In April 2013, Federal Bank unveiled its Rupay Brand Debit Card. This is the first launch by a private sector bank in India. Shri N. R. Narayana Murthy Chairman Emeritus of Infosys Limited did the honors at a function in Kochi.
The main advantage for Federal Bank will be the early mover strategy with respect to RBI’s guidelines dt 28/02/2013 on Securing Card Payment Transactions
The advisory requires banks to ensure that all new debit and credit cards are issued only for domestic usage unless international use is specifically sought by the customer.
It has been noticed that majority of the fraudulent debit card transactions involving swiping them abroad. The main complaint of the card holder is that he/she was in India when the fraudulent transaction took place; hence, the liability is not accepted by the card holder. With the debit card being restricted only for domestic usage, this will eliminate fraudulent transactions being executed on his/her card from outside India.
Hence, with Rupay in place, Federal Bank can offer to its new customers a pure domestic usage card immediately.
Federal Bank has a pre dominantly NRI retail account base, and this card would be beneficial to their family holders in India.
Once NPCI starts building up Rupay POS acceptance base, the participating banks would find it easier to encourage their account holders to switch to Rupay.
- Refund problems for debit cards (bbc.co.uk)
- Criminals alter local ATM machines to gain access to victims’ debit cards (krem.com)
- Bank of America alerts customers of possible compromised accounts (kmov.com)
- Consumers Need to Beware of Fine Print With Prepaid Debit Cards (atlantablackstar.com)