Demonetisation: Debit cards surpass credit cards as primary mode of payment

New Delhi: Following the withdrawal of Rs 500 and Rs 1,000 banknotes, the usage of debit cards at merchant establishments have seen a good surge, surpassing credit cards as primary mode of payment, as per a news paper report.

 

A report in the Times of India said that the usage of debit card has jumped to 60 percent after demonetisation.

Usage of debit cards issued by small public sector lenders like Oriental Bank of Commerce and Punjab & Sind Bank, has gone up nearly five times, the TOI reported.

Post demonetisation, many banks have said that the downloads of the banks' Unified Payments Interface, which facilitates peer-to-peer payments on the mobile phones has also witnessed an increase.

As per the TOI report, public sector banks reported debit card transactions valued at Rs 29,339 crore this year against Rs 19,664 crore worth transactions recorded by debit cardholders of private banks.