SBI launches contactless debit and credit card with Rs 1 lakh fraud cover

MUMBAI: State Bank of India ( SBI), the largest issuer of cards, has launched contactless debit and credit card which comes with a cover of Rs 1 lakh fraud cover. The contactless cards uses near field technology ( NFC) that enables users to make payments by waiving or tapping the card near the contactless reader instead of swiping or dipping it.

The country’s largest bank, SBI, will upgrade all its existing 2.20 lakh point of sale (PoS) machines to NFC technology. The bank currently has 5000 NFC enabled machines and it plans to launch 10,000 new PoS which will accept contactless cards.

“We will tie-up with campus, hospitals and corporate for card,” said SBI chairman Arundhati Bhattacharya speaking to media while launching sbiINTOUCh card at Starbucks. She was optimistic that the once RBI gets comfortable with NFC technology it would increase the minimum limit from Rs 2000. The bank has tied up with Shoppers Stop, Reliance Retail, Big Bazaar and Starbucks.

The bank has said that the contactless card will come with emergency replacement facility anywhere in the world and will have a fraud liability cover of Rs 1 lakh. “The NFC technology makes the contactless cards very secure as the card never leaves your hand thereby reducing the risk of card loss and fraud. The customers can tap or wave the card at the POS machine enter the pin and complete the transaction to pay at busy locations,” said bank said in a statement to media.

SBI is the country’s largest issue of debit card and the third largest issuer of credit card after HDFC Bank and ICICI Bank. As on December 2014, SBI has issued as many as 14.7 crore debit cards and 30 lakhs credit cards.