RBI’s decision on positive digital transaction fees will lead to digital adoption: SBI CEO of the card
Rama Mohan Rao Amara, MD and CEO of SBI Card, said in an interview with CNBC-TV18 that the RBI’s proposal to place a discussion paper in the public domain and seeking consultations on streamlining digital transaction fees is positive. “Overall, it’s positive as long as it helps naturally push digital adoption and digital payments; this has a positive effect on the credit card industry in particular for SBI cards where we have always been the beneficiaries of the increase in digital. spending and the adoption of digital payments in terms of new card procurement as well as spending, ”he said.
In an effort to make digital transactions more affordable, the RBI announced on December 8 that it will soon release a discussion paper on the reasonableness of fees on transactions via the digital mode.
“We did not do any sensitivity analysis because the outlines of the changes are not visible. We do not even know if credit cards will continue to be exempt as in the past or if they are not exempt to what extent they are. will be. reduction etc. These are not yet known, “Amara said.” Having said that, I can assure you that our revenue base is well diversified. We don’t have some sort of predominantly single segment representing a major shade of revenue. So this keeps us in good shape and we are actually confident the business model is sustainable. If there is a significant change, there is an opportunity for us, at least as an issuer, to look into that. But I can’t comment beyond that because we don’t even know the extent of the change, “he added.
SBI Cards shares fell 2.1% to Rs 901.5 apex on BSE on late morning trading.