SBI launches prepaid cards for small business employees
Updated: Apr 26, 2013 04:21:47pm
Mumbai, Apr 26 (KNN) State Bank of India has launched pre-paid cards as an alternative to providing bank accounts to the unbanked with minimum 'know your customer' norms targeted at small enterprises employees, students, contract labourers or blue-collar workers who do not have a bank account.
The card is applicable to employees of small and medium enterprises whose monthly salary is not more than Rs 10,000.
"The new product will bring a large number of workers, contract labourers and dependent family members, who don't have access to the basic banking facilities within the ambit of financial inclusion," SBI Deputy Managing Director (corporate strategy and new businesses) R K Saraf told reporters here yesterday.
The minimum amount that can be loaded on the card at a time is Rs 100 and the maximum, Rs 10,000. The limit for a single transaction is Rs 10,000, and it has a monthly limit of Rs 25,000, the bank said.
The card will be available at all SBI branches and can be used for cash withdrawal at any ATM of SBI and its associate banks free and at other banks’ ATMs for a nominal fee.
It can also be used at point-of-sales (POS) terminals at merchant establishments and on websites accepting Visa cards for e-commerce transactions. It can also be used as an add-on card for existing account holders on the Visa network.
The card can even be issued to someone who does not have a regular bank account. But a valid photo proof, identity proof and introduction by a know-your-customer (KYC)-compliant person is a mandate to avail the offer.
Saraf also said that liberalised KYC norms as approved by the Reserve Bank of India would be applicable for beneficiaries. “Special permission has been given to us for this,” he added.
Only one card will be issued per person. However, against a fully KYC-compliant account, a maximum of three cards can be issued. This does not include a current account.
For companies, one card per employee can be issued. The card issuance charge is Rs 102 for 10 years and the reloading charge is Rs 10. However, there will be no charge if reloaded through corporate internet banking, the SBI said. Bosch is the first company to get the card.
SBI is in talks with several other corporates to issue the card, said Saraf.
He also said that the card would help the public sector lender to garner low cost deposits (CASA). The security features of the product he said were sound with less transaction risk. The bank is currently in talks with corporates, SMEs, for use of these cards for their employees.
The launch of the card was SBI’s contribution to have lesser cash in the economy. In terms of their other offerings, the SBI group had issued two million debit cards every month, with SBI contributing 1.5-1.6 million.
According to Saraf, the total debit card holders of SBI group stand at 136 million, with 110 million belonging to SBI. (KNN)
The card is applicable to employees of small and medium enterprises whose monthly salary is not more than Rs 10,000.
"The new product will bring a large number of workers, contract labourers and dependent family members, who don't have access to the basic banking facilities within the ambit of financial inclusion," SBI Deputy Managing Director (corporate strategy and new businesses) R K Saraf told reporters here yesterday.
The minimum amount that can be loaded on the card at a time is Rs 100 and the maximum, Rs 10,000. The limit for a single transaction is Rs 10,000, and it has a monthly limit of Rs 25,000, the bank said.
The card will be available at all SBI branches and can be used for cash withdrawal at any ATM of SBI and its associate banks free and at other banks’ ATMs for a nominal fee.
It can also be used at point-of-sales (POS) terminals at merchant establishments and on websites accepting Visa cards for e-commerce transactions. It can also be used as an add-on card for existing account holders on the Visa network.
The card can even be issued to someone who does not have a regular bank account. But a valid photo proof, identity proof and introduction by a know-your-customer (KYC)-compliant person is a mandate to avail the offer.
Saraf also said that liberalised KYC norms as approved by the Reserve Bank of India would be applicable for beneficiaries. “Special permission has been given to us for this,” he added.
Only one card will be issued per person. However, against a fully KYC-compliant account, a maximum of three cards can be issued. This does not include a current account.
For companies, one card per employee can be issued. The card issuance charge is Rs 102 for 10 years and the reloading charge is Rs 10. However, there will be no charge if reloaded through corporate internet banking, the SBI said. Bosch is the first company to get the card.
SBI is in talks with several other corporates to issue the card, said Saraf.
He also said that the card would help the public sector lender to garner low cost deposits (CASA). The security features of the product he said were sound with less transaction risk. The bank is currently in talks with corporates, SMEs, for use of these cards for their employees.
The launch of the card was SBI’s contribution to have lesser cash in the economy. In terms of their other offerings, the SBI group had issued two million debit cards every month, with SBI contributing 1.5-1.6 million.
According to Saraf, the total debit card holders of SBI group stand at 136 million, with 110 million belonging to SBI. (KNN)
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