After the ban, oats are slowly coming up in increased use of debit cards in the country

Mumbai, Ta. 23 December 2019, Monday

Statistics show that the rise of digital payments in the country has been declining since the blockade of 3. There are signs that Indians are not particularly enthusiastic about using cards, especially debit cards.

The number of debit cards in October last year, which stood at 8.5 million, has dropped by 5% to 8.5 million in the last one year, as of October 1. The figure is at a two-year low. The number of debit cards in the 8th, which was 8 million, increased from 2 to 5 crore.

According to the Reserve Bank sources, some 1.5 crore debit cards have been removed from the market. The decline was reported due to the departure from the magnetic strip to chip-based cards.

Since EMV chip based cards are very secure, the Reserve Bank has made it mandatory for all banks to issue such cards.

Due to the Reserve Bank's instructions, most banks were busy issuing new debit cards during the period. More than 5% of debit cards were reissued. On April 7, most banks blocked magnetic stripe cards. The remaining twenty percent of the cards were automatically deactivated. However, these cards belonged to dormant accounts. That is, accounts that have been inactive for a long time, sources said.

There is no point in issuing cards to such idle account holders, he added. There is no denying that these accounts could have been opened only in the absence of a note. Besides, bank accounts of job-changing employees are also changing frequently. Due to this, the number of inactive accounts is high.