Credit Card New Changes 5

In this new Era of Digital money people are fond of there usage too if we talk about there buying interest of something they are not waste time of things too much they just go for it buy and spent money by using credit cards.  There has been a significant decline in the number of credit cards in the July-September quarter of FY 2023. The Reserve Bank of India (RBI) has made it mandatory in the norms that any credit card that has been inactive for more than a year should be closed. Since then, the credit cards of many big banks have decreased rapidly. The number of credit cards declined by 25.5 lakh to 7.77 crore in the second quarter of the current financial year.

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Credit card demand increase aggressively so this industry was issuing an average of 15 lakh credit cards in a month. Because banks were aggressively moving into the unsecured loan business after the covid pandemic. In April this year, the Reserve Bank had given guidelines for issuance of credit and debit cards, stating that if the credit card is not in use for more than a year, then the cardholder should be informed. If there is no response from the cardholder within 30 days, the card may be closed by the card issuing bank which will be subject to payment of all dues of the cardholder. In addition, the card closure information will be updated to the credit information company within 30 days.

if we talk about positions or ranking then Axis Bank is at the second place, with the number of cards falling by 11 lakh during this period. Due to this, the total number of credit cards of the bank has come down to 88.2 lakh, from about 100 lakh in July. On the other hand, ICICI Bank has reduced 4,09,147 cards during this period. In the month of September alone, ICICI Bank’s net 6,20,000 cards have decreased. Among other major merchants, Canara Bank’s cards declined by 3,54,413 cards in Q2 while Yes Bank and Standard Chartered cards declined by 40,567 and 1,04,432.

But in market still there are some players who doing well if we talk about SBI card, the situation was different for SBI Card, which has made gains during the quarter. In the second quarter, the number of SBI cards has increased by 2,93,368. RBI’s norms had limited impact on SBI, as its cards attract 95 per cent charges. The management said that all the guidelines issued by the regulator are progressive and will enhance the credit card culture. Similarly, Kotak Mahindra Bank has increased by 2,47,813 cards, while IDFC First Bank, IndusInd Bank and RBL Bank have increased by 1,61,443 cards, 1,08,334 cards and 92,000 cards respectively during this period.

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Once upon a time HDFC was leading in the Credit card industry by providing Pre Approved card to his customers with a very good limits. and there was a situation too where RBI take action on issuing new credit card for HDFC customers. now HDFC Bank had a market share of 22.34 per cent, followed by SBI Card at 18.18 per cent, ICICI Card at 17.18 per cent, and Axis Bank at 12.3 per cent at the end of Q1 FY23. On the other hand, HDFC Bank’s market share has declined by 21.01 per cent and has fallen 133 basis points since the first quarter. On the other hand, SBI Card’s market share has increased by 19.08 percent, which is 90 bps more. ICICI Bank’s market share declined marginally, while Axis Bank’s market share declined by 95 bps.