Indian Banks Seek Govt Help To Address Chip Shortage

Indian banks have approached centre to seek help with the shortage of chips which has affected card issuance in the country.

Banks have approached the government through the Indian Banks’ Association (IBA) to address the issue of chip shortage in the country for the banking industry. The card issuance by the banks has slowed down significantly in the recent times as China ordered shutdowns to curb Covid spread recently. 

The supply shortages have been global in nature and are expected to continue for some time. This has prompted the local vendors to hike prices which has further put a large shadow on the issue.

According to media reports, the present chip shortage has affected card issuance to the newer Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders the most.