- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
‘Banks may risk losing ₹3,800 cr. from cards’: (The Hindu)
Context
As per the new report, the Centre’s digital payments push, mainly card payments through Point of Sale (PoS) machines, may leave already capital starved banks bleeding by Rs. 3,800 crore annually.
What is the cause?
Post November’s note-ban, the government has pushed banks into installing millions of PoS machines to encourage online payments.
This resulted in increase in debit plus credit cards transactions at PoS from Rs. 51,900 crore in October 2016 to Rs. 68,500 crore in July 2017.
The estimate was for OFF-US transactions, the aggregate annual loss for card transactions at PoS terminals is around Rs. 4,700 crore.
However, the net revenue gain per annum from ON-US transactions at PoS would be around Rs. 900 crore only.
Thus, the total annual loss to the industry is of around Rs. 3,800 crore.
