Jan Dhan Yojana: RuPay Gaining Currency, Annoying US companies MasterCard & Visa
Dec 16, 2015: Due to a sharp rise in RuPay cards, US card companies Visa and MasterCard are feeling annoyed for not including them in Jan Dhan Yojana. Jan Dhan Yojana is a financial inclusion program run by Government.
The US card companies have asked RBI and Government to give them a chance to play at an equal level of RuPay card and consider their services also. They have claimed that their services are cheaper than RuPay Card.
Ari Sarker, co-president of MasterCard, said his company wants to grab an equal chance to participate in Jan Dhan Yojana, as it is Worlds’ largest financial inclusion program. He expressed that the services and pricings were 30% cheaper than others for ATM transactions. He added that banks and the government were taking favor of RuPay cards and ignoring the Visa and MasterCard services.
"The market is not open and competitive in its entirety, only in parts. It is not that nobody was interested in this space, and therefore, by default, the government was left with no option (but to give NPCI the mandate to issue new cards). Banks are aware, but there is an invisible mandate that we are not able to play in that space," Sarker said.