With innumerable cold calls made by the banks to their clients for take the credit cards , it looked quite clear to everybody that the credit card market would keep on rising in India.
But as per the new data released by Reserve Bank of India, this is not so. The data reveals that the use of credit cards has gone down in the country.
Besides the fall in the use of credit card, the plastic money is also not used widely in India.
Ashish Das,, an IIT- Bombay faculty who wrote a paper ‘Cashless payment system in India A roadmap’ said, ” Debit cards have had a slow start and their growth only took off in the last three years. On the other hand, credit cards grew faster since inception, with the growth turning negative in the latest year”.
From 2005 to 2008, there was a rise in the credit card business in India. The credit card market grew by over a crore during the 3 year period.
But after the financial crisis, things changed.
A top manager from HDFC bank said, “We have seen several customers surrender their credit cards. Increasingly, debit cards are gaining popularity. While the total business transacted by credit cards fell by 10% across India, the total amount of transaction with debit cards increased from Rs 18,547 crore to Rs 26,417 crore”.
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