When was credit card introduced in india

This will enable them to transact seamlessly with input dealers as also enable them to have the sales proceeds credited to their accounts when they sell their output at mandies, procurement centers, etc. The following delivery channels shall be put in place to start with so that the Kisan Credit Card is used by the farmers to effectively transact their operations in their KCC account. However, the banks can also offer this on other fully encrypted modes application based or SMS based to make use of the recent relaxation on transaction limits.

Banks can also offer unencrypted mobile banking subject to RBI regulations on transaction limits. Such solutions also need to be enabled on IVR in local language to ensure transparency and security. Such mobile based payment systems should be encouraged by all the banks by creating awareness and by doing proper customer education.

With the existing infrastructure available with banks, all KCC holders should be provided with any one or a combination of the following types of cards :.

Farmers with a landholding of more than 1 hectare and up to 2 hectares Small Farmers. Note : To obtain an aligned printout please download the Best viewed in x resolution in IE 5 and above. Year Month All Months January Feburary March April May June July August September October November December. Illustration I 5. Other features Uniformity to be adopted in respect of following: Withdrawal through BCs using smart cards.

PoS machine through input dealers 4. Aadhaar enabled Cards. What we are seeing today is, in my opinion, broadly a work of these two companies that have facilitated merchants to now accept payments not just from the same city or state or country but also internationally!

Fun Fact: Diners Card was the first company to introduce cards in India. This was initiated by Mr. Kali Mody in In the s, people who lived or traveled to foreign countries were the only ones who opted for the Diners Card offerings in India. The adoption towards credit cards was so slow that it took 15 years to reach 8, Diners Card registered users in India. The Central Bank of India launched the first bank credit card in , which was followed by Andhra Bank in the same year — both were of the Visa brand.

MasterCard was introduced to Indian consumers by Vijaya Bank in The key differentiator then was that Vijaya Bank allowed customers to withdraw cash from their branches. The eligibility of getting a credit card was entirely based upon the income of the consumers. Between to , a lot of PSU banks started issuing credit cards to their customers. At the same time, ATMs also started increasing in India.

Seeing this as an opportunity, Indian banks started issuing debit cards to their customers, providing the convenience to withdraw money from their account whenever they wanted to from an ATM machine. The credit card industry started gaining popularity due to wider acceptability at shops and better product offerings in a competitive landscape.

These days, banks offer bundled insurance benefits, zero liability in terms of frauds, reward point systems, etc as well. By the late s, a significant number of consumers in the Indian market were aware of credit card and debit card products. The next big thing to start in India was online payments — only limited by internet penetration and card availability. Post the launch of players like IRCTC , MakeMyTrip , and Flipkart people started availing online services not just via internet banking services of their bank account but also cards.

Banks can do so with the approval of their Boards. Banks desirous of setting up separate subsidiaries for undertaking credit card business would, however, require prior approval of the Reserve Bank.

The Fair Practices Code should incorporate the various guidelines on the subject issued by RBI from time to time, as well as the relevant Guidelines contained in this Master Circular.

Banks may ensure that the relevant nomination details are recorded by the Insurance Company. Banks may also consider issuing a letter to the credit card holder indicating the details regarding the name, address and telephone number of the Insurance Company which will handle the claims relating to the insurance cover. NBFCs, which desire to enter into a co-branding arrangement for issue of credit cards with banks, may be guided by the instructions contained in circular No.

Similarly while issuing corporate credit cards, the responsibilities and liabilities of the corporate and its employees may be clearly specified. Banks should also prescribe a ceiling rate of interest, including processing and other charges, in respect of credit cards. For this purpose, the banks should publicise through their website and other means, the interest rates charged to various categories of customers.

Card issuers should ensure that there is no delay in dispatching bills and the customer has sufficient number of days at least one fortnight for making payment before the interest starts getting charged. Card issuers should quote Annualized Percentage Rates APR on card products separately for retail purchase and for cash advance, if different. The method of calculation of APR should be given with a couple of examples for better comprehension.

The APR charged and the annual fee should be shown with equal prominence. The late payment charges, including the method of calculation of such charges and the number of days, should be prominently indicated. The manner in which the outstanding unpaid amount will be included for calculation of interest should also be specifically shown with prominence in all monthly statements.

Even where the minimum amount indicated to keep the card valid has been paid, it should be indicated in bold letters that the interest will be charged on the amount due after the due date of payment. These aspects may be shown in the Welcome Kit in addition to being shown in the monthly statement.

Banks are advised to follow uniform method of determining over-due status for credit card accounts while reporting to credit information companies and for the purpose of levying penal charges viz. However, this would not be applicable to charges like service taxes, etc. The terms and conditions for payment of credit card dues, including the minimum payment due, should be stipulated so as to ensure that there is no negative amortization.

Changes in charges other than interest may be made only with prospective effect giving notice of at least one month. If a credit card holder desires to surrender his credit card on account of any change in credit card charges to his disadvantage, he may be permitted to do so without the bank levying any extra charge for such closure. Any request for closure of a credit card has to be honoured immediately by the credit card issuer, subject to full settlement of dues by the cardholder.

There should be transparency without any hidden charges in issuing credit cards free of charge during the first year. In case, an unsolicited card is issued and activated without the written consent of the recipient and the latter is billed for the same, the card issuing bank shall not only reverse the charges forthwith, but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed. In other words, the written consent of the applicant would be required before issuing a credit card.

The application form for credit card must explicitly provide for consent the same. The information being sought from customers should not be of such nature as will violate the provisions of the laws relating to secrecy in the transactions. The procedure should also cover the notice period for such reporting as also the period within which such report will be withdrawn in the event the customer settles his dues after having been reported as defaulter.

In all cases, a well laid down procedure should be transparently followed.