The RBI has allowed banks to issue RuPay Prepaid Forex cards for use at ATMs, PoS (point-of-sale) machines and online merchants overseas, and enabled the issuance of RuPay Debit, Credit, and Prepaid Cards in foreign jurisdictions for international use, including India.

These measures will expand the reach and acceptance of RuPay cards globally and expand payment options for Indians travelling abroad, the central bank said.

”This opens up new avenues for seamless and flexible cross-border transactions. This development brings forth enhanced convenience and efficiency for individuals and businesses engaged in international trade,” said Rajsri Rengan, India Head of Development, Banking and Payments at FIS.

RuPay Debit and Credit cards issued by banks in India have gained international acceptance through bilateral arrangements with international partners and co-badging arrangements with international card schemes.

e-RUPI vouchers

RBI also proposed expanding the scope and reach of e-RUPI vouchers by permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers, enabling issuance of e-RUPI vouchers on behalf of individuals, and simplifying the process of issuance and redemption.

“Other aspects like reloading of vouchers, authentication process, issuance limits, etc., will also be modified to facilitate use of e-RUPI vouchers,” the central bank said adding these measures will make the benefits of e-RUPI accessible to a wider set of users and further deepen the penetration of digital payments.

The e-RUPI digital voucher, launched in August 2021, rides on the Unified Payments Interface (UPI) system of National Payments Corporation of India (NPCI). At present, purpose-specific vouchers are issued by banks on behalf of central and state governments and corporates to some extent.

“It will facilitate non-bank PPI issuers, individuals, and corporates to utilise it for various programs. Picture a token delivered in the form of an entitlement, capable of reimbursing bills or covering medical treatments for end users. e-RUPI can also ensure the desired end use of donations, whether it is towards medical purposes or other forms of assistance,” said Anand Kumar Bajaj, Founder and MD of PayNearby, adding that the technology is already in place and players will just need to plug in with relevant partners once the guidelines are issued.

Streamlining BBPS

In order to enhance efficiency of the Bharat Bill Payment System (BBPS) and to encourage greater participation, RBI said it will streamline the process flow of transactions and membership criteria for onboarding operating units.

BBPS is an ‘anytime anywhere’ bill payments platform, operational since August 2017. Currently, it has over 20,500 billers and processes over 9.8 crore transactions monthly. Its scope was expanded in December 2022 to include all categories of payments and collections, both recurring and non-recurring, as well as facilitating in-bound cross-border bill payments.

“This will help integrate back-end systems efficiently for a seamless experience, which could also bring new players to the table and improve the ad-hoc payment system, It will be an advantage to bolster fraud monitoring and risk mitigation systems to ensure smooth online transactions,” said Pranay Jhaveri, MD - India and South Asia, Euronet.