Now credit card transactions would now be similar to debit card transactions. The difference is that debit card lets a person spend the amount available in his savings account and credit card transactions will now be linked to the amount available in the respective fixed deposit account.
The new rule is in step with strict measures undertaken by banks for giving new credit cards.
Credit card eligibility norms have been made strict by banks in numerous ways. E.g. if a person’s income is below Rs 30,000 a month, he doesn’t get a credit card. Reference to earlier credit history is also very important nowadays.
Lifetime cards have been discontinued. A range of fees such as joining and annual maintenance etc are now being charged.
An HSBC Bank official said, “We are issuing cards on a selective basis as it is an unsecured portfolio”.
ICICI Bank official said, “ICICI Bank issues cards to both customers and non-customers, subject to fulfilment of credit appraisal norms. We have a full suite of cards products, one of which is a Secured Card (which is for customers with an FD)”.
A top banker said: “Now, for many banks, it is more a question of being in the card segment rather than making profits.”
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