Amidst the corona crisis, banks have decided to issue Electronic Cards to their account holders. For which the central bank Reserve Bank and India (RBI) have soon approved the grant of bank customers. For what will be applied to the electronic card?
Will be released to these customers:
The Reserve Bank of India has allowed all overdraft account holders to have electronic cards. The card will be issued by the bank for overdraft holders who are in the overdraft account bank under a personal loan by the bank.
RBI says:
On electronic cards, RBI says, "as per the instructions given in July of the year 2015, banks have been given a mission to issue debit cards to customers with savings bank current account and this facility has not been given to cash, credit loan account holders, but now the bank is ordering the issuance of electronic cards to customers with overdraft accounts."
Released for Limited period:
As per the instructions given by RBI, it has also been clarified that for customers who will be issued electronic cards according to an overdraft account. This facility will be issued to them for a limited period, i.e., these cards will not be made for more days than the validity of the facility. At the same time, this card can be used for transactions to be made within India.
What is overdraft:
The financial facility provided by the banks is called an overdraft. Under this facility, customers get the facility to withdraw money even if they do not have balance in the account. Interest in this money is also levied by the banks, and the bank has fixed the limit of overdraft for each customer. That means the customer can withdraw money in the prescribed limit. In addition, it also has to be repaid to the customer for a stipulated period. To avail of this facility, the customer needs at least a document.
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