SBI has set up 68,000 'Yono cashpoints' where it aims to offer digital solutions to customers, thus eliminating the use of debit cards.

SBI wants to scrap debit cards promote digital payments through its Yono platformImage: Picxy.com
Money Banking Tuesday, August 20, 2019 - 14:45

While the government wants to push more people towards adopting the digital transaction mode, the country’s largest public sector bank, State Bank of India wants to eliminate debit cards altogether. This does not mean the bank is against the digital transactions. Speaking at FIBAC summit, SBI Chairman Rajnish Kumar explains that what they want is to promote the ‘Yono’ platform the bank has developed, eliminates the use of a plastic card.

The SBI Chairman points out that there are over 90 crore debit cards in the country apart from 3 crore credit cards.

Speaking of ‘Yono’, there are at present 68,000 ‘Yono cashpoints’ operating and the bank wants to take this number to 1 million in just 18 months’ time. These ‘Yono cashpoints’ will be able to dispense cash and let customers make payments without having to use their debit cards. What’s more, these points, which are more like automated teller machines, can offer a credit line as well. Customers desirous of buying some white goods or appliances can avail this credit line and do away with the debit cards as well.

The SBI Chairman recommends the use of QR Cods as well as a good payment method that helps avoid the use of the plastic cards.

Rajnish is confident that there will be a limited need to have any plastic cards in the next few years.

The objective of SBI to get rid of debit cards may not be as easy as the bank would want it to be. In the Indian context, people get used to certain habits and conveniences and bringing in a massive change like this will be accompanies by a host of challenges. Those now using the debit cards for online purchases will also have to be evolved and the information sent down to the last customer in the remote parts of the country.

Show us some love! Support our journalism by becoming a TNM Member - Click here.