How to use SBI Click2Card + Who Should Apply using the Online Application ?

Earlier this month we covered SBI’s Plans on how to expand the Retail Credit Card portfolio. In continuation of the same strategy, SBI Cards has launched Click2Card Online Credit Card Application facility for prospective credit card consumers.

What is Click2Card e-Application ?
Like other banks, SBI wants to take the process of application and approval of credit cards online for customer convenience. Of-course, Paper-work like PAN Card, Know Your Customer will follow. The advantage here is if you are a high profile customer with good credit track record, chances are high that your application will be approved online. Currently you can apply online for any of the following cards, [Eligibility is not prescribed by SBI, we are doing it on our experience to choose the right one]

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What is the Profits Earned by Banks on Cash Advances Lending on Credit Cards in India ?

In the Previous Article, we have already discussed about the Cash Advances Market in India on various Metrics. Today we’d like to Highlight the Profits Indian Banks Make from the Cash Advances Segment of Credit Card [CC] Lending.

As already seen, the Cash Advanced on CC was Rs 1,259 Cr spread across 21.90 Lakh Transactions in FY 2011-12. Every Bank levies two types of fees on Cash Advances – 1] Transaction fees which is Rs 300 or 2.5% of the Amount Withdrawn, whichever is Higher and 2] Interest Rate from the Day when Cash has been withdrawn – 3% per month or more

The following Screenshots show the Cash Advance Transaction fees and APR on

Read moreWhat is the Profits Earned by Banks on Cash Advances Lending on Credit Cards in India ?

How Big is “Cash Advances on Credit Cards” Market in India ?

Authentic Data and Statistics on any consumer related market is a wealthy piece of information. After having done ton of correspondence, sometimes paid to the officers of bank, we have obtained data on the Cash Advances obtained by Consumers on their Credit Cards in India. Today we’d like to present to you the size of the market, average transaction and the profit the banks are making from cash advances.

Size of the Cash Advances Market for FY 2011-12
Indians withdrew cash of Rs 12595.86 Mn [Rs 1259.58 Cr] using their Credit Cards from various bank ATMs in 2,190,662 number of transactions; Thus the Average Cash Withdrawal transaction at ATM was of Ticket Size Rs 5749.79 rounded of to Rs 5750.

The Following Table Shows Monthwise Data of Cash Advance Withdrawal and No of Transactions in FY 2011-12

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HDFC + SBI Gets Aggressive on Credit Cards – SBI to Add 1 Mn Customers

HDFC Bank, is making most money from CASA & Retail Operations is extremely conservative in Handing out Credit Cards to customers and yet ranks at the top as Largest Issuer of Credit Cards in India with 5.7 Mn Credit Card Accounts with a net addition of 196,000 in June-12 Quarter. SBI Cards a JV of SBI and GE managed to add 96,000 accounts in June-12 quarter and the management is upbeat about Credit Card business as it wants to add another 900,000 accounts within the next 18 months.

SBI is witnessing growth in segments where the Annual Fees is low. It is pushing Platinum & Signature cards to HNIs / Corporates where value proposition is high.

SBI-GE Cards plan to issue around 50,000 cards

Read moreHDFC + SBI Gets Aggressive on Credit Cards – SBI to Add 1 Mn Customers

Requesting RBI for Unique Authorization(Approval) Code / Number on Credit Card Transactions

Nothing Really works well in India because the Systems Designers are not really passionate about their job nor delivering world class systems with excellence in customer satisfaction.

During the course of being a free adviser to the community through “CardBhai.Com”, I have seen lots of cases of disputed transactions where the Banks harass the consumer even though the onus actually lies on the bank to prove about any disputed transactions.

I’d like to bring to your notice

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How to Create & Use HDFC NetSafe Virtual Credit Card for Online Transactions?

Due to increasing fraud in stealing Credit Card numbers from Online Merchant websites, 3 years ago RBI made it mandatory to have a Second Password Authentication – MasterCard SecureCode / Verified by Visa. This brought down the fraud to a great extent. But loophole remains, if your card details is stolen from some e-retailer where you have transacted, it could be easily used on websites outside India bypassing the MasterCard SecureCode /Verified by Visa. To avoid such problems, you now have Virtual Credit Cards.

HDFC Bank introduced the internationally available best practice – Virtual Credit Card under the brand name HDFC NetSafe Credit Card. What is a Virtual Credit Card ? It is a Credit Card you create using your existing credit card account online and use the newly generated card to make a transaction over the Internet and soon after the card is

Read moreHow to Create & Use HDFC NetSafe Virtual Credit Card for Online Transactions?