COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

SBI launches payment card, calls it currency of modern India

State Bank of India introduced the SBI Card to prospective clients and business community in Bombay today.

Chairman M S Verma said that the card would soon emerge as the currency of modern India which could assist the Reserve Bank of India in curtailing the circulation of currency notes by promoting the usage of payment cards as an effective replacement for cash.

SBI plans to achieve a 30 per cent share in card business by the end of the year 2001 as the market is estimated to reach six million by that time. The card is available to any individual with a gross annual income of Rs 60,000 (Rs 75,000 for salaried persons) with joining fee of Rs 250 and an annual feed of Rs 500 only.

SBI has entered into two separate joint ventures with GE Capital of the USA for marketing and processing. The Visa card offers 50 days interest-free credit, free accident insurance cover for loss of life and cash access from designated SBI branches.

The marketing company, SBI Cards and Payment Services Limited focuses on the marketing and distribution of SBI cards, the processing company called GE Capital Business Processes Management Service Limited handles the technology and processing needs of SBI cards. SBI also signed exclusive agreement with Visa International for payment cards in India.

GE Capital's chairman and chief executive officer Gary Wendt said that GE would continue to deliver value-added financial products and leverage operational experiences for the benefit of Indian consumers as well as SBI customers. He expressed pleasure in introducing a payment product which meets the needs of a cross-section of Indian consumers, especially first-time card-users.

Besides joint ventures with SBI for payment cards, GE Capital also has partnership with HDFC for consumer finance and Maruti Udyog Limited for auto finance.

UNI

Business news