Debit Card Incentives, to be next marketing Mantra for Banks
Now, the Cash Withdrawal from any ATM is free, Banks with smaller ATM Network, are beginning to feel the pinch of the inter-connect fee. So, they are forced to explore new avenues, to keep the customers happy, and also continue to keep their costs low.
As I have already said in my earlier Post http://prashantnepayments.blogspot.com/2009/03/all-atm-transactions-pan-india-to-be.html, 60% of the Cash drawn, is used in Locations, wherein Debit Cards are also accepted.
Hence, Banks have sought clarifications from Reserve Bank of
It is pertinent to note, that Banks have sought this clarification, only after the introduction of the free cash withdrawals i.e after
The relevant Reserve Bank of
QUOTE
Offering of Incentive Schemes by Banks to Promote Usage of Debit Cards
Query
A few banks have been approaching RBI seeking approval for offering incentive schemes to debit cards holders to promote debit card usage. Whether prior approval is required from RBI for offering such incentives schemes?
Response
There is no objection to banks offering incentives to promote debit card usage without prior approval of RBI provided no element of lottery or chance is involved in such incentive schemes.
DBOD Mail box clarification dt
This clarification is of recent nature, i.e