NPCI, the nodal agency, which will manage and promote RuPay said that the latest initative will assist banks in enhancing their payment network in remote areas and also manage the electronic payments in the country, according to Livemint.
The firm said that the card system is similar to China UnionPay network, and was first envisaged by the banking regulator in 2005.
Five banks, which include State Bank of India, Bank of India, Union Bank of India, Bank of Baroda and Axis Bank have been informally running the card for months.
NPCI managing director and CEO AP Hota said that the 200,000 cards with the RuPay brand name have already been issued and the target is to have 10 million debit cards under the brand by March 2013.
"Foreign card payment systems charge $50,000 as joining fees, but we will charge nothing. Since we are using indigenous technology and the transaction will be processed domestically, banks’ cost will come down by 40% compared with international schemes," Hota said.
He expects that all PSU banks to join the system by the end of year 2012, which will accelerate the use of debit card.
In India, people own nearly 260 million debit cards and NPCI CEO belives that 50% of all debit cards to bear the RuPay name in the next three years.
