....The Reserve Bank of India, apprehensive about Visa and MasterCard monopolising the payment market, wants fair competition. “The need for RuPay is on account of the high cost borne by Indian banks for affiliation with international card associations in the absence of a domestic price setter,” said RBI Deputy Governor H.R. Khan. “Also, the connection with international card associations results in routing even purely domestic transactions through a switch located outside the country.” In the case of a Visa card transaction, the data is sent to a processing centre in the US or Singapore, which, in turn, sends it to the card-issuing bank in India. With 90 per cent of transactions being domestic, all data on Indian spending first goes to the US. If the banks start accepting RuPay cards, NPCI could act as a switch for transactions. RBI feels that a vast segment of the population has been left untouched by the growth in the electronic payment market, despite the three-decade-old presence of international card networks in India. ......
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