Debit card EMI can save your cashflow; earn interest on savings balance, says Akhil Handa of BoB

Online transaction have become day-to-day activity and technological inventions every other day is changing the way common man pay their bills. Most of the investments today are done in no time through net banking, digital wallets, unified payments interface (UPI) and other online apps. One technological innovation that's paving gathering stream is paying equated monthly installments (EMIs) via debit card.

In India, there are about 83 crore debit card holders against only 5 crore credit card holders. To improve its digital services in online transactions, Bank of Baroda (BoB) has come up with ‘On The Fly Debit Card EMI’ where the customers can swipe their debit card to convert the lump sum purchase transaction into easy installments.

Akhil Handa, head of Fintech at Bank of Baroda, in an exclusive interview said, “With debit card EMI, the customer earns savings balance interest on his balance and is entitled to the cashback in the range of 2 percent to 16 percent. In credit card, the limit is blocked to the extent of purchase, whereas in a debit card you are given a loan to the extent of your purchases without blocking the savings account balance.”