Financial cards witnessed a robust growth in India in 2002-03. The number of cards in circulation increased by almost 50 per cent. The growth in transaction value, at 95 per cent, was even more spectacular. These results are attributable to the thriving economy which led to a large increase in disposable income for mid- and high-level income groups in urban and metropolitan areas. Consumers were not only more open to the possibility of owning a financial card, but were also more than willing to use their cards to settle dues. The status symbol aspect of owning and using cards, too, played its part in bringing about such robust growth over the space of a single year. Debit cards, in particular, proved immensely popular. The number and transaction volumes of all types of financial cards grew substantially between 2002 and 2003. But it was debit cards that played the pivotal role. Consumers preferred debit cards because they were wary of winding up spending more than they could afford. Another contributing factor was the quiet but aggressive promotion campaign launched by key `producers' in this sector. The growth of credit cards in number and transaction volumes in India was low compared to other countries in the Asia-Pacific region. But there is definitely room for further growth. Debit cards, too, have yet to realize their full potential. Among the factors that limited growth was the comparatively slow rate of growth of ATMs in India. This is not the way most Indians perceive this issue, but cross-country statistics very definitely bear out the position as stated in the Executive Summary of a $1400-report on `Financial Cards in India'. It is, however, expected that this constraint to further growth will ease up in the near future as the advent of ever-new technologies drives down the costs of opening and operating terminals. In the meantime, the trend in India has been to greatly enhance the networking of ATMs. Cards issued by one bank, are increasingly accepted by ATMs owned and operated by other banks, on the payment of a small fee. This, incidentally, is true of debit cards as well; not only of credit cards. A large number of cardholders, however, remain unaware of this development. Debit cards issued by, say, HSBC, can be used at all `Visa electron' enabled ATMs, including those belonging to Citibank and HDFC bank. HSBC debit card drawals on HDFC Bank terminals cost only Rs 55. If, on the other hand, you merely wish to check the balance in your account, you can do so for a mere Rs 15. Credit cards are often used for `big ticket' spending in India, like dining at 5 star hotels, and purchasing (often reimbursable) air tickets. Industry sources believe that in future credit cards are also likely to be used in a big way for the payment of school fees, and hospitalization expenses. Projections for the 2003-2008 period, the number of financial cards in circulation will register a compounded annual growth rate of nearly 51 per cent. These estimate, however, seems conservative, representing as it does only a 2 per cent increase over the growth between 2002 and 2003. Debit cards are expected to continue to spearhead the growth of financial cards in terms of the number of cards. Though, for a variety of reasons, this may not be the case in terms of transaction volumes.
[...] Plastic money is here, there & everywhere: The age of plastic money seems to be here to stay. ‘Share of Wallet' study among cardholders across the six cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad reveals that card usage is highest for dining and shopping, while it is also popular for travel-related expenses such as air tickets, hotels and car rentals. The result of the Indian survey is in line with the other markets in the Asia Pacific region that were surveyed. [...]
[...] Finely I can say that plastic money has an importance in present scenario and most of the people want to keep money in plastic form. **BIBLIOGRAPHY** Websites : Google. com Indiainfoline.com Timesofmoney.com Creditreporting.com Magazines: Business world India Today ANNEXURE: QUESTIOIORE FORMAT Market Survey to study consumer behavior For credit cards DISS/CC: Q.1) Do you use a credit card Yes [ ] No[ ] If Yes go to Q.2 If No go to Q.5 Q.2) Name of the bank/banks whose credit card you are using : Q.3) You have been using credit card since : a year [ ] b years [ ] c years [ ] d. [...]
[...] Smart card industry: changing a way of life By Mehmood-ul-Hassan Khan Combining credit cards, debit cards, smart cards, microchip gadgets and computers are rapidly pushing paper money out and replacing the same with plastic money. Now, wallets and handbags are carrying plastic cards for no matter what the need in terms of cash and finances. As governments throughout the world build techno-fortresses, computer chip-driven bits of plastic flap as wonder cards driving the next sunrise industry. Smart cards usually have multi-purpose lives from being national ID cards to tools for buying bus tickets or paying petrol pump bills. [...]
[...] The sector of plastic money has been an upward trend in India. There are various players in India which have given boost to there sector namely, Standard Chartered, State Bank o India, Bank of Baroda, Citi bank, ICICI Bank, HSBC etc. The different facilities offered by different issuers have lured the consumers. Today with increase in competition issuer is becoming more and more liberal in order to tap more and more customers. However an attempt to increase business by means of being liberal has proved to be un- lucrative as it has given rise to mounting of bad debts to the issuer. [...]
[...] A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations accept VISA cards. Affinity Cards - A card offered by two organizations, one a lending institution, the other a non-financial group. Schools, non-profit groups, pro wrestlers, popular singers and airlines are among those featured on affinity cards. [...]
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