State Bank of India wish to kill Debit Card (Replace with Yono App)

[Sushubh]

State Bank of India Plans to Eliminate Debit Cards From Banking System

 

[Smh]

but why ?

 

[genie]

to save cost or work or both.

 

[vishalrao]

Waiting for news about this new system getting hacked and money being stolen from customers

 

[Sushubh]

They actually said i believe that yono helps coz customer doesn't have to carry a debit card with him. Idiocy all around.

 

[Smh]

for yono I guess you will need a mobile with data connection and yono cash points like atm. Even if you can modify atm to work with yono app it doesn't make much sense. They already charge people for debit card service so they are not losing money on it.

Do banks have to pay visa, master ,rupay for atm withdrawal ?

 

[Navjot Singh]

Problem is Govt wants to eliminate all transaction charges on debit card transactions. So SBI being the smartguy went ahead and is thinking of getting rid of them entirely.

 

[NikhilS]

I'm still wondering how SBI's YoNo will work on other bank's ATMs.

EDIT: Also internationally

 

[Sushubh]

Lots of issues with this.

With debit card, only the ATM machine needs to have proper connectivity. With Yono… Customer needs to have a smartphone with internet plan. Phone should have battery life. Mobile internet should be working. Yono app should be working. SBI servers should be working. A lot of elements are involved. Anything failing would mean that the customer is not going to get cash.

If internet is banned… with debit card… at least the user can transact at retail stores. No such luck with Yono.

If customer loses his phone. He cannot take out money from the ATM. He cannot buy a new phone. SBI I guess expects him to visit a SBI branch with a self cheque to get cash taken out.

So much wrong with this idea.

 

[genie]

I faced similar situation recently when I had to deposit some cash in SBI bank. Their computers were not connecting so . I rushed to another branch nearby but it had bigger crowd waiting.

When this happens in my other bank they will accept it say it will take some time to update in my account. But in SBI they take a break