NEWS & ADVICE : CREDIT CARDS
Credit card Usage declines
By Ankit Sharma
Oct 22, 2009
Print    Email    RSS   

In the wake of economic crisis and stricter regulations by credit card issuers, credit card usage has declined considerably.

The count of active credit cards in India in August had decreased from 243.67 lakh in April to 219.49 in August. This decline is being attributed to the global meltdown.

A senior official from India Cards council, a body of all Mastercard issuing banks said that a large number of companies, especially in IT sector, were involved in lay-offs and salary cuts.

He said "While those people, who were thrown out of jobs, or got less pay, slashed their credit card spending, the cost-cutting measures of corporations had a demonstration effect on the rest of the economy. People got scared and altered their spending habit."

Monthly spending through credit cards is also decreasing. In August, total spending through credit cards was Rs 4,858.34 crore as against Rs 5,801.48 crore in the same month last year, a decline of 16.25 per cent.

An official of a private sector bank said that there was an increase in defaults to over 15 per cent last year from around 5 per cent in the previous years. Most of the banks are planning to recover the dues of defaulters from their salaries.

In order to lessen losses due to credit card defaults ICICI bank has decided to block all credit cards of an issuer in case he defaults on one.

The credit card spending has gone down by 12 percent. As indicated by RBI's data, till August last year, the amount of credit card transactions was Rs 27,834 crore but it started sloping down towards the end of the last financial year. The total amount of the transactions for the entire fiscal was only 65,355 crore.

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Safety tips to use plastic money online
Lost Your Credit Card? Here’s What You...
The ABN AMRO One Card
A chronicle of excesses by loan recovery...
Credit card finance charges in India: A...


HUSBAND-WIFE problem specialist babaji +919057337835...
HUSBAND-WIFE problem specialist babaji +919057337835...
HUSBAND-WIFE problem specialist babaji +919057337835...
6070930045365665 ATM pin
ChAnDiGaℛh escorts services O9855660911~ CaℒL...
Amritsar Escorts Services 09872495586 , Escort...

NEWS THIS WEEK
New Credit Card for Football lovers by IndusInd bank Jan 30, 2015
A Regional Rural Bank Rolled out Junior Rupay Debit ATM cards for students Jan 29, 2015
Banks opened 58.37Lacs account successfully under PMJDY in Bengaluru Jan 28, 2015
SBI with Ezetap launched Chota ATMs in Kerala Jan 27, 2015
SBI bank to pay a compensation of Rs 3lacs to a senior citizen Jan 23, 2015
News Archive