State Bank of India is planning to end the ubiquitous usage of debit cards from the
banking system. "It is our wish to eliminate the debit cards, and am sure we can
eliminate them," said SBI chairman Rajnish Kumar on Monday while at the annual
FIBAC, a banking conclave organised by the Indian Banks' association (IBA) and
industry body Federation of India Chambers of Commerce & Industry (FICCI).
A fifth of the population relies on the debit card service of this largest lender. Inspite
of this huge reliance, SBI plans to promote more digital payments solution and eliminate
the plastic cards. The chairman of the bank Rajnish Kumar noted that there are around
90 crore debit cards in the country as against the 3 crore credit cards. He added that in order
to achieve a debit card-less country,there are digital solutions like the bank's own 'yono' platform. With the aid of the Yono platform,
customers can withdraw cash at the automated teller machines or pay for purchases at a merchant
establishment without having a card at all, noted Rajnish Kumar.
Notably, the SBI has already set up 68,000 'Yono cashpoints' across the country and will soon set up
over 1 million within the next 18 months. With the massive scalding up of the Yono service, the need to
own a debit card will become reduce, noted the bank chairman. Further, the necessity of a credit card in
the pocket will come as a "stand-by" as the Yono platform is capable of providing credit for buying certain
merchandise.
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