Start using debit cards, says Urjit Patel

By: Express Web Desk | New Delhi | Published:November 27, 2016 7:23 pm
Urjit Patel, rbi, demonetisation, demonetisation news, RBI governor, genuine pain of citizens, liquidity, banking, Urjit Patel silence on demonetisation, India news, Indian Express RBI Governor Urjit Patel. (Express Photo/Ganesh Shirsekar)

Supporting government’s ambition to make India a cashless economy, RBI Governor Urjit Patel on Sunday urged the people  to start using debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India “leapfrog into a less cash-use economy at par with more developed nations.” “We are also urging banks to make a big push with PoS (Point of Sale) machines with traders so that debit card use becomes more prevalent,” he said.

Debit card is a plastic card that allows the holder to transfer money electronically from their bank account when making a purchase or withdraw cash from ATM.

To lessen woes of people facing cash crunch, the RBI has already waived ATM charges on all transactions done by savings bank customers till December 30. The waiver is applicable on transactions done at ATMs from November 10 till December 30, 2016. There are about 2 lakh ATMs of different banks across the country. A customer was permitted at least five free transactions per month for use of own bank ATMs. Banks could charge up to Rs 20 (plus service tax, if any) beyond the permitted transactions.

Read Also: RBI taking necessary action to ‘ease pain of citizens’, says Urjit Patel

Following cancellation of legal tender character of old Rs 500 and Rs 1000 currency notes from November 9, restrictions were imposed on cash withdrawals from accounts and ATMs. The central bank on November 13 raised the daily withdrawal limit from ATMs to Rs 2,500 from Rs 2,000 earlier. The weekly limit of Rs 20,000 for withdrawal from bank accounts was increased to Rs 24,000.

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  1. B
    Babau Ram Vishvakarma
    Nov 27, 2016 at 3:28 pm
    Those who are admant to go for cashless economy for India are in fools paradise because of social structure of the nation.Only mixed transaction would work in India and both mobile as as cash would go in parallel depending on place and people.There are places where debit card may work .But other places only cash will work.
    Reply
    1. V
      V.V.S. Ramakrihsna
      Nov 28, 2016 at 10:43 am
      The RBI Governor will not do anything about frauds practiced by banks, what will they do about restraining banks from imposing charges on use of debit cards. These people only want to fleece your pocket and your money. Why should there be any charge, whether POS use or ATM use to access our own money? Its a shame and a cruel joke on people and an effort to unduly enrich the banks and fraudulent banks too!
      Reply
      1. I
        Indian
        Nov 27, 2016 at 11:30 pm
        Both Gujjus have ruined India. Janta maaf nahi karegi.
        Reply
        1. I
          Indian
          Nov 27, 2016 at 11:38 pm
          Living in their AC rooms and after world tour, both gujjus forget that 60% Indians live in poverty of some form. Khoon ke aasoon rulaane wale, Janta maaf nahi karegi.
          Reply
          1. J
            jag
            Nov 27, 2016 at 10:21 pm
            what is mr. patel talking? he is just repeating his master's voice. lot of stuff that people buy is sold by traders in unorganised sector. how can you expect them to accept debit card? sir, please be realistic. do not just wish for moon and stars.
            Reply
            1. A
              Ankit Goel
              Nov 28, 2016 at 2:32 am
              aur ye card transaction pe jo 2.5% tak ka processing fee lagta hai ye kon pay karega?
              Reply
              1. R
                roby mani
                Nov 27, 2016 at 2:31 pm
                By the time this becomes operational, all of us will be dead,lt;br/gt;Bring in immediate solutions for the economic mess created,by you to please your bosses who have placed you in that position.
                Reply
                1. M
                  mathimathi
                  Nov 27, 2016 at 7:12 pm
                  100 % literate country china with 95 % smartphones export can do it. but ours 70 % literate country yes we can't be do it RBI CHIEF Like fake Gujju Model.
                  Reply
                  1. S
                    Santy
                    Nov 27, 2016 at 4:58 pm
                    No one is calling for a cashless society immediately. It will be in phases. Those who can should shift into it so as facilitate ones who are still not IT savvy. But a start has to be made. Who will do it. It has to be the new India; Young and Vibrant raring for change. The government is addressing this consuency.....
                    Reply
                    1. S
                      Sk Banerjee
                      Nov 27, 2016 at 6:03 pm
                      In the world of Digital economy, we may remember in a developed society unfortunately there is a fraud every 15 seconds (this data for UK). In India the fraud cases are hardly settled in favor of the victim and the culprits are seldom caught or punished (Hope official data will be available). Recently debit cards of 3 lac card holders were compromised and 642 cases of fraud (mostly from abroad) were detected and the affected persons were promised to be compensated by the banks.Our protection and cyber fraud detection requires to be more effective - when literacy rate is less than even in Bangladesh.
                      Reply
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