ATMs and PoS terminals hamper card usage
Q. Which of the following are reasons for adverse impact on card use in India?
1) Less ATMs
2) Less number of cards
3) Less Point of Sales terminals- Published on 10 Mar 16a. 1, 2
b. 1, 3
c. 2
d. All of the above
ANSWER: 1, 3
- As per RBI, growth of card acceptance infrastructure like automated teller machines (ATMs) and point-of-sale (PoS) terminals is not on a par with that of card issuance.
- Debit cards vastly outnumber the volume of credit cards issued in the country. Further, a high number of debit cards have been issued in recent times under the Prime Minister’s Jan Dhan Yogana, especially to customers in rural areas and smaller towns.
- Cash continues to be the predominant mode of payment as it appears to be “costless” in comparison to the visible costs associated with card/electronic payments.
- Some of the factors that have inhibited growth in the acceptance infrastructure are lack of adequate and low-cost telecom infrastructure and lack of incentive for merchants for acceptance of cards, among others.
