This Smart pre-paid card can be refilled to the desired amount at any of the IDBI branches. And goods can be purchased from designated shops using the card anywhere in the country.

Mr Ravi Khot, head-sales and distribution, IDBI Bank, said that many new technology banks had introduced debit cards, but this is the first time a Smart pre-paid card is being introduced in the country. The cards are being used experimentally in a city in Uttar Pradesh and Maharashtra, he added.

Initially, the bank may be charging Rs 250 as annual fee for regular use of the pre-paid card because the technology is new and was out sourced.

But in due course, as the subscriber base for the card increases, the bank may think in terms of providing the service free. Pre-paid Smart cards can be considered the electronic equivalent of travellers cheques, the only difference being that the electronic card is capable of storing much more information about the account holder in a microprocessor chip. Smart card is also different from the debit card in that the participating institutions need not have online connectivity with the bank for conductiing transactions. What is required is only a Smart-card reader in the authorised shop or business establishment for the system to work. Since the card is password protected, the possibility of misuse of a stolen card is also ruledout.

Meanwhile, IDBI Bank is in talks with two or three banks including Standard Chartered for co-branding of credit cards. The bank is also in talks with two or three firms including CRISIL, Infosys for providing more value-added Internet banking services.