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CREDIT CARD
MANAGE YOUR CREDIT CARD
ISSUE OF AMEX AND DINER'S CARDS BARRED IN INDIA
ISSUE OF AMEX AND DINER CARDS RESTRICTED IN INDIA :
Dated 24.04.2021 : Indian regulator Reserve Bank of India ( RBI ) has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021 . Hence no new cards can be issued by both of them in India .
The restriction is imposed as the two companies are not complying with RBI rules , which mandates all data on the cards issued in India are to be stored in India only .
For RBI Press release dated 23.04.2021 , CLICK HERE
Dated 24.04.2021 : Indian regulator Reserve Bank of India ( RBI ) has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021 . Hence no new cards can be issued by both of them in India .
The restriction is imposed as the two companies are not complying with RBI rules , which mandates all data on the cards issued in India are to be stored in India only .
For RBI Press release dated 23.04.2021 , CLICK HERE
YOUR CARDS WILL COME WITH NEW FEATURES FROM TODAY
Updated on 01.10.2020 : In view of Covid-19 situation in the country , RBI had given time up to 30.09.2020 to implement the scheme . Don't be surprised if your cards have been disabled for on-line payments or international spends . From today onward , your credit cards would have been disabled for functions like international payments , contactless transactions , international payments etc in view of RBI Guidelines .
Out of the various functions available on your card , you can decide now which ones you want to use and swithch off others . Further now onward , you can fix the limit within the overall limit of the card and change the limits yourself and enable / disable any type of transaction on the website of credit card issuers . Login to your credit card issuers website and change the various limits for cash withdrawals , daily spends , on-line payments etc and also enable / disable various types of payments for cash , international payments , web payments and cash payments .
Further if you want to safeguard your cards from unauthorised usage , you may disable functions you may not use immediately for example international payment . At the time of necessity , you can re-activate the card for the particular function .
PS : Some banks like State Bnak of India have already implemented the feature , while some banks are yet to alter their softwares for the purpose .
Dated 16.03.2020 : Reserve Bank of India ( RBI ) had asked , on 15.01.2020 , all banks and card issuers to provide the following facilities in the new cards both debit and credit to be issued from today onward :
1. Customers should be able set transaction limits (within the overall card limit, if any, set by the issuer) which include
to switch on / off and set / modify transaction limits for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc.
2. The facility will be available on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR) . Banks should make the facility available at all branches / offices .
3. Banks will send alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
Further card issuers were asked to disable all the cards issued by them which are never used for on-line transactions by March 16,2020 . However the facility to use the cards in ATMs and Point of Sales ( POS ) Devices will continue . The card issuers were also asked to review all other existing cards issued and decide whether to continue the facilities in the cards based on risk perception .
As per RBI instruction the new cards ( Fresh / RRe-issue ) will come only with only ATM transactions and
POS transactions enabled . However the customers can enable on-line transactions if they desire .
Hence you may have to enable on-line transactions and set usage limits for on-line and ATM transactions both for domestic and international spends for the new cards and renewed cards issued from today onward . Already some of the card issuers are giving such facilities on selected cards .
For RBI Notification , CLICK HERE
PAY CREDIT CARD DUES ON TIME OR ELSE ?
Dated 03.04.2020 : Reserve Bank of India has permitted all commercial banks to grant a moratorium of three months on payment of all installments falling due between March 1, 2020 and May 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. But as per RBI instruction , Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.
The moratorium applies to credit card dues also and hence your credit card companies are approaching you offering the moratorium as prescribed by RBI . But before availing any such facility and defer your payments , ponder over the following points :
1. Interest rates on Credit cards are very high and interest is not waived on your dues . Hence interest that accrues on credit card dues will also be high . Hence you may ultimately pay much more than your current dues .
2. You may be waived of penalty and penal charges of interest but your regular interest payment itself will be high .
3. Your credit score will not be affected or delayed payment will not be considered as default .
In overall the amount you pay later than due date will be higher than the actual dues and it may be substantially higher if you avail any further concession of deferred payment . Hence if your financial position permits , it is prudent to pay off the dues within due date . Or else you will be ending paying interest at credit card rates and bankers will have last laugh .
Availing of moratorium on credit cards should be resorted as a last resort if no other financial source is available
Dated 03.04.2020 : Reserve Bank of India has permitted all commercial banks to grant a moratorium of three months on payment of all installments falling due between March 1, 2020 and May 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. But as per RBI instruction , Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.
The moratorium applies to credit card dues also and hence your credit card companies are approaching you offering the moratorium as prescribed by RBI . But before availing any such facility and defer your payments , ponder over the following points :
1. Interest rates on Credit cards are very high and interest is not waived on your dues . Hence interest that accrues on credit card dues will also be high . Hence you may ultimately pay much more than your current dues .
2. You may be waived of penalty and penal charges of interest but your regular interest payment itself will be high .
3. Your credit score will not be affected or delayed payment will not be considered as default .
In overall the amount you pay later than due date will be higher than the actual dues and it may be substantially higher if you avail any further concession of deferred payment . Hence if your financial position permits , it is prudent to pay off the dues within due date . Or else you will be ending paying interest at credit card rates and bankers will have last laugh .
Availing of moratorium on credit cards should be resorted as a last resort if no other financial source is available
TAX ON CREDIT CARDS ON IMPLEMENTATION OF GST :
Dated 04.07.2017 : Service tax on financial services , which included Banking / credit cards / insurance / mutual funds etc and was charged at 15 % has been now replaced by GST at 18 % . But there is fake news being circulated in social media like Facebook , Whatapp that a customer has to pay tax twice if pays his bills through credit cards . As per the fake news , GST has to be paid twice once on the utility bills like electricity , telephone mobile etc and second time on credit card payment . The news is not correct as GST will be collected only on service charges levied by banks like annual fee , cash withdrawal charges in ATMs , late payment charges etc and not on the bill payment . Hence there is no question of paying GST on paying your bills through credit cards . GST , like earlier service tax will be levied on the amount of service charges levied by the bank and not on the transaction value . If you conduct your banking transactions within the limit allowed by the banks , banks may not levy service charges and there will be no GST payment on it .
Normally banks levy service charges on transactions like Money Transfer , Cheque Book issue , Atm cash withdrawal , annual fee on debit / credit cards , late payment charges , penal charges etc . The list is illustrative . One has to pay GST of 18 % on the service charges levied . Suppose if you draw cash from ATM using credit card , say Rs 5,000 and if bank charges Rs 300 as cash withdrawal charges , you have to pay GST of Rs 54 only at 18 % on Rs 300 only and not on Rs 5000 cash withdrawn . Similarly if you pay mobile bill through credit card and if you settle credit card bill within due date for payment of credit card , there will be no charges levied by bank and hence no GST .
Hence credit card customers can continue to make payments on their utility bills through credit cards without worrying about GST . However note to pay the credit card bill before last date as late payments attract various charges like penalty , interest etc . Such charges may be heavy and avoid them .
Dated 04.07.2017 : Service tax on financial services , which included Banking / credit cards / insurance / mutual funds etc and was charged at 15 % has been now replaced by GST at 18 % . But there is fake news being circulated in social media like Facebook , Whatapp that a customer has to pay tax twice if pays his bills through credit cards . As per the fake news , GST has to be paid twice once on the utility bills like electricity , telephone mobile etc and second time on credit card payment . The news is not correct as GST will be collected only on service charges levied by banks like annual fee , cash withdrawal charges in ATMs , late payment charges etc and not on the bill payment . Hence there is no question of paying GST on paying your bills through credit cards . GST , like earlier service tax will be levied on the amount of service charges levied by the bank and not on the transaction value . If you conduct your banking transactions within the limit allowed by the banks , banks may not levy service charges and there will be no GST payment on it .
Normally banks levy service charges on transactions like Money Transfer , Cheque Book issue , Atm cash withdrawal , annual fee on debit / credit cards , late payment charges , penal charges etc . The list is illustrative . One has to pay GST of 18 % on the service charges levied . Suppose if you draw cash from ATM using credit card , say Rs 5,000 and if bank charges Rs 300 as cash withdrawal charges , you have to pay GST of Rs 54 only at 18 % on Rs 300 only and not on Rs 5000 cash withdrawn . Similarly if you pay mobile bill through credit card and if you settle credit card bill within due date for payment of credit card , there will be no charges levied by bank and hence no GST .
Hence credit card customers can continue to make payments on their utility bills through credit cards without worrying about GST . However note to pay the credit card bill before last date as late payments attract various charges like penalty , interest etc . Such charges may be heavy and avoid them .
Credit Card basics - How to select one that's right for you?
1. Think
for what purpose you are going to use the card.
whether you intend to pay in full before due date what are the charges issuer are going to charge what will be the interest rate in case of delay what rewards you are going to get on usage. 2. Go to websites of leading issuers and compare various cards available. 3. If you intend pay in full , take card with least charges. Cards are available with no joining fee and no annual fee. 4. If you intend partial payment , take one with least interest . Our advice is to make full payment of cards before due date. Interests are very high on cards (view video below). 5. Depending up on your spending expectation like travel , shopping etc , chose specialized cards for the purpose . you will have more reward points on such usage. |
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SOME LEADING ISSUERS OF CREDIT CARDS IN INDIA
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You can directly go to their links below and see what they offer
ICICI BANK LTD STATE BANK OF INDIA CITI BANK HDFC BANK LTD STANDARD CHARTERED BANK HSBC BANK LTD Most of the Nationalized banks , for example Indian Overseas Bank , also issue credit cards. If you have account with them, you can directly approach them. Even many Indian Pvt sector Bank issue credit cards . You can use your existing relationship with the bank for obtaining credit card TYPES OF CREDIT CARDS |
 Cake for the Future
Plan your Expenses Plan Credit Card use Tweak your Bank Account and Earn Extra Income Click Below to Read HAVE CAKE AND EAT IT |
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RUPAY CARD
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By NET WORK :
VISA : Visa Network is most popular among all networks which connect Credit card Issuers , Merchants accepting the cards and holders of cards . Partner banks issue VISA branded credit cards which signifies that network partners of Visa accept the cards . Visa do not issue credit cards directly and they connect and facilitate payment process .
MASTERCARD : Its operations are similar to Visa and they also do not issue credit cards directly .
AMERICAN EXPRESS : American express maintains network as well as issues credit cards directly .
RUPAY : Only Indian Payment Network operated by NCPI
VISA : Visa Network is most popular among all networks which connect Credit card Issuers , Merchants accepting the cards and holders of cards . Partner banks issue VISA branded credit cards which signifies that network partners of Visa accept the cards . Visa do not issue credit cards directly and they connect and facilitate payment process .
MASTERCARD : Its operations are similar to Visa and they also do not issue credit cards directly .
AMERICAN EXPRESS : American express maintains network as well as issues credit cards directly .
RUPAY : Only Indian Payment Network operated by NCPI
Safety Tips for Usage of Cards 1. Sign the signature panel on the back of your card as soon as you get .
2. Never keep your PIN code in the same place as your card. 3. Keep your account number private. 4. Make sure your devices and networks are secure. 5. Shop online only on trusted web sites. 6. Keep your passwords a secret. 7. Have a tab on your account . Check often. 8. The most important tip - USE YOUR CARD JUDICIOUSLY Use your card for what you need to buy . Never buy just because your card has a spending limit. To understand how to manage your credit card bills efficiently, check out the video below 'Credit Card Debt Explained With a Glass of Water'. |
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Credit Card Fraud
Although there is no way to foolproof a credit card fraud, there are ways to reduce chances or reduce the damage it can do to you.
Some tips -
1. Keep tabs on your account . Check often.
2. Store the phone number of your credit card companies in your mobile for stolen credit card reporting. Call them immediately once you find out your card is stolen to cancel your card, and dispute any transactions you have not made.
Videos below offer helpful advice on these matters.
Some tips -
1. Keep tabs on your account . Check often.
2. Store the phone number of your credit card companies in your mobile for stolen credit card reporting. Call them immediately once you find out your card is stolen to cancel your card, and dispute any transactions you have not made.
Videos below offer helpful advice on these matters.
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