is very high amounts and very extremely aggressive strategy which I can't understand. Never seen such things in other card networks except for partnerships like Amex and Luxury Tatacliq but Amex drives high spending individuals towards them and baeically promotes/advertises spending on them to their cardholders so as you mentioned it makes sense if Luxury Tatacliq funds that.

It would be great to have some more info on how these credit card networks work.
Click to expand...
RuPay card issue 2 types of debit/credit cards -

1) RuPay Domestic cards (RuPay card number start with 508, 60, 81, 82 BIN numbers are domestic cards).

2) RuPay Global cards {Card number start with 65 (Discover/Diners club variant) and 35 (JCB Variant)}.

Note - RuPay Domestic cards also accept in other countries, so dnt get confused with the name. RuPay domestic network is currently available in UAE, Bahrain, Nepal, Singapore, Bhutan and few other countries.

RuPay Global cards are partially owned by Discover/Diners club/JCB card network because these cards have Discover's D-pass EMV chip or JCB card EMV chip.

Discover and JCB charged an annual fee from RuPay to issue RuPay Global cards with their BIN numbers

But if we talk about RuPay Domestic Cards, then it is 100% indigenously develop RuPay card and this card has RuPay's own EMV chip.

In short, RuPay Global cards are dual network cards. Domestic transaction - These cards use RuPay network and International transaction 99.99% times these cards use Discover/Diners club/JCB card network.

Now here some Interesting fact -

Its possible your RuPay global cards with Discover and JCB card network will not accept in some merchants in UAE, Bahrain, Nepal, Singapore, Bhutan but your RuPay domestic cards (those cards written "valid only in India") will accept all merchants in UAE, Bahrain, Nepal, Singapore, Bhutan.

Reason - Outside India, your RuPay global cards are Discover and JCB card, If any merchant is not accept Discover and JCB network card then your transaction will get declined but if same merchant accept RuPay cards then your RuPay domestic cards will work.

Here few examples -

Read this news - "Currently, all variants of RuPay card is accepted in Nepal SBI Bank PoS machines whereas global variant of RuPay is accepted in Nepal SBI Bank ATM terminals".

Source - https://thehimalayantimes.com/business/use-of-rupay-card-in-nepal-sbi-atms-pos

Since, Discover and JCB dnt have any partnership with Nepal SBI Bank that's why global variant of RuPay card is not accepted (ofcourse, its also possible RuPay Global variant will accept in future after negotiate with Discover and JCB card network, if they agree).

Another, example here Singapore's NETS - https://www.nets.com.sg/faqs/business/accept-foreign-cards-and-payments/

Currently, only 5 Indian bank issuing RuPay domestic cards are accept in Singapore merchants.

NPCI officially told many times, RuPay domestic cards will accept in Singapore.

sdrer.jpg


So, back to the main point. You said - "There's no point for JCB/Discover to provide such enormous cashback when it isn't their card."

Well, its their card. These cards are owned by or you can say partially owned by Discover/Diners club/JCB card.

Ya also possible few percentage cashback amount also paid by RuPay but recently i saw JCB International Card is currently promoting its card in various countries not only in India.
 
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gurbina said:
That's an amazing post with awesome information! It's pretty interesting getting to know all these little details that most people aren't aware of!
Click to expand...
Yes and once RuPay expands its network globally. You will see RuPay will start discontinue Discover/Diners club/JCB cards and will launch RuPay's own domestic credit/debit cards with "International Card" written on the front/back side of the card.

For example - In year 2002, China launch its own UnionPay debit/credit card and also co-branded with Visa/mastercard for International acceptance, after 14 years (year 2016) China's UnionPay International card accepted almost all major countries and China's UnionPay card decide to discontinue to issue cobranded UnionPay-Visa/mastercards.

Source - https://www.pymnts.com/news/international/2016/china-hits-the-pause-button-on-dual-currency-cards/

RuPay will also doing the same in future. We need to wait for RuPay's global expansion.
 
Abhishek012 said:
Rs2600 Crore Incentives for RuPay debit card & UPI approved for FY22-23 by the cabinet:

Incentives worth Rs 2,600 crore have been approved for FY22-23 by the cabinet, as per the reports. The cabinet has said that incentives will be given on use of RuPay debit cards and BHIM UPI. It has likely approved setting up of three co-operative societies under the new Act.​

The Union Cabinet on Wednesday approved promotional incentives for RuPay debit cards and low-value transactions of BHIM (UPI). Incentives worth Rs 2,600 crore have been approved for FY22-23 by the cabinet.

The Cabinet has said that incentives will be given on the use of RuPay debit cards and BHIM UPI.

The Cabinet has also approved the setting up of a national level Multi-state cooperative export society under Multi-State Cooperative Societies (MSCS) Act, 2002. "It'll help in achieving the goal of 'Sahakar Se Samriddhi ' through the inclusive growth model of cooperatives," Union Minister B Yadav said.

India currently has around 350 million online transacting users across e-commerce, shopping, travel and hospitality, and OTT and the number is set to double by 2030, as per a new report.

There are about 40-45 million mature users who spend a considerable share of their wallet online (more than 50 per cent).

At 780 million, India is home to the second-largest Internet user base in the world, which is more than 2 times of the US population.

With the accelerated growth of Internet and smartphone adoption, India is expected to surpass 1 billion Internet users by 2030.

An average Indian spends 7.3 hours per day on their smartphone, one of the highest in the world.

Most Internet users come from product commerce, OTT video platforms, short form, gaming, and OTT audio platforms. Most of the users across e-tailing and gaming come from tier 2+ cities.

"There is a new trend in content consumption where the time spent on user-generated content is 2X of platform-generated content," said the report.

Growth in UPI payments and the comfort of paying online have led to 110 million paid online gamers in India, second only to e-commerce.
Click to expand...
I'm ready to ditch visa or MasterCard, if government promises 5% unlimited cashback atleast for 5years, without any criteria.
 
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