RBI Monetary Policy 2023: RuPay forex cards & issuing e-Rupi vouchers on behalf of individuals permitted

The Reserve Bank of India has permitted banks to issue RuPay pre-paid forex cards in India. This can be used at ATMs, Point of Sales machines and online merchants overseas. The RBI also believes that this will expand the payment options for Indians abroad.

RBI governor Shaktikanta Das, during the credit policy announcement, said that RuPay debit and credit cards issued by the banks in India are gaining increased acceptance abroad.

As per RBI, these RuPay cards can also be issued in foreign jurisdiction which could be used both abroad and in India.

"This will expand the payment options for Indian travelling abroad. Further the RuPay cards will also be enabled for issuance in foreign jurisdiction these measures will allow and acceptance of rupee cards globally," said Shaktikanta Das

The governor also said that RBI will permit non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers. The bank has also permitted the vouchers to be issued on behalf of individuals. The governor has expressed confidence that this measure will make the benefits of e-rupee digital voucher accessible to a wider set of users and further deepen the penetration of digital payments in the country.

Currently, the purpose-specific vouchers can be issued only by the Banks on behalf of state and central government and to a limited extent on behalf of corporates.

"At present, purpose-specific vouchers are issued by banks on behalf of central and state governments and to a limited extent on behalf of corporates. Keeping in view the benefits for users and beneficiaries alike, it is proposed to expand the scope and reach of e-RUPI vouchers by a) permitting non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers and b) enabling the issuance of e-RUPI vouchers on behalf of individuals," the RBI said

e-RUPI is a contactless and cashless vouchers that are sent to users phone via a SMS or QR code. The user can then redeem the vouchers at any centre that accepts it. A main advantage of e-RUPI is that a bank account is not required. It can be availed even via a basic phone.