Mumbai: The Reserve Bank of India (RBI) proposes to launch an `IndiaPay' credit card on the lines of China's `UnionPay' card by end-2009 to promote the use of plastic money.

The credit card will be designed specially for the common people, with low interest rates and lower risks. However, it is not yet decided on whether it would be a credit card or a smart card, RBI executive director R B Barman said on the sidelines of a conference in Kolkota.

''The primary intention is to promote the use of cards among people. Making the card people-friendly will help us achieve this. The card will be modelled on its Chinese counterpart, but the exact type will be decided by the National Payment Council of India,'' Barman said.

He said the National Payment Council of India (NPCI) is working on the registration process of the card. The NPCI authorities would decide on the type of the card - whether it would be a smart card or something else, he added, ''If all our plans and government procedures gel well then we can hope to release this card in the market by the end of 2009,'' he said. In 2002, China introduced the `UnionPay' card, which gives accessNNto over 85,000 ATM counters of 14 major and other minor banks across the world.

The UnionPay credit cards are also affiliated with either MasterCard or VISA and they can be used abroad as a regular international credit card.

The RBI has also placed on its website the report of the committee suggesting a framework for electronic benefit transfer (EBT).

The committee has has suggested a broader methodology to ensure that government payments reach the ultimate beneficiaries using the banking channels, adopting the plan of financial inclusion using BCs and biometric based smart-card technology. The committee has also suggested a framework for monitoring the progress in implementation.

EBT aims to route all payments to beneficiaries of social welfare programmes of the state governments and the centre through banking channels.

Currently, payments are made either through government offices or through banks or other means like money orders. The RBI has also taken certain initiatives to enlarge the reach of banking facilities to sectors neglected so far through its financial inclusion initiatives in the form of permitting banks to engage business correspondents (BC).

RBI has posted the committee' report on electronic benefit transfers on its website to facilitate public comments.