The Reserve Bank of India (RBI) on June 8, 2023 gave the go-ahead to banks in India to issue RuPay Prepaid Forex cards for use at ATMs, point of sale (PoS) machines, and online merchants overseas.
The move, announced during the RBI Monetary Policy Committee (MPC) meeting aims to increase the scope of accessibility and acceptance of RuPay cards worldwide. This decision also aligns with the RBI's Payments Vision Document 2025, which emphasises expanding the global outreach of RuPay cards and the Unified Payments Interface (UPI).
Increased Accessibility For RuPay Cards Globally
RuPay debit and credit cards issued by Indian banks have already gained international acceptance through bilateral agreements with global partners and co-badging arrangements with international card schemes.
On the back of this success, RBI has now permitted the issuance of RuPay Prepaid Forex cards by banks in India, which Indian travellers can use at bank and merchant outlets overseas, thus providing them with another additional payment option.
Global Issuance Of RuPay Debit, Credit, And Prepaid Cards
The RBI's recent announcement also allows for the issuance of RuPay debit, credit, and prepaid cards in foreign jurisdictions.
“RuPay debit, credit, and prepaid cards will be enabled for issuance in foreign jurisdictions, which can be used internationally, including in India. These measures will expand the reach and acceptance of RuPay cards globally. Necessary instructions will be issued separately,” the RBI said in a statement.
The Future Of RuPay Cards
The RBI’s decision to allow the issuance of RuPay Prepaid Forex cards and the global issuance of RuPay debit, credit, and prepaid cards marks a significant step in expanding the reach and acceptance of RuPay cards globally.
In addition to promoting the growth of digital transactions, they are also expected to strengthen India’s position in the global financial landscape.
This move also aligns with RBI’s vision to enhance the internationalisation of RuPay cards and ensure their wider acceptance and usage worldwide. The internationalisation of UPI and RuPay cards is a key objective in the RBI's Payments Vision Document 2025. It aims to leverage India’s growing influence in the digital payments ecosystem and further establish RuPay as a trusted and widely accepted card payment system worldwide.
What Are Rupay Cards
RuPay cards are a type of payment card system introduced by the National Payments Corporation of India (NPCI). They are designed to facilitate electronic payments within India and promote financial inclusion. RuPay cards operate on the domestic card network in India and offer an alternative to international payment cards systems like Visa and Mastercard.
What Are Rupay Cards Used For?
RuPay cards can be used for various purposes
Point of Sale (PoS) Transactions: RuPay cards can be used for making purchases at retail stores, restaurants, and other merchant outlets equipped with PoS terminals across India.
ATM Withdrawals: RuPay cards can be used to withdraw cash from ATMs in India.
Online Transactions: RuPay cards can be used for making online payments on e-commerce platforms and websites that accept RuPay as a valid payment option.
Government Schemes: RuPay cards are widely used for disbursing government welfare benefits, subsidies, and other social security payments to beneficiaries.