The Card Payment Industry in India is pretty small compared to the CASH economy. In 2011, it was Rs 140,000 Cr or USD $28 Bn. The finance minister in his budget speech had envisaged the promotion of electronic payment systems with incentives. The RBI swiftly acted on this move and sent a notification to all the CEOs of Banks operating in India pointing out the discrepancy in Debit Card Vs Credit Card spend by consumers.
Though Debit Cards at 26.37 Mn outnumbered Credit Cards 17.67 Mn, consumers were not spending enough on Debit Cards but rather chose to withdraw cash for spending needs.
Another practice most commonly seen in
Read moreDebit Card Acceptance by Merchants to get Cheaper in India – RBI