RUPAY SERVICES BY OTHER
COUNTRIES - INTERNATIONAL RELATIONS AND ECONOMY
News: Maldives to launch India's
RuPay service amid bilateral tensions
What's in the news?
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Notwithstanding the turbulence in their bilateral
ties, the Maldives will soon launch India's RuPay service, which a senior
minister has said "will bolster the Maldivian Rufiyaa."
Key takeaways:
RuPay:
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RuPay is the first
global card payment network in India.
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It is a combination of “Rupee” and “Payment,”
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It was launched by the National Payments
Corporation of India (NPCI) in 2012.
Objective:
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Create a domestic, open, and multilateral payment
system, fulfilling the Reserve Bank of India’s (RBI) vision.
Features:
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It is widely accepted at ATMs, POS devices, and
e-commerce websites throughout India.
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RuPay enables electronic payments across all Indian
banks and financial institutions.
Reasons Behind the
Maldives Decision to Adopt RuPay:
1. Strengthening
Maldivian Rufiyaa (MVR):
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The Maldivian government aims to make their
currency, the Rufiyaa, stronger by using less US dollars in transactions with
Indian tourists.
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This might make their economy more stable and could
improve exchange rates.
2. Boost Bilateral Trade
of Maldives:
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Facilitating rupee transactions could streamline
payments between India and the Maldives, potentially encouraging more trade
between the two countries.
3. Promote Tourism and
Economic Linkages:
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Easier rupee transactions could incentivize Indian
tourists to spend more freely in the Maldives, benefiting the Maldivian tourism
industry, a major source of income for the country.
List of Countries that
Accept Rupay:
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Bhutan
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Nepal
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Mauritius
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Singapore
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UAE