Introduction to Banking
Module Units
- 1. Banking
- 2. Deposit Accounts
- 3. Loan Accounts
- 4. Mistakes To Avoid While Opening A Bank Account
- 5. Selecting A Suitable Savings Bank Account
- 6. Fund-based And Non-Fund based Financial Services Offered By Banks
- 7. Fixed Deposits
- 8. Recurring Deposit
- 9. Different Types Of Fixed Deposits In India
- 10. Deposit Insurance System
- 11. Circumstances Leading To Closure of Bank Accounts
- 12. Banking Transaction
- 13. Branch Banking And Online Banking
- 14. Transactions Available Through Online Banking
- 15. How To Start Online Banking
- 16. ATM Transactions
- 17. Different Types of Money Remittance Services Offered By Banks
- 18. Cheque Truncation System (CTS)
- 19. Keeping A Bank Account Secure
- 20. Safety Rules And Guidelines
- 21. Fictitious Emails, SMS And Phone Calls
- 22. Forged Notes
- 23. Ponzi Schemes
- 24. Borrowing Money
- 25. Types of Bank Loans
- 26. Credit Cards
- 27. How to use a credit card?
- 28. Importance Of Maintaining A Good CIBIL Score
- 29. Problem Of Excess Debt
- 30. Strategies To Avoid Excess Debt
- 31. Managing Money
- 32. Nomination Facility In Bank Accounts
- 33. Procedure For Making A Claim
- 34. Digital Money
- 35. Forms Of Digital Money
- 36. Debit Cards
- 37. Digital Payments
- 38. E-Wallets
- 39. Types of e-wallets
- 40. Unified Payments Interface
- 41. Benefits Of UPI System
- 42. Conclusion
Debit Cards
A debit card is a plastic card issued by a bank that is directly related to the customer’s bank account. The card can be used to make purchases either by swiping the same physically or using the same online. They eliminate the requirement to carry cash or physical cheques to make purchases. To eliminate the confusion of using multiple cards, banks usually issue a Debit cum ATM card to its customers so that customers can use the same card for making purchases as well as withdrawing money from ATM machines.
Since debit cards are linked to a bank account, they can be used only up to the amount lying as balance in the same account. Additionally, many debit cards have a daily limit for each transaction such as Kotak Mahindra Bank’s #PayShopMore Debit Card has an ATM withdrawal limit of ₹ 40,000 and a purchase limit of ₹ 200,000 per day. This is primarily fixed to secure the card against fraudulent usage.
Usually, each bank has a variety of debit cards and the kind of debit card offered depends on the type of account held with the bank. Kotak Mahindra Bank has 14 different kinds of debit cards for its customers.
Although the primary function of debit cards is to ease transactions, most banks offer innumerable facilities attached to debit cards to make the card propositions more attractive for the customers. Such facilities may include reward points, airline mileage, inbuilt insurance attached to the card, airport lounge access, personal accidental death coverage, and many more. For example, Kotak Mahindra Bank offers complimentary insurance of up to ₹ 55 Lakhs with its Platinum Debit Card, access to a large number of shopping deals with its #PayShopMore Debit Card, and Air Accident Insurance with its World Debit Card. It has several other such attractive propositions attached to each of its 14 types of debit cards.
While banks offer debit or credit cards, they are not the primary issuers of cards. The card is issued by an issuing organization which is a financial services corporation. VISA and Master Card are the two most famous financial services corporations across the world who issue cards. Rupay is an India based domestic card payment scheme launched by the National Payments Corporation of India. In India, most cards are issued by VISA, Master Card, and Rupay.
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