MUMBAI, India - Transactions made with both debit and credit cards in India increased 103 percent, to $4.2 billion, in 2002. This includes both cash withdrawals and purchases made through such cards.
According to a report in the Business Standard, the increase makes India the fastest-growing market in Asia Pacific. The comparative figure for 2001 when the Indian market rose by 69 percent was $2.27 billion.
Citing the Nilson Report, the report indicates that India is now the 11th largest card market in Asia Pacific.
However, total purchases through cards -- debit and credit -- in India rose by only 31 percent to $1.802 billion.
Total debit card volumes were $3.5 billion of which MasterCard volumes were at $1.115 billion with the remaining volumes with Visa. Purchases made with debit cards in the country were much lower at $103.6 million.
According to the Business Standard, debit cards in the country are still primarily used as ATM cards for cash withdrawals rather than for purchases, especially by customers of public sector banks. Many banks are now issuing debit cards in lieu of ATM cards. however.
The major issuers of Visa Electron (debit) cards are ICICI Bank and HDFC Bank. For MasterCard's Maestro (debit card), the major issuers are State Bank of India and Citibank.
