Custom Search

Wednesday, August 7, 2013

State Bank to expand ‘point of sale’ terminals

State Bank of India is going all out to promote electronic transactions.

India’s largest bank plans to deploy over 1.25 lakh point-of-sale (POS) terminals in the next 18 months at various merchant outlets and counters at branches across the country.

POS terminals help customers carry out cashless transactions at merchant outlets by swiping credit/ debit cards on the POS machine.

Further, the terminals also facilitate withdrawal of cash (up to a maximum of Rs 1,000 a day according to existing RBI guidelines) using debit cards at designated merchant outlets.

Reducing risk

Cash withdrawal at POS terminals at merchant outlets will help the merchants reduce the risk and costs associated with handling cash and also earn a small commission.

The terminals that SBI is planning to roll out will enable transactions using credit, debit and pre-paid cards. Besides, they will also support signature based, chip based and personal identification number based cards.

In its annual report, SBI said “In order to create a comprehensive electronic infrastructure in the country, activate the debit cards on PoS terminals, increase visibility and tap the huge potential available in the market, Merchant Acquiring business is being conducted by the bank.”

More customers

As on June-end SBI, which has over 20 crore customers and issued about 14 crore debit cards, had 86,617 POS terminals. The banking system as a whole had deployed 10,31,734 POS terminals as at June-end.

New private sector banks such as ICICI Bank (2,56,294), HDFC Bank (2,45,842) and Axis Bank (2,20,616) together accounted for 70 per cent of the total POS terminals in the country.

As at March-end 2013, alternate channels, such as ATMs, Internet banking, mobile banking and POS terminals, accounted for 35.7 per cent of SBI’s total financial transactions against 33.3 per cent as at March-end 2012.

As at June-end 2013, SBI accounted for 29 per cent of the country’s total 1,23,705 ATMs in the country.

Source: Financial Express


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site