Govt's push for digital payments making banks suffer Rs 3,800 cr loss: SBI
While the government is making every possible thing to push digital payments, the banking sector is suffering from huge bad loans.
According to report by State Bank of India (SBI), the banks are suffering a loss of Rs 3800 crore annually following the sharp rise in the number of point of sale (PoS) terminals after demonetisation.
The number of point of sale (PoS) terminals post demonetisation increased from 13.8 lakh in March, 2016 to 28.4 lakh in July, 2017.
On an average banks are installing 5,000 PoS per day. This has resulted in increase in debit plus credit cards transactions at PoS from Rs 51,900 crore in October 2016 to Rs 68,500 crore in July 2017, with peak reaching in December 2016 to Rs 89,200 crore.
Earlier, the State Bank of India chairman Arundhati Bhattacharya had asked the government for compensation in some form to offset the losses the bank suffered due to demonetisation.