EMV cards and e-RUPI

EMV cards

  • Debit card security standard that includes a small microchip in the debit card. The microprocessor chip embedded in the card prevent card skimming or cloning that is possible in magnetic stripe cards
  • Advantage over magnetic stripe cards:
    • The magnetic stripe credit and debit cards store the data on the magnetic stripe found on the reverse side of the card. Fraudsters place a skimmer device inside the card swipe slot in ATMs or PoS terminals to read the customer data stored in the magnetic stripe.
    • EMV chip cards prevent such skimming because they do not reveal the user data to the terminal at the time of swiping the card.

e-RUPI

  • PM Modi has launched E-RUPI as the new digital payment system to send Government’s monetary benefits directly to the beneficiaries be leveraging mobile phones.
  • About e-RUPI: Developed by the National Payments Corporation of India (NPCI).
  • Features
    • Person and purpose specific cashless digital payment solution. It could be used only by the person it is meant for and only for the purpose it is issued.
    • Cashless and Contactless instrument for digital payment
    • QR code or SMS string-based e-voucher, which is delivered to the mobile of beneficiaries.
    • It is offline hence can be accessible even in the remotest areas.
    • Runs on UPI platform.
    • A beneficiary must carry an SMS or QR code which is then scanned to make payments.
    • It works even on basic phones (No requirement of smart phones)
    • It does not require any physical interface for transactions and could be taken up in the remotest area of the country.
image 147

Recent developments

  • Enhancement of the Cap under e-RUPI
  • Present Status: e-RUPI has a cap of Rs 10,000/- per voucher and each voucher can be used / redeemed only once.
  • New Announcement: RBI has proposed to increase the cap on amount for e-RUPI vouchers issued by Governments to Rs 1 lakh per voucher and allow use of the e-RUPI voucher multiple times (until the amount of the voucher is completely redeemed).

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The maximum upload file size: 20 MB. You can upload: image, document, archive. Drop files here