The State Bank of India is looking to end the usage of debit cards from the banking system. The move comes as SBI plans to promote more digital payments solutions and eliminate the plastic cards. This is despite the huge reliance on debit cards by customers of SBI which services a fifth of the population.
What SBI says on debit cards:
"...it is our wish to eliminate the debit cards, and am sure we can eliminate them," chairman Rajnish Kumar said, speaking at the annual Fibac Monday.
He said there are around 90 crore debit cards in the country as against 3 crore credit cards, and pointed out to digital solutions like its own 'Yono' platform as the key for achieving a debit card-less country.
Kumar said through the Yono platform, one can withdraw cash at the automated teller machines or pay for purchases at a merchant establishment without having a card at all.
He said the bank has already set up 68,000 'Yono cashpoints' and is in the process of scaling it up massively to over 1 million in the next 18 months, which will make the necessity to have a card even less.
Additionally, the Yono platform can also give credit for buying certain merchandise, making the credit card in the pocket also as a "stand-by", Kumar said.
In the next five years, there will be a limited need to have any plastic cards in your pocket, Kumar said, pointing out that virtual coupons is the future.
He said at present, the QR code is also a very inexpensive way of ensuring payments.
What is YoNo:
With YONO, you only need one app for all your banking, shopping and investment needs. YONO is your one-stop shop to fulfil all your banking, insurance, investments, and daily shopping needs.
Features of YONO:
Instant account opening - Open a digital savings account in less than 5 minutes without leaving your home and get personalized platinum debit card, Concession on Bank service charges & Paperless
India’s largest shopping marketplace - Exclusive discounts and offers for SBI customers across a large number of e-commerce merchants
Banking simplified - Easy to understand interface, Simple and intuitive navigation
Quick pay - Intelligent funds transfer with UPI enabled payments
One view - Link and view all State Bank group relationships (Bank and all JVs) in one app
Smart spending - Intelligent spending analysis using smart auto-tagging and categorization of the transactions
Your friend in need - Pre-approved personal loans on the go up to Rs. 1 lakh without any documentation in 2 minutes