Benefits of Debit Card Activation – FAQs


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Benefits of Debit Card Activation – FAQs
Here are given some of the major benefits of Debit Card activation in the form of Frequently Asked Questions (FAQs) and their Answer format:

QUESTION 1: Why it is important to have active debit cards?

ANSWER:   Debit Card makes your payments much more convenient and secure through an   electronic payment facility directly from your bank account. Debit card can be used for purchases online or at shops by directly debiting your Bank account. Debit cards can also be used to withdraw cash from an ATM. 


QUESTION 2:  How is a customer benefited by debit cards?

ANSWER:  Major benefits to customers are

Ø      It is more convenient to carry a small, plastic card instead of a bulky Cheque book or a large amount of cash.
Ø      Easy to obtain:  Once you open an account most institutions will issue you a debit card upon request.
Ø      Convenience: Purchases can be made using a chip-enabled terminal or by swiping the card rather than filling out a paper cheque.
Ø       Safety: You don't have to carry cash or a Cheque book. Debit cards are protected by a four digit pin number that you set yourself. This pin is needed to make any purchase with your debit card.
Ø      Readily accepted: When out of town (or out of the country), debit cards are usually widely accepted (make sure to tell your financial institution you’re leaving your city; to not have an interruption in service).
Ø      It’s a Cash Card Too: Debit cards still have the ability to give you cash, you can take them to an ATM and use them there to withdraw the cash.

Insurance: National Payment Corporation of India has introduced Insurance cover in case of accidental death or permanent disablement of Rs 1 Lac for Non-Premium cards (RuPay Classic) and Rs 2 Lac for Premium cards (RuPay Platinum) to eligible RuPay card holders. The RuPay Insurance programme will continue for financial year 2016-17, i.e. from April 01, 2016 to March 31, 2017.

QUESTION 3: Can I use my debit card if I have not used it for long?
ANSWER:     Yes.  It may however require activation.  Please check the forwarding   letter that came with your debit card.  Please check your Bank website.

QUESTION 4: How do I generate a PIN   ?

ANSWER:  Banks provide PIN by mail, which is either dispatched by bank to the cardholder address. Some banks also offer Green Pin facility online.  Banks also facilitate change of PIN to suit your requirements.

QUESTION 5:  What are the recent steps taken for promoting debit card payments?

ANSWER: Some of the recent initiatives towards popularizing Debit card usage are:
Ø      MDR (Merchant Discount Rate) which a merchant (Shopkeeper) pays the Bank for POS transaction are reduced to zero on debit cards till 31th, December 2016.
Ø      Excise duty payable on acquisition of POS machine which was earlier 16.5%  has  been waived  till 31st March 2017.

QUESTION 6:  What should you do if a shop asks you for an additional amount for use of your debit card?

Answer: As per the norms prescribed by card networks, shops should not ask for any additional amount called surcharge or convenience fee.  You can refuse to pay an additional amount for use of your card and register complaint to your bank on its website or otherwise.

QUESTION 7: Can one refuse to pay additional amount as banks have waived their charges on one of debit cards till 31st December 2016.

Answer: Although all banks have waived MDR up to Dec 31, 2016, customers are not required to pay additional amount even after that if demanded by the shopkeeper, as this is to be paid by the shopkeeper.

QUESTION 8:  Why should Merchant encourage card use?

ANSWER: Merchant are benefitted to encourage debit card transaction as:
Ø  Cost of Digital transaction is lower than handling Cash.
Ø  Deposition of cash in bank is not required as the amount will be automatically credited to account.
Ø  Credit History is created for the merchant which will help him in taking more support from banks and other financial initiatives of government time to time.
Ø  Manual reconciliation is not required at merchant side. He can always refer to his account.
Ø  Accepting payment cards can enable merchants to increase their revenues
Ø  Increased sales: Cards enable consumers to make quicker and easier payments.
Ø Better customer service: Electronic payments offer customers more flexible payment options - faster checkout times for customers and a more efficient way of paying. Also, innovations such as Equated Monthly Instalment (EMI) payments, allow consumers the ability to purchase and take possession.

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Government of India takes policy decisions to encourage cashless/electronic transactions; Asks the Government employees to take the lead and maximize the usage of Debit Cards for personal related transactions instead of cash
In the recent years, advancements in banking technology, progress in mobile banking and innovative technologies to facilitate digital payments have enabled large number of small denomination transactions to be handled smoothly in electronic mode. The Government of India has taken policy decisions encouraging cashless/electronic transactions.
In its endeavour on moving towards the electronic payments, the Central Government Ministries/Departments have been crediting the salary and other payments for the majority of its employees electronically, direct into the designated bank accounts of the employees. Given the progress made in banking technology, it is assumed that each employee would be in possession of a Debit/ATM card linked to his/her bank account. Ensuring and encouraging Government Employees to maximise the usage of Debit cards for personal related transactions instead of cash would go a long way serving with the employees serving as ‘ambassadors’ for the digital push and also motivate, encourage the general public in taking-up the cause.
All Ministries/Departments are requested to encourage their employees to make use of Debit Cards for personal related transactions instead of cash. Ministries/Departments should liaise with their accredited banks and set-up special camps to facilitate obtaining of and ensure that all its employees are in possession of Debit Cards. Ministries/Departments may also issue similar advisories to their attached/subordinate offices, PSUs, Autonomous Bodies etc.

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Any Payment above Rs.5,000 to Suppliers, contractors, grantee/loanee institutions etc by Government Departments to be now made through e-Payment to attain the goal of complete digitization of Government payments.
In order to attain the goal of complete digitization of Government payments, the Ministry of Finance, Government of India has again reviewed the existing limit of Rs. 10,000/-(Rs. Ten Thousand only) prescribed regarding e-payment to Suppliers etc. It has now been decided to lower this threshold limit from Rs. 10,000 to Rs. 5,000 (Rupees Five Thousand only).The last review in this regard was made only in August, 2016.
Accordingly, all the Ministries/Departments of the Government of India have been now directed by the Ministry of Finance to ensure with immediate effect that all payments above Rs. 5000/- (Rupees Five Thousand only) to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advises only.


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