Maldives' Minister of Economic Development and Trade Mohamed Saeed on May 23, 2024, announced that the country is moving ahead with plans to introduce India's National Payments Corporation of India (NPCI) developed RuPay card network service. Though a launch date has not been announced, this move is poised to strengthen the Maldivian currency Rufiyaa and enhance Maldive's economic ties with India, the minister said.
"We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees," the Maldivian minister said, adding the move will bolster "Maldivian Rufiyaa".
What Is RuPay?
RuPay, developed by the Reserve Bank of India and promoted by the National Payments Corporation of India (NPCI), is India's first global card payment network. Over recent times, several banks abroad and payment companies have partnered with NPCI to integrate RuPay services in their countries coupled with UPI.
The Reserve Bank of India (RBI) has mandated that by September 2024, all card issuers and banks must allow customers to choose from multiple card networks at the time of issue, or the option to switch networks during their card renewal period.
RuPay network also issues credit and debit cards from Government scheme cards, RuPay Classic, Platinum, and Select variants for all income categories. As with other cards, RuPay cards also offer airport lounge access, personal accident insurance, merchant offers, cashback schemes etc, but there are unique benefits to Rupay.
Benefits of Using RuPay
Benefits to Travellers: RuPay cards have already been accepted in Bhutan, Nepal, Mauritius, Singapore, and the UAE, and are now to be extended to Maldives. This means Indian travellers can use Rupay cards on ATMs and POS terminals in these foreign countries.
Exclusive Offers: The RuPay network keeps announcing exclusive discounts and cashback offers to its users. Recently on May 15, 2024, it announced a limited-time special cashback offer scheme, for RuPay Credit and Debit cardholders where they can get a 25 per cent cashback on point-of-sale purchases made at merchants accepting cards on either Discover Network or Diners Club International Network within Canada, Japan, Spain, Switzerland, United Arab Emirates, United Kingdom and United States. The offer is ongoing till July 31, 2024.
UPI Integration & Lower Transaction Fees: RuPay is the only network in India that allows UPI to be used on its Rupay credit cards. RBI had allowed Rupay to be the only payment service system since 2022 to use UPI applications on credit card payments. UPI payments exempt merchants from paying processing fees, unlike traditional card payments, reducing costs for them and enhancing flexibility for customers as more merchants will allow them. RuPay, as an indigenously developed network, also offers lower transaction fees compared to international card networks.
Technological Innovations & NCMC Integration: Similar to other networks, Rupay has embedded advanced solutions like tokenisation and mobile-based POS, enabling users to tokenise their mobile phones or smart watches by digitising cards on the IoS devices. Then they can simply tap their watch or phone on the POS terminal to make payments. Further, the National Common Mobility Card (NCMC) card run by the Indian government is also powered by the RuPay platform, allowing users to make payments on buses, trains, toll payments, and parking fees, with just a tap of their phone.
