Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    Digital Banking Notes 2 PDF

    Uploaded by

    afroz shaik
    The document provides an overview of the history and evolution of cards, including credit cards and debit cards in India. It discusses the first conceptualization of transactional cards in a 1890 novel, the introduction of charge plates by individual stores in the 1920s, the first bank-issued charge card in 1946, the introduction of cards that could be used across multiple stores in 1950 by Diners Club, the launch of the first interbank card system by Bank of America in 1958, and the establishment of Visa and Mastercard in the late 1970s. It then covers the launch of the first credit cards in India in 1980, the growing popularity and acceptance of debit cards in the 1990s, and the increasing use of online payments in

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Digital Banking Notes 2 PDF

    Uploaded by

    afroz shaik
    2K views7 pages
    The document provides an overview of the history and evolution of cards, including credit cards and debit cards in India. It discusses the first conceptualization of transactional cards in a 1890 novel, the introduction of charge plates by individual stores in the 1920s, the first bank-issued charge card in 1946, the introduction of cards that could be used across multiple stores in 1950 by Diners Club, the launch of the first interbank card system by Bank of America in 1958, and the establishment of Visa and Mastercard in the late 1970s. It then covers the launch of the first credit cards in India in 1980, the growing popularity and acceptance of debit cards in the 1990s, and the increasing use of online payments in

    Original Description:

    Digital banking

    Original Title

    Digital-Banking-Notes-2-PDF

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides an overview of the history and evolution of cards, including credit cards and debit cards in India. It discusses the first conceptualization of transactional cards in a 1890 novel, the introduction of charge plates by individual stores in the 1920s, the first bank-issued charge card in 1946, the introduction of cards that could be used across multiple stores in 1950 by Diners Club, the launch of the first interbank card system by Bank of America in 1958, and the establishment of Visa and Mastercard in the late 1970s. It then covers the launch of the first credit cards in India in 1980, the growing popularity and acceptance of debit cards in the 1990s, and the increasing use of online payments in

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views7 pages

    Digital Banking Notes 2 PDF

    Uploaded by

    afroz shaik
    The document provides an overview of the history and evolution of cards, including credit cards and debit cards in India. It discusses the first conceptualization of transactional cards in a 1890 novel, the introduction of charge plates by individual stores in the 1920s, the first bank-issued charge card in 1946, the introduction of cards that could be used across multiple stores in 1950 by Diners Club, the launch of the first interbank card system by Bank of America in 1958, and the establishment of Visa and Mastercard in the late 1970s. It then covers the launch of the first credit cards in India in 1980, the growing popularity and acceptance of debit cards in the 1990s, and the increasing use of online payments in

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 7

    https://learningsessions.

    in/
    https://iibf.info/
    9915771469aj@gmail.com

    Note: Though we had taken enough care to go through the notes, we advise everyone
    to update oneself with the latest information through RBI website and other
    authenticated sources.

    November 2021

    1
    https://learningsessions.in/
    https://iibf.info/
    9915771469aj@gmail.com

    DIGITAL BANKING IIBF NOTES:

    CARDS: OVERVIEW AND BRIEF HISTORY

    The Cards in Theory:


    The mention of transactional cards was first found in history back in 1890 in novel
    ‘Looking Backward’ by Edward Bellamy. The term credit card was mentioned 11 times
    in there citing it as a card that can be used for purchasing goods by spending a citizen’s
    dividend from the government, instead of borrowing.

    Card by businesses for their individual store:


    Charga-Plates: They were considered to be the first stepping stone in of transactional
    cards history. They first came into existence in US in year 1928 & were offered by
    merchants to their regular customers. The plates were specific to the individual stores &
    could only be used in those specific stores. Whenever a user made purchase, manual entries
    were made to maintain the data.

    First card by a bank: It was National Bank of Brooklyn in New York that issued a charge
    card in 1946. It released a “Charge-It” program between bank customers & local
    businesses. The businesses were required to deposit their sales slips to the bank, which in
    turn were used to bill their customers.
    Card across multiple business stores: In 1950, Diners Club introduced the Diners Charge
    Card providing the option to shop at several different stores by using the same card.
    Customers were sent a monthly statement of their expenses, that they were then required
    to pay. A service charge to the credit card issuer was charged in the range of 3% to 5%
    of the T. Sales Value.
    Interbank card: In 1958, Bank of America issued the Bank Americard credit card that
    was renamed to ‘Visa’ in 1976 when Bank of America collaborated with other banks who
    also wanted to offer card services but without having to build the entire system by
    themselves.

    2
    https://learningsessions.in/
    https://iibf.info/
    9915771469aj@gmail.com

    MasterCard: In 1979 came the Mastercard brand that was formerly called the Interbank
    Card Association and Master Charge.
    International cards: Both VISA and MasterCard set up ground rules and policies on world
    level around the issuing, usage, payments, etc on cards of different banks.
    These cards are now facilitating the merchants to accept payments not just from the same
    city or state or even country but also internationally! Today, MasterCard controls 25%
    of the global payments while Visa controls 61.5% of the payments market share.

    CREDIT CARDS IN INDIA:


    In 1980, the Central Bank of India (CBI) launched the first bank credit card & in the same
    year Andhra Bank followed its footsteps (Visa brand).
    In 1988, Vijaya Bank introduced MasterCard with the key differentiation that Vijaya
    Bank allowed its customers to withdraw cash from their branches. The eligibility for
    credit card was entirely based upon the income of the consumers.
    Between 1988 to 1993, a lot of other PSU banks also started issuing credit cards to their
    customers. It was the time when ATMs also started increasing.
    Grabbing this opportunity, Indian banks started issuing DEBIT CARDS to their
    customers. This provided convenience to the customers to withdraw money from their bank
    accounts whenever they wanted to from an ATM machine.

    This industry gained popularity with its wider acceptability at shops & better product
    offerings in a competitive landscape. Now a days, banks offer bundled insurance benefits,
    reward point systems, zero liability in terms of frauds, etc.

    A significant number of Indians were aware of credit and debit card products by late
    1990s. Then, the time came for the trend of online payments but that was limited by internet
    penetration and availability of cards. After IRCTC (2002), MakeMyTrip (2005), and
    Flipkart (2007) came into the market, people started availing online services by using
    internet banking services & cards.

    3
    https://learningsessions.in/
    https://iibf.info/
    9915771469aj@gmail.com

    By 2010, credit & debit cardholders had started making online payments frequently. But it
    was in the next decade that became a key turning point for the Indian digital payment
    systems with the launch of Rupay by the National Payment Council of India (NPCI) in
    2012.
    Rupay came with the vision of starting Indian brand for debit, credit and prepaid cards.
    Rupay gained traction in tier 2 and tier 3 cities by 2018, and today, Rupay Debit Cards
    have higher penetration in India than Visa and MasterCard.

    VARIOUS TYPES OF CARDS


    Cards can be classified on the basis of their issuance, usage and payment by the card
    holders. There are 4 types of cards offered by the banks:
    1. Debit Card: These cards are linked to a bank account.
    2. Credit Card: These are generally issued by banks & some of non-banks, but can
    also be issued by other approved entities.
    3. Prepaid Card: These cards are issued by banks as well as non-banks against the
    advance paid by the cardholder and the value stored in such cards can be issued in
    the form of cards or wallets.
    4. Electronic Cards.

    4
    https://learningsessions.in/
    https://iibf.info/
    9915771469aj@gmail.com

    20% DISCOUNT OFFER


    You can also avail the Festival Offer of 20% Discount that is running on our Combo
    packs of CAIIB/JAIIB/BANK PROMOTIONS/IIBF CERTIFICATIONS using:
    Code: LSPRO

    Digital Banking: STUDY MATERIAL that includes:

    • Latest chapter-wise video course


    ✓ English + Hindi Language
    • Offline Downloadable Videos
    • Memory Recalled Questions
    • Tests:
    ✓ Compete Mock Tests
    • FB updates

    The study Material will also include the previous year’s papers of Digital Banking
    in the LATEST Study Material for 2021-2022
    The Course on Digital Banking is tutored by Mr. Ashish Jain, who is an ex-banker
    with 7 years of experience in Credit department. He has delivered 900+ hours of
    online classes and has rendered services to 1,25,000+ candidates so far.
    With his vast expertise in the banking field and being trusted by more than
    1,25,000 of candidates makes him the most suitable to learn the course from!
    He believes in making his teaching - the best and quality experience for his
    students and that too at the most affordable price.

    5
    https://learningsessions.in/
    https://iibf.info/
    9915771469aj@gmail.com

    TO GET ACCESS TO MORE MATERIAL ON DIGITAL BANKING,


    PLEASE HIT ON THE LINKS BELOW:

    ARTICLE LINKS:
    DIGITAL BANKING: What is Digital Banking in Detail
    DIGITAL BANKING: VIDEO MATERIAL
    DIGITAL BANKING: Syllabus, Study Material

    To know more about the courses or packages, you can either visit our website or
    download our app on the Play Store.

    You might also like