The card has been designed for those who don’t have a bank account and work in the informal sector
Priyanka Parashar/Mint
Axis Bank Ltd has launched the Axis Bank Suvidhaa Prepaid Card, in partnership with Suvidhaa Infoserve Pvt. Ltd, a payment management company with 80,000 retail outlets across the country. The card, which is on the MasterCard platform, has been designed for those who don’t have a bank account and work in the informal sector.
HOW IT WORKS
These cards are available at designated Suvidhaa outlets, and not at Axis Bank branches. You can open the account through an electronic know-your-customer (e-KYC) facility at the outlet; the authentication is by Unique Identification Authority of India (UIDAI). You need to give your Aadhaar number and do a biometric scan of fingers. Once authenticated and validated, the account is activated. You will get a prepaid card kit, which will have the personal identification number and the card. The card can be used to deposit, withdraw and remit money. Validity is five years.
For remittance, the cardholder will have to ask Suvidhaa to issue an add-on card, for the receiver. But money can be remitted only from a Suvidhaa outlet. After the money is deposited, details such as sender and recipient’s mobile numbers, and the last four digits of recipient’s card will be needed. On transfer, the recipient will get a one-time password, to be used to collect the money at a Suvidhaa outlet.
If you want to withdraw your own money, you can do so at any automated teller machine (ATM).
CHARGES AND LIMITS
Card issuance, annual fee and card reissuance cost Rs.100 each. Annual fee (and service tax) is charged from the second year. There is also a loading charge of 1% of the amount. For instance, on deposit of Rs.10,000, loading charge will be Rs.100. The first two transactions are free at an Axis Bank ATM; after that it is Rs.20 per transaction. Withdrawal from other-bank ATMs will be charged as per their rates. Collecting money from a Suvidhaa outlet will cost Rs.20 per transaction. There is no minimum deposit limits; the maximum is Rs.50,000.
MINT MONEY TAKE
Though this is an attempt to provide access to unbanked workers, the limited access, charges and other factors make the product difficult to use. Money can be deposited for remittance only from a Suvidhaa outlet. KYC is dependent only on Aadhaar.
Charges may be on the higher side. If a person chooses to use this card to remit, say, Rs.10,000, the first time it will cost Rs.100 for the card, and Rs.100 to send the money. Since the add-on card facility hasn’t started yet, the recipient will have to go to a Suvidhaa outlet, and pay Rs.20 to get the money. That means Rs.220 (and Rs.100 from the next time) to send Rs.10,000. There are more cost-efficient ways to remit money, and which have a wider reach. Also, if the card is lost and there is fraudulent activity, the bank nor Suvidhaa will be responsible.