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LATEST NEWS UPDATES | Digital push problem: 9 of 10 cards used at ATMs, not for purchases -Sunny Verma

Digital push problem: 9 of 10 cards used at ATMs, not for purchases -Sunny Verma

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published Published on Dec 14, 2016   modified Modified on Dec 14, 2016
-The Indian Express

Reserve Bank of India data for October 2016 put the number of debit cards in the country at 94.2 crore.

New Delhi:
The Centre’s digital push stares at a debit card usage problem: nine of ten cards are used solely for cash withdrawals at ATMs.

Reserve Bank of India data for October 2016 put the number of debit cards in the country at 94.2 crore. People used debit cards for transactions worth Rs 2.63 lakh crore in October but over 90 per cent of these were done at ATMs. Only 8 per cent utilised these cards at POS (Point of Sale) terminals to purchase goods and services.

Nearly 50 per cent of the total number of debit cards are being actively used but the utilisation rate for goods and services is much lower — around 6-8 per cent. This is despite the fact that there are 15.12 lakh POS terminals across the country as against a total of 2.20 lakh ATMs.

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The Indian Express, 14 December, 2016, http://indianexpress.com/article/business/banking-and-finance/cash-crunch-digital-push-problem-9-of-10-cards-used-at-atms-not-for-purchases-demonetisation-442591


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