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Current Payment Structure Causing Rs. 3,800 cr. Loss: SBI Report
October 03, 2017
Indian Banks are facing a loss of whopping Rs. 3,800 crores for running the current payment structure, a recent SBI report says.
After the note-ban, the point of sale (PoS) terminals grew exponentially to 28 lakhs till July from 13.8 lakh in March last year. However, factors like lack of incentives for the merchants to accept card payments, small merchant discount rates (MDR), poor telecom infrastructure is causing a huge loss for the banks.
According to the SBI report, the average annual loss for card transactions at PoS terminals is about Rs 4,700 crore which adjusted with revenue gain becomes Rs. 3,800 crores.