NIPL, AEP sign agreement: India to set up RuPay Domestic Card Scheme in the United Arab Emirates

India, UAE sign agreement to set up RuPay Domestic Card Scheme: The NPCI International Payments Limited (NIPL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), and the Al Etihad Payments (AEP) have on Thursday entered into a strategic partnership agreement for domestic card scheme implementation in the United Arab Emirates (UAE). The Al Etihad Payments is an indirect subsidiary of the Central Bank of UAE (CBUAE). 

What has been agreed upon?

As per the agreement signed by NIPL and AEP, the two bodies will work together to build, implement, and operationalize UAE's national domestic card scheme.

The domestic card scheme will look to facilitate the growth of e-commerce and digital transactions in the UAE, bolster financial inclusion, support the UAE's digitization agenda, increase alternate payment options, reduce the cost of payments, and enhance the UAE's competitiveness and position as a global payments leader. 

The partnership aligns with NIPL's aim to offer its knowledge and expertise to assist other countries in establishing their own cost-efficient, and secure payment systems.
 

What is the domestic card scheme (DCS)?

The DCS solution is based on the principles of sovereignty, speed to market, innovation, digitization, and strategic independence.

The DCS solution provided by NIPL consists of a RuPay stack and value-added services like fraud monitoring services and analytics.

NIPL will also assist AEP in formulating the operating regulations for their domestic card scheme.

Abu Dhabi | India’s Ministry of Commerce and Industry and UAE’s Ministry of Industry & Advanced Technology signed a Memorandum of Understanding (MoU) on cooperation in the field of industries and advanced technologies.

MoU was signed in the presence of Commerce and Industry… pic.twitter.com/hOeiwJsLsM

— ANI (@ANI) October 5, 2023

What is RuPay? 

RuPay is an indigenous, highly secure, and widely accepted card payment network in India, with RuPay cards offering debit, credit, and prepaid propositions. 

Over 750 Million RuPay cards are in circulation as of date, and RuPay cards make up more than 60% of total cards issued in India, with every second Indian having a RuPay card now. These cards are issued through the entire banking spectrum, including public sector, private, and small banks.

India's Digital Public Infrastructure (DPI) is driving massive transformation in the payment space. DPI framework includes digital identity, digital payments, and digital data exchange layers. 

Also, India is the third largest fintech ecosystem in the world, with rapidly-developing unicorns. The country has witnessed an exponential growth of 367 per cent in customers participating in digital transactions in the last five years, with an active customer base of more than 340 million.