Hello everyone, on 15th of August 2014, the government of India announced a revolutionary announcement about the Pradhan mantri jandhan yujna. This gave rise to an iconic venture by NPCI (national payment corporation of India). This venture we talking above that none other than INDIA'S own card network that we all know today as RUPAY & it inteprets in the INDIAN PAYMENT industry that in 2013 rupee accounted for only 0.6% of all cards but in just 4 years by 2017 rupee had already surpassed visa as INDIA'S largest payment card with 375million transaction & by 2020 it captured a market share of 60% in Indians card market and this put Visa under big threat on competition against RUPAY that it approached the US government to help them stand against RUPAY. So, the question is : In 6years, how did Rupay kill the billion-doller duo bully of visa & MasterCard in India & what the government starategy & behind this revolutionary initiative & importantly as a citizen of India, what is that we need to know about RUPAY as how, it is going to affect the lives as people of India.
First of all we need to understand the mechanism of banking system in order to carry out our transaction so, Lets understand this complex mechanism in very simple examples.
Let's say I have an SBI VISA/MASTER CARD with a one lakh of credit/debit limit & peter England is this clothing merchant with his/her account in HDFC this makes SBI the issuing bank and HDFC the acquiring bank. So, this is how the banking transactions between us get excuted in the backend. When I enter my SBI CARD details to make 5000 rupee payment my card details get entered into the payment gateway of the website in this case, Let's say it is RAZORPAY. So, it will help the merchant receive payment from the different sources like credit/debit/UPI etc. Since, now I am making a debit card transactions RAZORPAY will collect my card information & the payment account
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