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Debit Card – Types, Features, Benefits, How it Works

Home Debit Card – Types, Features, Benefits, How it Works

Debit card is a type of payment card that is directly linked to your savings and current bank account. It allows you to access funds in bank accounts to withdraw cash from ATMs, make online and offline purchases and perform contactless payments via POS terminals. Unlike credit card, while using debit card, the amount is immediately deducted from your bank account, and you use your own money instead of borrowing it. You can use your ATM/debit card both domestically and internationally, depending upon the card variant.

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Updated: 10-07-2025 11:01:59 AM

8 Best Debit Cards in India July 2025

Below listed are some of the best debit cards in India from leading banks for you to explore and find one that suits your needs.

ATM/Debit Cards Daily ATM Limit Daily Shopping Limit Best Feature
HDFC Easyshop Platinum Debit Card Rs. 2 Lakh Rs. 5 Lakh 1 cashback point on every Rs. 200
SBI Platinum International Debit Card Rs. 1 Lakh Rs. 2 Lakh 2 reward points per Rs. 200
HDFC Millennia Debit Card Rs. 50,000 Rs. 3.5 Lakh 2.5% cashback points on all online spends
ICICI Coral Debit Card Rs. 1 Lakh Rs. 5 Lakh 2 reward points on every Rs. 200
SBI IOCL Debit Cards Up to Rs. 40,000 Up to Rs. 2 Lakh Up to 6 reward points for every Rs. 200 spent on IOCL outlets
Kotak 811 debit card
 Rs. 25,000 Up to Rs. 1 Lakh Discount and cashback offers on popular brands
SBI Global International Debit Card
 Up to Rs. 40,000 Up to Rs. 75,000 2 SBI Rewardz Point for every Rs. 200 spent
Axis Bank Platinum RuPay Debit Card
 Rs. 40,000 Up to Rs. 2 Lakh Up to 20% off at partner restaurants

Note: The daily ATM withdrawal and shopping limit updated as of July 2025.

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How Does a Debit Card Works?

A debit or ATM card works along with your savings or current account. Thus, with every swipe or withdrawal using your debit card, the money is directly deducted from your bank account. Here is how to use a debit/ATM card.

At ATMs: Swipe/Insert your card into the ATM machine> Choose language> Type of your account- Savings/Current >Choose between ‘Cash withdrawal’, ‘Statement’ or ‘Balance Enquiry’ >Enter your 4-digit PIN > Enter the amount > Click on Proceed> Collect Cash

At POS (Point of Sale): Tap (for contactless transactions), swipe or insert your card into the card reader machine >POS operator will enter the transaction amount > Enter four-digit PIN > Click on Enter

Online: At an authentic online portal, enter your debit card number, date of expiry, name of cardholder, and CVV number> Enter the OTP received on your registered mobile number.

Features & Benefits of a Debit/ATM Card

Below listed are some of the key features and benefits of a Debit/ATM card:

  • Debit/ATM card is a safe and secure option and is a good alternative for cash because it reduces the risk of fraud, theft, and misuse
  • Debit/ATM cards are easy to carry, can be handled easily, and can be conveniently utilized while traveling in comparison to cheque books, or cash
  • With a huge number of ATM machines available all around, ATM/Debit cards offer both the ease of instant cash and the provision of merchant transactions at Point of Sale (PoS) terminals
  • Debit cards also help in keeping a track of your spending. Regular email and SMS alerts with the details of transactions made through debit card helps in maintaining a record of your expenditures
  • Using debit cards ensures that you spend responsibly because the permissible limit of spending depends upon the money in your account. Recorded transactions make the task of maintaining budget and money management much easier
  • Using debit cards for purchase is also a rewarding experience because of its features like cashback offers, bonus points, free insurance coverage along with a range of redeeming options for the points accumulated

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Debit Card Fee & Charges
Top Debit Card Issuers in India
Pros and Cons of a Debit Card
Do’s & Don'ts of a Debit Card
Comparison between Debit Card and Credit Card
Best Credit Cards in India for July 2025
Quick Links to Manage Your Debit/ATM Card
Debit Card FAQs

Debit Card Fee & Charges

ATM/Debit card fees & charges may vary across cards and banks. Here are some common fees and charges on debit cards:

  • Annual Maintenance Charge (AMC): This is a yearly fee charged for the usage of debit cards. It usually ranges from Rs. 150 to Rs. 1,500 and varies as per the bank’s policies and terms and conditions. However, in cases where debit cards are issued along salary accounts, annual maintenance charges are generally nil. Read more on Annual Maintenance Charges on Debit Cards
  • Card Replacement Fee: This fee is charged for replacing your ATM/Debit card with a new one. Few banks like HDFC charge no fee in case of physical damage but charge a fee of Rs. 200 for the lost card. Other banks like SBI charge somewhere between Rs. 100 – Rs. 300 for their various cards in case of both physical damage and card loss
  • Duplicate PIN or regeneration of PIN Fee: In case you forget your debit/ATM card PIN, a duplicate PIN generation cost of free
  • Cash Withdrawal Charges: Private and public sector banks have different policies for levying charges based on the number of transactions. Transactions made on the same bank’s ATM are usually free, however, a certain limit per month is defined for free transactions from other banks’ ATMs. Above the free transaction limit, bank charges Rs. 23 per transaction
  • International Transaction Charges: Charges for cross currency markup, debit card balance check, and cash withdrawal using your debit card in foreign countries are levied for every transaction. These charges may be percentage based or a flat transaction fee
  • PoS Fee: No extra fee is charged for making purchases through your debit card. However, for fuel-based transactions, usually an extra surcharge at the rate of 1% is levied.

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Pros and Cons of a Debit Card

Pros Cons
Safer to carry in comparison to cash Fewer rewards/cashback/lounge access/ insurance benefits in comparison to credit cards
Saves you from debt-trap Does not give additional purchasing power over and above the funds in your account
Easy to avail Limited milestone/welcome/renewal benefit
Limited fee & charges Does not help in building credit score

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Do’s & Don'ts of a Debit Card

Do’s:

  • Immediately report the loss of your card to the issuer, in case you lose your debit card, to prevent fraud
  • Keep a track of your emails/SMS, so that any fraudulent transaction is discovered easily
  • Authenticate each transaction by entering PIN/OTP or giving signatures and completing the entire transaction
  • Set up SMS alerts from your bank, listing details of each of the transactions made on any of the purchases. This will help you track your debit card spends
  • Check your account statements at regular intervals for tracking how much and where you have been spending

Don’ts:

  • Don’t disclose your ATM/debit card PIN over social media, phone, or email. It is advisable to memorize your PIN, instead of writing it down at random places
  • Don’t use unsafe online platforms, for online shopping or other transactions. Always do it through a portal that has secure online payment symbols, and on a website that has the authentic 2-step verification process. This is necessary to prevent the leak of debit card credentials to unreliable sources
  • Don’t cause any physical damage to your Debit card. The magnetic stripe or the chip in your debit card can be destroyed by being exposed to sharp objects or magnetic materials

Comparison between Debit Card and Credit Card

Debit Card Credit Card
When you use your debit card, funds are deducted from your savings/current account When you use your credit card, you borrow funds from your card issuer
You can spend only up to the balance available in your linked bank account You can use your card as per your credit limit
Debit cards are usually offered along your salary/current/savings account You can apply for a credit card with any issuer even without holding a bank account with the issuer
Offers limited rewards and cashback benefits Extensive rewards and cashback benefits in comparison to a debit card
EMI facility is limited, as per the vendor-bank agreement Credit Cards offer EMI facility on transactions above Rs. 1,500, in general
Does not impact credit score Impacts credit score directly, thus can help in improving credit score
ATM/Debit card offer higher cash withdrawal limits Credit cards offer additional benefit such as lounge access, lost card liability, etc

You should apply for a debit card if you need a card to access funds in your account, without anticipation of additional benefits such as rewards, cashback, lounge access, etc. However, if you want to earn rewards and cashback across all your transactions, and need a source of immediate funds, then having a credit card is a better choice.

Debit Card Tokenization

As per the new RBI guidelines, with effect from October 1, 2022, merchants, payment gateways and e-commerce platforms will no longer be able to save your card information. Card information, saved on these platforms will be replaced with ‘tokens’, that could be used for making payments. Though not compulsory, if you don’t opt for tokenization, you will be required to enter your card details every time you want to make a transaction. To know more, click here.

Best Credit Cards in India for July 2025

HDFC Diners Club Black Metal Edition Credit Card

hdfc-diners-club-black-credit-card
4/5

Joining fee: ₹10000

Annual/Renewal Fee: ₹10000

Unlimited airport lounge access for primary and add-on members

High base rewards rate of 3.33% with 5 reward points per Rs. 150 spent

Travel
Lounge Access
Reward Points
Check Eligibility

Product Details

  • Up to 10X reward points on SmartBuy and 2X on weekend dining with up to 1:1 redemption ratio
  • Annual memberships of Club Marriott, Amazon and Swiggy One on joining
  • Low forex markup fee of 2% and renewal of annual complimentary memberships on Rs. 8 lakh annual spends
  • 10,000 reward points on spending Rs. 4 lakh or more in a quarter
  • 6 complimentary golf games in a calendar quarter
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Axis Bank Reserve Credit Card

axis-bank-reserve-credit-card
3.5/5

Joining fee: ₹50000

Annual/Renewal Fee: ₹50000

Unlimited domestic & international lounge visits via Priority Pass

Low forex mark-up fee of 1.5% with 2X reward points on international spends

Travel
Lounge Access
Reward Points
Check Eligibility

Product Details

  • Up to 30 EDGE reward points for every Rs. 200 spent
  • B1G1 offer on BookMyShow tickets with up to 5 offer tickets per month
  • ITC Culinaire, Accorplus, Club Marriott & EazyDiner Prime memberships & offers on Postcard & Oberoi hotels
  • 50 free golf rounds every year across select golf courses in India
Know More

Axis Atlas Credit Card

atlas-credit-card
4/5

Joining fee: ₹5000

Annual/Renewal Fee: ₹5000

2.5X EDGE Miles on Travel spends

Up to 12 international and 18 domestic lounge access every year

Travel
Lounge Access
Reward Points
Check Eligibility

Product Details

  • Up to 2,500 bonus EDGE Miles as welcome benefit
  • Up to 5 EDGE Miles per Rs. 100 spent on travel
  • Redeem EDGE Miles at value of 1 EDGE Mile = 2 Partner Points
  • Milestone benefits of up to 5,000 EDGE Miles
  • Up to 5,000 EDGE Miles as milestone benefit
Know More

HDFC Regalia Gold Credit Card

hdfc-regalia-gold-credit-card
4/5

Joining fee: ₹2500

Annual/Renewal Fee: ₹2500

5X reward points on Nykaa, Myntra, Marks & Spencer and Reliance Digital

4 reward points per Rs. 150 across all retail spends

Travel
Shopping
Reward Points
Check Eligibility

Product Details

  • Complimentary Swiggy One & MMT Black Elite Memberships
  • Gift voucher worth Rs. 2,500 on the payment of joining fee
  • 6 complimentary international lounge visits & 12 complimentary domestic airport lounge visits per year
  • Marks & Spencer/ Reliance Digital/ Myntra/ Marriott vouchers of Rs. 1,500 on Rs. 1.5 Lakh quarterly spends
  • Flight vouchers worth Rs. 5,000 on annual spends of Rs. 5 Lakh
Know More

YES Bank Paisabazaar PaisaSave Credit Card

paisabazaar-paisasave-credit-card
4/5

Joining fee: ₹0

Annual/Renewal Fee: ₹499

3% Cashback Points on e-commerce spends, max. 5,000 points/month

Unlimited 1.5% Cashback Points on all other spends, including UPI

Cashback
Online Shopping
Check Eligibility

Product Details

  • Earned Cashback Points can be redeemed as statement credit in 1:1 ratio at zero redemption fee
  • 1.5% cashback on online spends made after reaching the monthly capping
  • Renewal fee waived off on reaching Rs. 1.2 lakh annual spends
  • 1% fuel surcharge waiver, up to Rs. 250 per month, on all fuel spends worth Rs. 500 to Rs. 3,000
Know More

Cashback SBI Card

cashback-sbi-card
4/5

Joining fee: ₹999

Annual/Renewal Fee: ₹999

5% cashback on all online spends

1% cashback across all offline spends

Cashback
Online Shopping
Check Eligibility

Product Details

  • 5% cashback across all online spends with no merchant restriction
  • 1% cashback across all offline spends
  • Earn cashback of up to Rs. 5,000 per month
  • Renewal fee reversed on spending at least Rs. 2 lakh in a year
  • 1% fuel surcharge waiver of up to Rs. 100 per month
Know More

HSBC TravelOne Credit Card

travelone-credit-card
3.5/5

Joining fee: ₹4999

Annual/Renewal Fee: ₹4999

2x rewards on all travel bookings

Up to 20% off on Zomato, Yatra, EaseMyTrip, etc.

Travel
Reward Points
Check Eligibility

Product Details

  • Cashback worth Rs. 1,000; Postcard Hotels voucher worth Rs. 3,000 and 3 months EazyDiner Prime membership on card activation
  • 4 reward points on every Rs. 100 spent on flights, travel aggregators, and in foreign currency
  • 2 reward points on every Rs. 100 spent on other spending categories
  • Value of 1 reward point = 1 Air Mile or Hotel Point
  • 10,000 bonus reward points on spending more than Rs. 12 lakh in a year
  • 6 domestic and 4 international airport lounge access per year
  • 4 rounds and 12 golf lessons per year, capped at 1 per month
  • Up to 20% off at duty-free shopping via the AdaniOne app or website
Know More

Axis Bank SELECT Credit Card

select-credit-card
4/5

Joining fee: ₹3000

Annual/Renewal Fee: ₹3000

Up to 20 EDGE Reward Points per Rs. 200 spent

10,000 EDGE Reward Points worth Rs. 2,000 as welcome benefit

Shopping
Reward Points
Check Eligibility

Product Details

  • Buy 1 get 1 movie ticket of up to Rs. 250 on District app, once a month
  • Flat Rs. 500 off per month on BigBasket on minimum spend of Rs. 2,500
  • Rs. 200 off on Swiggy, twice a month, on minimum spend of Rs. 1,000
  • Up to 12 complimentary international lounge visits in a year & 2 domestic lounge visits per quarter
  • Up to 12 complimentary golf rounds in a year
Know More

Tata Neu Infinity HDFC Bank Credit Card

tata-neu-infinity-hdfc-bank-credit-card
3.5/5

Joining fee: ₹1499

Annual/Renewal Fee: ₹1499

Up to 10% value-back on Tata Neu spends

8 domestic and 4 international Priority Pass lounge access per year

Shopping
Co-branded
Check Eligibility

Product Details

  • 5% NeuCoins on all non-EMI spends at Tata Neu & its partner brands
  • Additional 5% NeuCoins on select spends at Tata Neu app/website
  • 1.5% NeuCoins on UPI, non-Tata brand and merchant EMI spends
  • 1,499 NeuCoins after the first spend within 30 days of card issuance
  • Low forex markup fee of 2%
Know More

IndianOil RBL Bank XTRA Credit Card

indianoil-rbl-xtra-credit-card
4/5

Joining fee: ₹1500

Annual/Renewal Fee: ₹1500

Up to 8.5% savings on IOCL fuel spends

1,000 Fuel Points on reaching Rs. 75,000 quarterly spends

Co-branded
Reward Points
Fuel
Check Eligibility

Product Details

  • Save 7.5% as 15 Fuel Points per Rs. 100 spent on IOCL fuel
  • 1% fuel surcharge waiver on fuel spends of Rs. 500 to Rs. 4,000
  • 2 Fuel Points per Rs. 100 spent on other categories; 1 Fuel Point = Rs. 0.50 for IOCL fuel purchase
  • 3,000 Fuel Points as welcome benefit on making 1st card spend of min. Rs. 500 within the 1st 30 days
  • Annual Fee waived of on Rs. 2.75 lakh annual spends
Know More

Debit Card FAQs

Q. What is CVV in a debit card?

CVV stands for Card Verification Value which is a unique number for every user. It is printed on the back side, and is required for online transactions.

Q. How to check airport lounge access on a debit card?

To check airport lounge access benefits on your debit card, you must check the features on the bank’s website or contact the debit card customer care.

Q. How to activate a debit card?

You can activate your debit card online through netbanking or the mobile banking app. Alternatively, you can use phone banking or visit the nearest branch or ATM.

Q. How to apply for a debit card online?

In general, a debit card is issued along with your savings or current account. However, if you wish to upgrade to another credit card, you can apply for it through the bank’s website or through the nearest branch.

Q. How to check debit card EMI eligibility?

To check EMI eligibility on your debit card, you can contact the bank’s customer service. Check out more details here.

Q. What are the benefits offered on a debit card?

A debit card offers benefits such as high cash withdrawal limit, high daily shopping limits, free ATM withdrawals, and easy access to funds in your bank account. Apart from these, many debit cards also offer benefits across multiple categories such as cashback, lifestyle, travel, shopping, and insurance among others.

Q. What to do if a debit card is lost or stolen?

In case a debit card/ATM Card is lost or stolen, you must report the same to the bank/ issuer immediately. You can contact the bank via their mobile application, NetBanking, or via the customer care number. You must ensure that you get your card blocked immediately. Various banks also offer the SMS or Missed call service for blocking a debit card.

Q. What is a virtual debit card?

Virtual debit cards are e-cards or Electronic debit cards, created specifically for e-commerce or retail transactions, in most cases. However, the limit on these cards is specified and limited, in comparison to physical debit cards.

Q. Which banks offer virtual debit cards?

Several banks offer virtual debit cards, to promote digital payments. Some of the top banks offering these cards include SBI, Kotak Mahindra Bank, Bank of Baroda, and Union Bank of India, among others.

Q. What is Debit Card Tokenization?

Debit card tokenization is the replacement of card details saved with merchants with a unique code called, ‘token’. As per the RBI guidelines, effective October 1, 2022, debit card information will not be saved on multiple portals. To complete a transaction you either need to get your card tokenized or enter the complete card details every time you make a transaction.

Q. How do I get my debit card token?

You can get your debit card tokenization done at the time of making a payment to any preferred merchant app or website. Here, you will be required to enter your debit/ATM card details, such as card number, name of cardholder, expiry date, and CVV. On entering your details, you can select the option “Save card as per RBI guidelines”. To authenticate, you need to enter the OTP received on your registered number, after which the merchant won’t be able to save the card details, and your debit card token will be generated for making payments.

Q. Are Debit and ATM cards the same?

Yes, the sole purpose of an ATM card is to withdraw funds at an ATM, which can be done via a debit card as well. Thus, ATM and debit cards are the same.

Q. How do I apply for a Debit/ATM card online?

You can apply for a debit card online, by visiting the issuer’s website or by using the mobile banking application. Note that, to apply for a new card, you need to open a savings, current or salary account with a bank, so that you get a card along. However, if you wish to upgrade your debit card with your existing bank account, you can contact your bank directly.

Q. What is the difference between a debit card and a credit card?

With a debit card, you use the funds you have in your existing bank account, but with a credit card, you borrow funds from your card issuer and pay it back before the due date.

Q. Is it better to use a debit or credit card?

Before using any card, you must analyze your needs and financial position. You can use a debit card if you don’t have a credit card, but want to make a purchase that is within the availability of funds in your bank account. However, in case you are in immediate need of funds, you can use your credit card, up to the specified credit limit. Using a credit card for your expenses, will get you more rewards and cashback, and will also help you improve or build your credit score if you make your card payments in a timely manner.

Q. Why is my ATM card not working?

Your ATM card may not be working due to reasons such as insufficient account balance, exceeded daily withdrawal limit, wrong ATM PIN, damaged or hot-listed card, or inoperative bank account.

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