Digital payment hiting banks, loss of 3,800 crores

Since the ban on bank, the bank has been constantly increasing the number of Point of Sale (POS) terminals and machines for cashless transactions.

This has given a boost to the campaign of digital payment of Modi Government. According to the SBI report, after the ban on debit and



credit card transactions, there is an increase in the transaction. In October, 2016, there was a transaction of 51,900 crore rupees. That same level has reached 68,500 million by July 2017. Apart from this, cashless transactions of Rs 89,200 crore were highest in December 2016.

For imposing POS terminals, banks have to bear the cost of infrastructure charges. It has to spend in other things, including setting up of POM terminals, clearing, settlement, training of traders, managing terminal and supplying them. Banks have income from merchant discount rate and month rental, which is very low.