India’s largest bank, State Bank of India plans to kill Debit Cards in coming days. At FIBAC meet 2019, SBI Chairman Rajnish Kumar said that they are going to eliminate Debit Cards in coming days.
The question, however, is why? In India, right now there are around 90 crore debit cards whereas 3 crore credit cards. Moreover, as of March 2017, SBI has 59,291 ATMs in India. We are not able to analyze the cost of maintaining the ATM-based SBI banking sytem. However, we are sure that the cost of the current model is way higher than Digital Banking.
Yes, you heard it right, SBI looks forward to eliminating Debit Cards with SBI Yono banking. Those of you who don’t know, let me tell you that SBI Yono is an app-based digital banking platform. That means to utilize the service provided by SBI Yono, all you have to do is download the SBI Yono App from Google Play or App Store.
With SBI Yono app, you could do all your banking activities like checking account balance, creating a fixed deposit, add beneficiary, request chequebooks and more. Also, you can get a home loan, car loan, and education loan from the Yono App. Other things include shopping from leading e-commerce market.
SBI Yono also helps you to withdraw cash from ATM or pay to the merchant without having a card at all.
SBI officials plan to set up 1 million Yono Cash points in the coming 18 months. However, Right now, India has around 68,000 Yono Cashpoints from where SBI Yono customers can transact cash without having a card.