RBI to encourage the use of debit and credit cards
Posted on: 21/Sep/2016 11:00:12 AM
The Reserve Bank of India has decided to instigate the customers to buy products using debit and credit cards. The Reserve Bank of India wants banks that are not installing card accepting machines to contribute to a fund that will subsidies’ installation of point of sales (PoS) terminals
There are over 68-crore debit cards in India. Over a third of these have been added in the last two years following the implementation of the Jan-Dhan Yojana. But the number of PoS terminals (credit card accepting machines) has gone up marginally from 12 lakh to 14 lakh.
The average debit cardholder in India uses his/her card only once at a PoS machine for every 10 transactions in an ATM. Hence RBI will subsidize installation of PoS machines with smaller merchants and in small towns and villages.
