First bank in India to introduce this facility
ICICI Bank today announced that it has introduced a debit card facility for customers availing the Loan Against Securities (LAS) from the Bank. The card is available on the Visa platform. It can be used by customers across all domestic merchant establishments to make seamless POS and online transactions like payments on e-commerce portals among others, using their sanctioned LAS amount.
ICICI Bank is the first bank in the country to launch the facility after the RBI allowing banks to issue electronic cards to customers who avail an OD facility, which is of the nature of a personal loan with no specific end-use restriction. The debit card will be issued to new customers who avail LAS and will be automatically renewed upon renewal of the LAS account. Customers get a digital debit card within one business day of availing LAS, which can be accessed on the Bank’s mobile app iMobile. Using this digital card, they can start making online transactions post enabling the functionality. They also get the physical card within seven business days. Existing customers of LAS will also get this card shortly.
Speaking on the initiative, Mr. Sudipta Roy, Head – Unsecured Assets, ICICI Bank said, “We at ICICI Bank always strive to enhance our customer’s convenience and make banking more accessible as well as hassle-free for them. This new facility aims to provide greater accessibility to our customers to their sanctioned loan amount and enables them to use it in a frictionless manner to meet their varied needs. Also, the card is another step forward in our endeavor to constantly harness the digital prowess of the bank to provide pioneering new facilities to our customers. We are delighted to be the first bank to implement this facility following the directive issued by the regulator. We believe that these new guidelines will make overdrafts more digital friendly and make the overall experience of the end-customer hasslefree and quick.”
Speaking on the initiative, Mr. TR Ramachandran, Group Country Manager, Visa, India & South Asia, said, “RBI’s directive allowing digital credentials for Overdraft Accounts has come at an opportune time as businesses attempt to bounce back from the pandemic. We are pleased to partner with ICICI Bank in launching this innovative Debit Card product linked to an overdraft account, which also forms an integral part of Visa’s endeavor to grow credit access in India. This product allows Visa cardholders the convenience to use their overdraft credit limit with ICICI for everyday purchases, across ecommerce and face to face merchants, seamlessly.”
Key benefits of the debit card include:
- Transaction limit: The card offers a maximum daily transaction limit of Rs. 3 lakh each for POS and online transactions.
- Digital card: The Bank provides a digital card to customers, which is made available on iMobile app within one business day.
- Automatic renewal: The card is automatically renewed upon renewal of the LAS account.
Source: Company Press Release