Bengaluru: Banks may start issuing Near Field Communication (NFC) enabled contactless Credit and Debit Cards as Union Finance Ministry in a letter asked Chief Executives of Banks to issue such cards. This step is taken to increase card payments for different types of transactions including merchant transactions.
According to the report published in Economic Times, in the letter, the Ministry asked banks to issue NFC enabled contactless cards to new customers. Such cards should also be issued to existing customers whenever new cards are issued to them.
It may be mentioned such cards can be used for a variety of purposes including transactions at metro, railways, buses etc.
Here is how these cards work
Customers have to just tap their cards instead of swiping or dipping it into PoS machine. Mr. TR Ramachandran, Group Country Manager at Visa said that contactless payment is one of the most secure payment methods.