SBI Chairman Rajnish Kumar has said that the bank has plans to remove debit cards in order to promote digital payments solution and eliminate plastic cards.
In a first, largest lender State Bank of India has decided to remove debit cards from its banking system. Chairman Rajnish Kumar said on Monday that ‘it is our wish to eliminate the debit cards, and am sure we can eliminate them”.
Although a fifth of the population is dependent on the debit card service of SBI, the bank is adamant on its decision to put an end to the use of debit cards. Kumar said that there are about 90 crore debit cards in India as opposed to 3 crore credit cards. He further stressed that digital solution like its ‘Yono’ platform can help in reaching the goal of debit card-less country. Through the Yono platform, customers can withdraw cash at the automated teller machines or pay for purchases at any merchant establishment without using a card, he further asserted.
Kumar said that the bank has already established 68,000 ‘Yono cashpoints’ in the country. He also highlighted the plan to set up over 1 million cashpoints in the next 18 months. This will significantly reduce the need to have plastic cards in your pocket, Kumar added. He made the remarks at the annual banking conclave FIBAC, which was organized by the Indian Banks’ Association (IBA) and industry body Federation of Indian Chambers of Commerce & Industry (FICCI).
The chairman said that the Yono platform will also be able to credit certain amount for the purchase of merchandise. The necessity of having a credit card will also come as a “stand-by” as the Yono platform will already provide credit for the purchases. Kumar stated that while the QR code is an inexpensive method of ensuring payments, virtual coupons is the future.