COMPARATIVE STUDY: BFSI
Banks’ Credit Cards
C for convenience and C for charges
Credit cards have become a part and parcel of banking credit and come to stay within the financial system of India. From buying things on credit to getting them on instalments or making online transactions, or simply paying for your impulse buy, cards are handy, convenient and even empowering. It's not for nothing that credit cards have come to be seen as ‘affording clean credit at a price'. In the report that follows, we revisit some good old tips on being credit cardsmart and alongside compare eight leading banks' credit cards on service charge parameters, which have a direct bearing on their market share and popularity.
– Subas Tiwari & Gopal Ravi Kumar
The main features of a credit card can be summarised as follows: • It is an alternative to cash. • Credit limit is fixed but is enhanced depending on card usage. It aids payment in domestic currency of all servicerelated bills. • There is record keeping of all transactions. • Regular charges are involved. • • There is a grace period or free period (free credit). • There is service fee on cash withdrawals. • Additional charges are levied for delay in payment. The following is a checklist of factors to look at when you choose a credit card: • Annual percentage rate (APR). This is the cost of borrowing on the card, if you don’t pay the whole balance off each month