Why being the leader of debit cards in India is bad for SBI

The State Bank of India controls the biggest chunk of India's debit card market:. It also had the largest network of ATMs and CRMs (Cash Recycling Machines) spread across the country.  And ATM withdrawals make up more than 80% of annual debit transactions so SBI seems to be clearly winning. 

But being the market leader of debit cards in India is actually turning out to be a problem for the public lender. Debit cards might be ahead of credit cards in terms of circulation but they are dying a slow death in the Indian market. In fact, a lot of industry experts agree that debit cards, in their current physical form, may actually become obsolete in the coming decade. 

So by being the biggest player in this market that is fading away, SBI is also taking the largest beating from its decline. But instead of cutting its losses, SBI is still doggedly trying to save this dying product. 

Why?

Tune in to find out.

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