The leading lending institution of the country – State Bank of India has approached the reserve bank with the proposal to roll out a PIN free debit card. The bank wanted to launch a card through which the customers can make the transactions without entering the PIN.
Currently to use the card for any purpose the customer is required to punch the PIN, bank wanted that for the small transactions i.e. for the limit up to rs 2,000 the entering of PIN to use the card must be abolished.
Before making this plan functional the bank is testing such contactless card at the metro stations in Mumbai and Chennai. Through this the bank wants to eliminate the need of entering the PIN for making small transactions of up to Rs 2,000. The Apex bank has yet to approve this proposal.