|Railway minister Suresh Prabhu launching the RuPay card.|
INDIAN Railways in collaboration with the Union Bank of India and the National Payment Corporation of India on March 24 launched RuPay pre-paid debit card.
The card which can be used to book train tickets and used for other types of transactions was launched in New Delhi by Railway Minister Suresh Prabhu.
The card is a collaboration between Indian Railway Catering and Tourism Corporation (IRCTC), Union Bank of India and the National Payment Corporation of India.
The initiative is in line with the government's financial...inclusive programme and the railways is tying up with financial institutions to come up with new services for promoting passengers' interest.
"It (RuPay pre-paid debit card) is in line with Prime Minister Narendra Modi's financial inclusive programme," the minister said.
IRCTC said the card is being offered in two variants, whereby the passengers can either avail a virtual card or a physical card under the new offer.
Initially the card can be used to book tickets only and that other types of transactions like shopping and bill payments will be included the card plan later, said IRCTC.
The card also comes with a free accident insurance coverage worth Rs.1 lakh and provides the card-holder with the opportunity to collect reward points on every transaction.
Union Bank of India said the first five transactions every month for booking train tickets will be free.
You can also do shopping and pay service bills using RuPay pre-paid cards.
The cards can be made available from UBI offices or through IRCTC online. Initially the service will be available for booking tickets and later on, facilities for shopping and bill payments will be added.
The service was launched by the IRCTC in collaboration with Union Bank of India and National Payment Corporation of India.
RuPay is the country's own card payment gateway network like Visa and Master Card, and provides an alternative system for banks to provide a debit card service.
UBI CMD Arun Tiwari said "the card holder will get free Rs 1 lakh accident insurance coverage as part of the benefits to customers."
In order to make the card attractive, reward points will be given on each transaction.
One can have the card with a loading limit of Rs 10,000 with partial Know Your Customer (KYC) details or Rs 50,000 loading limit with full KYC.
Manocha said the first five transactions per card every month done on IRCTC for purchase of train tickets will be free and no transaction charges will be levied to customers for six months only.
For every subsequent transaction post the free usage, customer will be charged Rs 10 per transaction.
The transaction charge would be Rs 10 per ticket for booking a ticket through the card on the IRCTC portal.
Prabhu said Railways was partnering with banks and financial institutions to promote passengers' interest.
IRCTC Chairman and Managing Director AK Manocha said the card was a first-of-its-kind in the market as both virtual as well as physical cards are being issued to customers in two variants.
IRCTC had signed an MoU with UBI for executing the RuPay card project.