SBI launches pre-paid card for unbanked

by CXOtoday News Desk    Apr 24, 2013

ATM

Reaching to the unbanked is one of the primary concerns of bankers. Traditional channels have largely been ineffective perhaps because of logistical reasons. In a bid to reach to the majority of the unbanked, the State of Bank has recently launched a pre-paid card.

The Times of India reported that the pre-paid card will act as an alternative to providing bank accounts to the unbanked with minimum ‘know your customer’ norms. SBI is giving thrust to the pre-paid card concept via businesses and employers whose workers do not hold a bank account.

Launching the card in Mumbai, RK Saraf, deputy managing director, SBI, said an introduction by the employer and a basic proof of address would suffice. Scope of misuse in money laundering would not be there as the maximum amount would be limited to top up of Rs 10,000 with a monthly cap of Rs 25,000, said the report.

The card, which was launched in collaboration with Visa, is for crediting salaries and supports funds, cash withdrawals from any ATM and electronic transactions, for which a credit card is otherwise used.

The move is significant as the card can be used in any of the 26,000 ATMs of the bank groups and also view transactions through an online portal. The card will have a one-time cost of Rs 102.

“The card will have all the safety features of a credit card,” Saraf told TOI.