Month: June 2012

The Card Payment Industry in India is pretty small compared to the CASH economy. In 2011, it was Rs 140,000 Cr or USD $28 Bn. The finance minister in his budget speech had envisaged the promotion of electronic payment systems with incentives. The RBI swiftly acted on this move and sent a notification to all the CEOs of Banks operating in India pointing out the discrepancy in Debit Card Vs Credit Card spend by consumers.

Though Debit Cards at 26.37 Mn outnumbered Credit Cards 17.67 Mn, consumers were not spending enough on Debit Cards but rather chose to withdraw cash for spending needs.

Another practice most commonly seen in

Standard Chartered Bank, India’s 5th Largest Credit Card Issuer, has taken the process of Approving Credit Card Applications Instant and Online. StanChart offers a range of credit cards from entry level Gold Rewards to Manhattan Platinum to Visa Infinite Card, a total of 9 different cards to cater to varying needs of Indian consumers.

What is StanChart Credit Cards Instant Online Approval ?
A consumer who is sure that he doesn’t have any delinquent loans or default accounts and is residing in one of the cities that are qualified by the bank can apply for StanChart Credit Card and get Approval in-principal. The Systems internally

Credit Card is one of the easiest and convenient ways to Shop or Pay for Goods and Services. The industry has evolved but with the Finance Ministry moving towards Cashless transaction Society, much needs to be done to Regulate the Card industry in India. We’d like to point out some of the deficiencies in the current Credit Card eco-system which RBI can address.

• Issue Most Important Terms and Conditions in English, Hindi and Local Language of the State [Local Language is Absent for HDFC, Kotak, ICICI and SBI MITCs which were examined] Print them in legible fonts rather than fine-print

Read moreRBI Needs More Regulations on Credit Card Issuers

Most Consumers ignore to affix their signature on the reverse of the Credit Card. Here is an instance where Mr. Rahul did not affix his signature and put a note “See My Id” (Merchant has to ask for Valid Identification). Rahul misplaced /lost his credit card only to have realized it a day later within which all the damages had been done. Rahul’s card was used for shopping an expensive Watch and then used to pay a Restaurant Bill, together a fraudulent transaction to the tune of Rs 30,000.

Rahul sent us an e-mail asking for how can he get out of this situation ? What are his Rights as a Credit Card Holder when a fraudulent transaction occurs ?