Calcutta, May 3: To promote the use of plastic money, the Reserve Bank of India is set to launch an IndiaPay card modelled on the China UnionPay card.

“The primary intention is to promote the use of cards among people. Making this card people-friendly will help us achieve this. The card will be modelled on its Chinese counterpart, but the exact type (whether it will be a smart card or not) will be decided by the National Payment Council of India,” said R.B. Barman, executive director of the Reserve Bank of India.

China introduced its UnionPay card in 2002. It is a domestic credit card organisation and its network comprises 14 major and many other smaller banks with over 85,000 ATMs. Almost all UnionPay Credit Cards are also affiliated with either MasterCard or VISA and they can be used abroad as a regular Mastercard or VISA.

In India, the card will be affordable with low interest rates and risk reduction methods. The National Payment Council of India is in the process of getting registered.