UBI in pact with Mastercard; eyes 15-lakh cards by FY10-end
State-owned Union Bank of India on Friday sealed a deal with global payments company Mastercard and said it is hopeful of issuing over 15 lakh debit cards by the end of this financial year.
Mumbai: State-owned Union Bank of India
on Friday sealed a deal with global payments company Mastercard
and said it is hopeful of issuing over 15 lakh debit cards by
the end of this financial year.
"The bank has a target of issuing over 1.5 million (15
lakh) debit cards with MasterCard logo by March 2010. We aim
to focus more on the rural merchant-clients with this tie-up,"
Union Bank General Manager Transaction Banking Pravin K Bansal
told reporters here.
The lender has a similar tie-up with VISA-- another
multinational card association. Its total debit card base
stands at 41 lakh at present.
The bank expects to achieve Rs 140-150 crore fee income
from its transaction banking segment this fiscal, Bansal said.
"The tie-up with Master Card will enable our customers
to have access over 9 lakh ATMs globally," Bansal said.
As a first step, the bank will launch four variants of
debit cards- Classic (having withdrawal limit of Rs 25,000
per day), Silver (Rs 40,000), Gold (Rs 60,000) and Platinum
UBI has seen an increase in the volume of transactions
handled through electronic channel, which moved from 21 per
cent to 28 per cent year-on-year, he said.
The lender plans to further increase this volume to 35
per cent that will help it to reduce costs substantially.