Debit and pre-paid cards can be used to replace cash and cheque-based transactions in India, according to a senior official from MasterCard Worldwide.
MasterCard world global products and solutions global executive, T V Seshadri, was quoted by The Economic Times as saying that these cards will be one of the electronic models for cash displacements and reduce cash and cheque-based transactions in the coming decade in the country.
According to Reserve Bank of India (RBI), around 700 million people in rural regions of India still do not have access to banking system.
MasterCard said since pre-paid mobile and cell phone networks have spread to remote areas in the country now, similarly the debit and pre-paid cards can reach to unbanked population in the country.
In addition to these, some government-led initiatives such as GIRO, an electronic bank- account deducting system for settling bills, Aadhar identification, and pre-paid mobile phone-linked transactions have started making the banking services available throughout the country.