10 motivations as to why Customers should choose Debit Card Transactions than ATM Cash Transactions.

 

  

Reserve Bank of  India, vide its communication, RBI / DPSS No. 711 / 02.10.02 / 2008-2009 dt.23/10/2008, had decided that, to start with banks shall reimburse to the customers the amount wrongfully debited within a maximum period of 12 days from the date of receipt of customer complaints. 

         However, as  Reserve Bank of India, was still receiving a large number of complaints that this period was not being adhered to. Hence, RBI  vide  its communication No. RBI/2008-2009/ 380 DPSS No.  1424 / 02.10.02 / 2008-2009 Dt.11/02/2009, has advised banks to strictly adhere to the above time-limit of 12 days. Non-adherence of the time limit would, attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

 

        The above communication, from RBI, throws fascinating challenges to Banks. One way out, for Banks, is to encourage its customers, to move from ATM Cash Withdrawals, to Debit Card Transactions. It is observed, that 50% of the Cash Withdrawals, is again pumped back to the system, through Cash Transactions, at various business establishments. This is because, of low awareness amongst Bank customers, on the benefits of Debit Card Transactions.

         Banks need to understand the benefits of Debit Cards over ATM Cash Transactions, and formulate efforts to educate the customers.

 Here are 10 motivations as to why Debit Cards are to be favored over Cash or Checks.

01)   They are convenient.

02)   They are easy to use.

03)   They can be an effective budgeting tool.

04)   Money Management and Control. Debit transactions are deducted directly from a checking account and recorded in one place on a monthly statement.  This allows cardholders to easily track where every penny is going and better spend within their means.

05)   Security. Debit cards offer better protections than cash or checks, and Zero Liability means consumers pay nothing for fraudulent purchases.

06)   Acceptance- Debit cards are accepted in more than a crore of locations in India.

07)   International Debit cards can be used at millions of locations worldwide, and can be used over the phone and on the Internet.

08)   Convenience. Debit card transactions are quick and simple, getting you out of the store faster; automatic bill pay via debit eliminates worries about missed payments.

09)   Rewards. More debit cards are also offering rewards so purchases earn points toward travel, merchandise or even cash. 

10)   Most importantly, you have don’t have to worry about, amount being debited, and cash not being dispensed. This will trim down your stress levels also!!!!!!!!