Press Information Bureau
Government of India
Ministry of Finance
05-December-2016 16:29 IST
Benefits of Debit Card Activation – FAQs
Here are given some of the major benefits of Debit Card activation in the
form of Frequently Asked Questions (FAQs) and their Answer format:
QUESTION 1: Why it is important to have active debit cards?
ANSWER: Debit Card makes your payments much more convenient and secure
through an electronic payment facility directly from your bank
account. Debit card can be used for purchases online or at shops by directly
debiting your Bank account. Debit cards can also be used to withdraw cash from
an ATM.
QUESTION 2: How is a customer benefited by debit cards?
ANSWER: Major benefits to customers are
Ø It is more
convenient to carry a small, plastic card instead of a bulky Cheque book or a
large amount of cash.
Ø Easy to obtain: Once
you open an account most institutions will issue you a debit card upon request.
Ø Convenience: Purchases
can be made using a chip-enabled terminal or by swiping the card rather than
filling out a paper cheque.
Ø Safety: You don't have to carry cash or a Cheque book. Debit cards are protected by a
four digit pin number that you set yourself. This pin is needed to make any
purchase with your debit card.
Ø Readily accepted: When
out of town (or out of the country), debit cards are usually widely accepted
(make sure to tell your financial institution you’re leaving your city; to not
have an interruption in service).
Ø It’s a Cash Card Too: Debit cards still have the
ability to give you cash, you can take them to an ATM and use them there to
withdraw the cash.
Insurance:
National Payment Corporation of India has introduced Insurance cover in
case of accidental death or permanent disablement of Rs 1 Lac for Non-Premium
cards (RuPay Classic) and Rs 2 Lac for Premium cards (RuPay Platinum) to
eligible RuPay card holders. The RuPay Insurance programme will continue for
financial year 2016-17, i.e. from April 01, 2016 to March 31, 2017.
QUESTION 3: Can I use my debit card if I have not used it for long?
ANSWER: Yes. It may however require activation. Please check the
forwarding letter that came with your debit card. Please
check your Bank website.
QUESTION 4: How do I generate a PIN ?
ANSWER: Banks provide PIN by
mail, which is either dispatched by bank to the cardholder address. Some banks
also offer Green Pin facility online. Banks also facilitate change of PIN
to suit your requirements.
QUESTION 5: What are the recent steps taken for promoting debit card payments?
ANSWER: Some of the recent initiatives towards popularizing Debit card usage
are:
Ø MDR (Merchant
Discount Rate) which a merchant (Shopkeeper) pays the Bank for POS transaction
are reduced to zero on debit cards till 31th, December 2016.
Ø Excise duty
payable on acquisition of POS machine which was earlier 16.5% has
been waived till 31st March 2017.
QUESTION 6: What should you do if a shop asks you for an additional amount for
use of your debit card?
Answer: As per the norms prescribed by card networks, shops should not ask for
any additional amount called surcharge or convenience fee. You can refuse
to pay an additional amount for use of your card and register complaint to your
bank on its website or otherwise.
QUESTION 7: Can one refuse to pay additional amount as banks have waived their
charges on one of debit cards till 31stDecember 2016.
Answer: Although all banks have waived MDR up to Dec
31, 2016, customers are not required to pay additional amount even after that if
demanded by the shopkeeper, as this is to be paid by the shopkeeper.
QUESTION 8: Why should Merchant encourage card use?
ANSWER: Merchant are benefitted to encourage debit card transaction as:
Ø Cost of Digital transaction is lower than handling
Cash.
Ø Deposition of cash in bank is not required as the
amount will be automatically credited to account.
Ø Credit History is created for the merchant which
will help him in taking more support from banks and other financial initiatives
of government time to time.
Ø Manual reconciliation is not required at merchant
side. He can always refer to his account.
Ø Accepting payment cards can enable merchants to increase their revenues
Ø Increased sales: Cards enable consumers to make quicker and easier
payments.
Ø Better customer service: Electronic payments offer customers more flexible
payment options - faster checkout times for customers and a more efficient way
of paying. Also, innovations such as Equated Monthly Instalment (EMI) payments,
allow consumers the ability to purchase and take possession.
*****
DSM/KA
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