State Bank of India launched its debit card in November 2002. A debit card used by customers to buy goods and services is paid directly out of their bank accounts as soon as the purchase is made. SBI proposes to convert all its ATM cards into debit cards.
SBI debit card is widely used in the market by charging Rs 50 per card per year as annual fee. The market has seen an ever increase in the number of users due to high acceptance and low merchant fee attached with the debit card.
In terms of usage the debit cards are more popular. In India Debit cards spends are growing . In debit cards there can be no defaulters as the money paid to the merchant is from the customers account. The risk for the merchant and for the bank is minimum.
For the users debit card is convinent mode of purchase and no need to worry about the monthly statement and late payment fee and other issues.
SBI card is popular card for the users due to its network and trust of the account holders. SBI annual low fee of Rs 50 per annum will promote many customers to use the card.