Government requests banks to issue cards with mobility features

19 Jul 2023 , 12:46 PM

The National Common Mobility Card (NCMC), which has contactless or near-field function capabilities, should be selected as the default choice for all new cards and reissues of existing cards, the government has instructed banks.

The letter, which was sent earlier this month, will probably encourage banks to issue more cards on the RuPay network because the bulk of cards with NCMC functionality are on the RuPay network.

The development was confirmed by a top official, who also stated to ET that lenders can anticipate all of their cards to contain NCMC capabilities, including an offline wallet. He explained the rationale behind the current directive: ‘It was observed that most lenders, including both private and public sector banks, are not issuing NCMC cards with NFC functionality. 

An embedded radio frequency antenna on a chip card known as a contactless card enables transactions up to a particular value without requiring the user to enter their PIN information. The NCMC card functions as a wallet and a debit card. It is mostly utilized for transit on metros and other systems of transportation. It can also be used to make payments online and in stores.

The government stated in its statement to banks that it is crucial that contactless cards be NCMC-compliant in order to promote one card in all payment systems throughout the nation and facilitate modest digital daily payments.

The majority of cards produced on the RuPay platform are compatible, according to bankers, but cards from other payment networks do not yet have this feature because they are still awaiting authentication certification from the necessary authorities. 

‘While the majority of cards used with the RuPay platform are fully compliant, there may be certain instances where cards from other networks lack this feature. To resolve these difficulties, we will hold additional talks with all parties involved, according to the official previously stated.

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