Is the new RuPay forex card different? Experts weigh in

The National Payments Corporation of India (NPCI) launched RuPay cards to bolster Digital India’s efforts to foster a self-sustaining, inclusive financial ecosystem, support digital payments and boost domestic economic development. RuPay Debit/ Credit Chip Cards sport sophisticated safety features, such as an embedded microchip and PIN, to provide unparalleled security to user transactions. In an ecosystem that Visa and MasterCard once dominated, RuPay has firmly established itself as a robust payment method accepted domestically and internationally.

Adhil Shetty, CEO of BankBazaar.com, said, “The launch of RuPay Prepaid Forex cards is a milestone achievement that, while expanding on the range of payment options for Indians travelling abroad, will help establish India’s presence as a major player in the global financial space.”

He further said, “RuPay forex cards, like other Rupay cards, will be issued by Indian banks in partnership with NPCI. Fees on RuPay cards may also differ compared to their counterparts. This is because RuPay operates on a domestic payment network, unlike other issuers operating on an international network."

“The RuPay Forex cards may charge you a minimum ATM withdrawals fee and may even make a few numbers of withdrawals free when transacting abroad. Also, the RuPay card may charge you a meagre mark-up fee compared with other forex cards. However, for better understanding, the Reserve Bank of India will come up with the guidelines soon,” said a senior person with knowledge of the matter, on the condition of anonymity.

Typically, Prepaid Forex cards do not carry a forex mark-up fee. But for transactions where the transaction currency is different than the currency available on Multicurrency Forex Card, the bank charges cross currency markup of around 2% on such transactions.

According to experts, this is a welcome move by the RBI in today’s Monetary Policy Committee (MPC) meeting. In the Statement on Developmental and Regulatory Policies, issued on Thursday, RBI Governor Shaktikanta Das said that in order to expand payment options for Indians travelling abroad, it has been decided to allow banks to issue RuPay Prepaid Forex cards in India for use at ATMs, PoS machines and online merchants overseas. “Further, 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.” Hence, the government ought to come up with the details soon.

RuPay has continuously evolved and introduced new features and services to enhance its offering. These include personalised card designs, tailored rewards programs, and partnerships with various merchants, making it more attractive to users. "The forex card is expected to carry the same experience to a larger global audience,” said Shetty.