American Express Profit Rises 71%

American Express Co.'s third-quarter profits soared 71% as customers increased their spending by 14%, and receding losses from souring card loans allowed the company to squirrel away less for a rainy day.

AMEX’s results offer an insight into the rising optimism of its borrowers—mostly well-heeled consumers and companies—as the economy stabilize despite stubbornly high unemployment. The company's performance also cements the turnaround in the credit-card industry.

Like many banks that reported earnings recently, American Express is benefiting from fewer losses on bad loans, but struggling with weak demand for new loans that would lift revenue.

Lending volumes "remain below prerecessionary levels as card members continued to manage their finances carefully and pay down outstanding debt," Kenneth I. Chenault, AMEX’s chief executive, said in a statement.

AmEx shares, which were up 54 cents, or 1.4%, to $40.27 in trading on the New York Stock Exchange, fell 0.9% to $39.90 in after-hours trading.

American Express issues charge cards, which must be paid off each month, as well as credit cards that allow customers to carry a balance. Unlike most other card companies, which either lend or process the transactions, AmEx does both. Therefore, a big chunk of its revenue comes from fees it charges banks and merchants, such as grocery stores or gasoline stations, to process card payments.

AmEx reported third quarter net income of $1.09 billion, or 90 cents a share, up from $640 million, or 53 cents a share, a year earlier. Analysts polled by Thomson Reuters forecast earnings of 86 cents on $6.8 billion in revenue.

The company's U.S. card business reported net income of $595 million in the third quarter, up from $158 million a year earlier.

Lower delinquencies, a gauge of future losses, allowed New York-based AmEx to squirrel away $373 million for potential losses, down 68% from last year's third quarter. American Express reduced its reserve for losses by $959 million in the latest quarter, boosting income. For the time being, lower card balances will likely be offset by reduced loan-loss reserves.

For the quarter ended Sep. 30, the company wrote off 5.2% of its U.S. card loans, down from 6.2% in the second quarter and 8.9% in last year's third quarter. Meanwhile, 2.5% of the company's U.S. cardholders were a month behind on their payments, an improvement from 2.7% as of Jun. 30 and 4.1% a year ago.

During the recession, consumer spending slowed, eating into AmEx's transaction fees. The more cardholders charge on their AmEx plastic, the more the company earns by way of fees.

AmEx's revenue rose 17% to $7 billion, aided by the implementation of a new accounting rule requiring companies to bring their off-the-books securitized loans on to their balance sheets in fiscal 2010, and higher cardholder spending. This was offset by lower U.S. card balances, which fell 7% from a year ago to $49.1 billion.

SBI up lending rate by 10 bps to 7.6%

State Bank of India (SBI) increased base rate or the minimum lending rate for the new borrower by 10 basis points to 7.6 %, a move that would make all kinds of advances, including corporate loans, costlier.
The bank has revised the base rate below which bank cannot offer loans, upwards by 10 basis points from 7.5 % to 7.6 %, effective from October 21, 2010, SBI informed the Bombay Stock Exchange.
This is the first review of the base rate since it was introduced in July this year. As per the RBI guideline, banks have to review their base rate every quarter.
With the increase in base rate, all kinds of loans excluding housing and auto loans would be dearer by at least 10 basis points (0.1 %).
Currently, SBI is offering teaser home and car loan till December and rates would be as announced earlier.
The revision in base rate follows the RBI's move to raise short-term lending (repo) and borrowing (reverse repo) rates in its September monetary review.
In order to bring in more transparency, the base rate was introduced as replacement for the Benchmark Prime Lending Rate (BPLR) from July 1 this year.
SBI has also raised BPLR for the existing customers by 25 basis points to 12.5 % from earlier 12.25 %. The new rate would be effective from tomorrow.
Earlier this month, SBI hiked fixed deposit rates by up to 75 basis points. The bank raised deposit rates from 25-75 basis points (0.25-0.75 %) across various maturities.
For 91-180 days term deposits, SBI provides 5.5 % interest, up 75 basis points from the existing rate.
A fixed deposit with maturity period between 1 year and 554 days was raised by 25 basis points to 7 %, while deposits for 555 days would attract 7.5 %.
The interest rate on term deposits of between 556 days and 1,000 days under different slabs, has been increased by 50 basis points, to 7.75 %.

Credit Card which satisfy your all requires

A credit card helps the user to purchase the goods and services without the risk of carry the money with them. When the purchase is made, the Credit card holder gives the card to the seller. The seller swipes the card and feeds the secret PIN number as told by the card holder. After the end of each month the card holder is provided with a statement sent from the Authority providing the details of the transactions made by the user during the month. It also provides the information about the exact date of payment of the dues. The company usually provides the customer a grace period of 20 to 40 days depending upon the amount of credit card issued by the organization. There are various type of organization that provide the credit cards like SBI, ICICI,  HDFC, ABN-AMRO etc. The company that issues the card usually charges a certain amount of interest on the amount of total purchase made by the user.
The Credit card provides various kind of benefit to the user. It allows the user to get the short term loans within a small period of time depending on the fact that the total charges are not higher than the maximum credit limit of the card. Moreover it reduces the risk of carrying the liquid cash in order to purchase the goods.
HDFC Credit cards also provide several kinds of benefits to the users. In order to satisfy the different needs of the different customer they have designed their credit cards into various categories. They have cards like Classic Cards, Special benefit Cards, Premium Cards and Commercial Cards. In the head of Classic Cards there are different cards like Silver Credit, Value Plus, Gold Credit Card, Titanium, Women Gold, Platinum Plus, Visa Signature, and World Master Credit Card. The Commercial Cards are also subdivided into several parts like Corporate Credit Cards, Corporate Platinum Credit Card, and Business Credit Card etc.
Like other credit cards ABN-AMRO credit cards provide the user the power to manage the all the finances of them. The ABN-AMRO Freedom credit cards provide different kinds of benefits like it reduces the prices of petrol at the time of making the payment. Through the use of this card the user can earn bonus points. As per the rules the customer earns one bonus points for making a purchase of more than Rs.100. This bonus points can be exchanged later on with an exciting gift hamper. It has also got different variety of cards to satisfy the demand of the different strata of the customer. The different cards are Platinum Card, Make My Trip Card,Smart Gold Card etc.
So the Credit cards provide different benefits to the different people and in this busy life every body should have the access of the cards in order to make their life more speedy.
Also Apply SBI Credit cards Online

Credit card companies offers good plans in festive season

What most spenders like about the festive season is the huge discounts, attractive schemes and offers most consumers durable companies come out on their products and services. With the economy picking up and the credit card usage increasing once again, card issuing companies too have tied up with various brands to offer tempting discounts, cash back offers, finance schemes.
And these offers are not just applicable on credit cards alone but are extended to some debit cards as well. “Apart from offering bonus points over and above the regular reward points earned on spending on the ICICI Bank credit cards and debit cards this season, we have come out with exclusive discounts on lifestyle and electronics too, “ says an ICICI spokesperson.
During the coming week, when you go shopping make sure you corner those extra savings and rewards that your credit card can offer you.
Apparel: You can avail discounts of up to 10% if you swipe your HSBC credit cards and Axis bank to purchase clothes. HSBC, for instance, has come out with festive scheme — Happy Swipes, where its credit and debit cardholders are eligible for cash back of 5% on making any purchase from Fabindia and Jashn stores on a minimum transaction of Rs 2,500 and Rs 5,000, respectively.
In case you wish to pick something from Star Bazaar this season, you can avail 5% cash back on a minimum spend of Rs 1,500. Under the cash back offer, the money gets credited to your account after the purchase has taken place. Similarly, by making a minimum purchase of Rs 3,000 on your Axis bank credit or debit card, you can avail additional 10% discount on purchase of any apparel at Central and Pantaloon outlets.
Dining: There is something for your palate too. As an American Express cardholder, if you book a flight to Hong Kong through Cathay Pacific Airline this month, and can participate in the “Hong Kong Wine and Dine Festival”, which is being organised from October 28 to October 31, you would get a free wine pass. However, if you travel first or business class (card), you would receive 5 wine tokens in addition to it.
Travel: If you are in a holiday mood this season, make sure you book tickets online. Several credit card issuers like HSBC and SBI have tied up with online travel portals like makemytrip.com, ezeego1.com for cash back offers of up to 30% on booking through them.
Under IRCTC and SBI card tie-up, you are eligible for refund up to 17% on all hotel and railway bookings, if the transaction is worth Rs 7,500 and above. Also, you can earn discounted tickets this season by using your card. Under the ‘Bonus Pe Flying Bonus’ offer by SBI cards, you can earn one discounted Kingfisher airline ticket if you swipe your card for purchase worth between Rs 60,000-one lakh.
Any purchase above Rs 1 lakh can get you two such tickets. “These offers are for both new as well as existing cardholders, provided the new cardholders have enrolled within the offer period,” says Abhay Kumar Singh, CEO, SBI Card. Similarly, you can save up to 10% on the base fare of your GoAir ticket by using your HSBC credit or debit card.
For your city travel you can make use of your Indian Oil Citibank credit card wherein you will get free fuel worth Rs 300 (maximum Rs 600) on every spend of Rs 30,000 on the card. The free fuel would be credited as Turbo Points to your card and will reflect in your credit card statement. The scheme, which has been running under its special offer is valid till the end of November.

LIC HFL Financial and United India Insurance ties-up

United India Insurance Company Ltd and LIC HFL Financial Services Ltd, a fully owned company of LIC Housing Finance Ltd, on Monday announced a strategic tie-up to distribute non-life insurance products at an event in Mumbai on Monday.
As per the terms of agreement, LIC HFL Financial Services will undertake non fund-based activities like marketing of housing loans, insurance products, credit cards, mutual funds and other third-party products. The company has established marketing units at 33 different centres across the country.
RR Nair, director and chief executive officer (CEO) of LIC Housing Finance, said, “Our main focus is on retail and we aim to provide innovative products at economic prices.”
Shobana Murli, CEO of LIC HFL, announced their stated goal was to reach 20,000 homes this financial year.
The government-owned United India is one of the fastest growing non-life insurance majors in the country, second in terms of business net worth (which is currently pegged over Rs 4,000 crore) and solvency margins (3.41 per cent). The company posted a net profit of Rs 707.79 crore in 2009-10.
As per the current norms of the insurance regulator, a company is permitted only two tie-ups – one with a general product firm and another with a life insurance company.
LIC HFL Financial Services can already boast of being the frontrunner in terms of disbursements and sanctions for home loans for 2009-10. Currently, the firm receives 10-12 per cent of its business through corporate agents. A LICHFL Financial Services official said that the company expects to achieve business worth Rs 1,000 crore within a year of its launch.
”For the financial year 2009-2010, the firm saw a net worth of Rs 3,000 crore, with a target to touch Rs 6,000 crore by FY 2010-2011. Of this, Rs 1,000 crore would be attributed to new business generated by this association.” said Nair. “The non-life insurance market is growing in tandem with the economy. Great growth prospects are also seen in the retail segment,” he added.

Credit cards make life easier, do understand the fine print

It is not rare to see credit cards, which are seen as tools of convenience, turning into weapons of financial destruction for card holders, often due to lack of knowledge about their correct usage. Despite being constantly reminded about this, many fail to keep themselves abreast of the charges and other terms and conditions pertaining to a credit card. The realisation usually sets in only when their monthly credit card statement arrives at their doorsteps, showing an amount in excess of their estimation.
The first step to avoid mistakes other card users generally make is to take a close look at the Most Important Terms and Conditions (MITC) list, which is put up on the card issuers’ website. In addition to finance charges (interest charged on overdue amount payable to the company) and late payment fees, which are commonly known, it contains the details of charges payable by the user on other counts.
For instance, it may be tempting to use your credit card to withdraw cash, if your bank balance is inadequate. However, you need to remember that cash withdrawal at ATMs using a credit card attracts an upfront charge of nearly 2.5% of the amount. What’s more, in case of such transactions, the payment becomes due from the date of withdrawal and not after the expiry of the grace period, which is the case with transactions where the cards are swiped at Point of Sale (POS) terminals. The rate of interest could range from 39-45% per annum.
Besides, if you do not monitor your card usage, there is a chance that you could exceed your credit limit, attracting an overdrawing charge of around 2.5%, or `500, whichever is higher. Also, depending on the bank’s cheque collection policy, you may have to shell out charges for making credit card bill payment through an outstation cheque. This could be around 1% of the cheque value, or `50, for every instrument.
Finally, another term that you need to be aware of relates to non-payment of dues. If you maintain another account with the bank which has issued the credit card to you and have not been paying the card bill as per schedule, the bank has the right to use the money lying in your account to clear your credit card outstanding, without seeking your consent.

Govt plans low rates home loans for paramilitary personnel

In an attempt to make home ownership easier for paramilitary personnel, the Central government is planning to launch a scheme under which home loans are made available to them at concessional rates. “The scheme will allow a soldier from a paramilitary force to avail cheaper home loans at least two years prior to his retirement,” a senior home ministry officer told Hindustan Times.
The official added that the government is formulating the exact modalities of this scheme, such as loans rates and tenures and has initiated talks with several banks for its implementation.
“The State Bank of India has in-principle agreed to be part of this scheme,” the official said.
In fact, SBI has already been closely associated with the armed forces. The bank had recently launched Defence Salary Package (DSP) for the Indian Army whereby it aims to open close to 12 lakh accounts of Army personnel under the scheme.
The DSP offers free drafts, cheque books, fund transfers and ATM cards to the soldiers of Indian Army to any of SBI Group’s over 15,000 branches.
The scheme also offers home, auto and personal loans to Army personnel at 25 basis points lower than the floor rate.

Indian Travel Website say Special Offer for HDFC Bank Credit Card Customers

Indian travel website in association with HDFC bank brings a special offer for travelers in India. The website have offered up to 10% discount on all travel booking including the discount coupons / promo code which are valid for Domestic & International Air Tickets and Domestic Hotel / holiday bookings.
According to the website, the promotion will last till 31st Dec, 2010. The discount may be extended for satisfaction of the customers holding HDFC Credit card. Customers have to submit the discount coupon / promo code “Code” followed by 6 digit of the Credit Card for eg. "Code123456". Discount will not be valid on cancelled tickets/bookings or for charge back transactions. The discount will not be valid if any one of the air ticket is canceled.
Now travelers can enjoy Domestic Holidays with in India with the extension discount of 20% on Holiday booking. The discount will not be valid if a Hotel is booked on Discount offer. At the same time, the promotion code can not be exchanged.
The website is planning to display more offers during festival season for the comfort of travelers. Travel websites are expecting new seasonal offers from banks so as to attract customers to their website. Even though the vacation season has ended most of the travel websites generates good sales due to various events which are to be held at India. So enjoy a good trip with the offers provided by online travel agents.

Citibank launches credit card for normal flyers

Citibank launched a new credit card that will give frequent flyers the chance to earn mileage points when they fly on more than 50 domestic and international airlines.
Till now, air travellers could only accumulate mileage points by flying on a single airline.
"The Citibank PremierMiles Credit Card differentiates itself by offering frequent flyers a 'universal' mileage platform that enables them the unique freedom and flexibility to earn miles on their travel on over 50 domestic and international airlines," Citibank said in a statement.
The key benefit of the Citibank credit card is that it frees customers from having to choose one airline loyalty programme over another. "The feature-rich card offers a superior earn rate of 10 PremierMiles per Rs 100 on all airline spends and a preferential interest rate," it added.
With an annual fee of Rs 5,000, card members will receive a first-year activation bonus of 5,000 PremierMiles.
"An annual spending of Rs 4 lakh in a year earns cardholders a bonus 2,500 PremierMiles. All non-airline purchases on the card earn customers 2.5 PremierMiles for every Rs 100 spent," Citi said.
Announcing the launch, N Rajashekaran, Citi India Country Business Manager, Global Consumer Group, said, "Citibank PremierMiles is a powerful addition to our bouquet of cards and will build on the success and popularity of this platform across multiple markets in Asia."

Towards an extra green revolution

Almost immediately, the National Food Security Act will become law. The ruling United Progressive Alliance flagship social security programme of providing every Below the Poverty Line (BPL) family with 25 kg of rice or wheat at Rs 3 per kg per month is a welcome step to alleviate some of the human trauma that haunts the poor in our country. The government also hopes that the Act will secure freedom from hunger for 40 per cent of the population. But a successful implementation of the Act requires a boost in food production. Can it be done today?
It has happened once before in our country. India's food output, which was 72.3 million tonnes in 1966, rose to 108.4 million tonnes by 1971. It was made possible by two men with distinct rural backgrounds Prime Minister Lal Bahadur Shastri and food and agriculture minister C Subramaniam. Subramaniam, brought in by Shastri to tackle the looming food crisis, was the architect of reforms in the agriculture sector. He shook up the bureaucracy, introduced yield increasing technologies, created producer price incentives and established new institutions like the Agriculture Price Commission and Food Corporation of India during this period. This transformed India from a food-deficit to food-surplus nation in a short span of five years in what is now popularly known as the 'era of the Green Revolution'.
Today, agriculture is 18 per cent of the gross domestic product and the country is in the midst of transitioning into a market economy. To repeat the success of the 'Green Revolution', the agriculture sector too needs to be subjected to market forces. But many of the public institutions functioning in a market economy that can be expected to bring about major policy changes lack board representation for the agriculture sector. This has proved to be a hindrance to sustainable agriculture and improving food production. Important public institutions like the RBI and nationalised banks, the country's premier stock exchanges BSE and NSE and associations like the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) should be mandated to fulfil their obligations to the agriculture sector.
Lack of representation on the boards of the RBI and nationalised banks has denied the farming community the necessary financial instruments required for farming to be profitable. Many of the credit schemes like Kisan Credit Card, investment schemes like Rural Infrastructure Development Fund and insurance schemes like crop insurance throughout the production process have failed because of a lack of initiative from nationalised banks. While micro-payment systems and mobile banking are flourishing in Africa, the RBI has continued to shun technology options to reach rural customers. When it is time to appoint the next RBI governor, the government must give serious consideration to an eminent agro-economist heading the central bank. As a shareholder in nationalised banks, the government must nominate representatives from the agriculture sector to the boards of these banks. This could send the right message to the farming community and to the country at large that the government is serious about tackling agriculture sector finance problems.
When it comes to the Bombay and national stock exchanges, everyone recognises the need for private investment in the agriculture sector. But the sector is unrepresented in these freest of the free market institutions. Therefore, it comes as no surprise that the exchange authorities have neither introduced an agro-index nor do agro-companies find representation in the Sensex or Nifty. Despite the listing of multibillion- dollar agro companies like Jain Irrigation, Tata Tea and United Phosphorus, authorities at the stock exchanges do not see merit in representing 18 per cent of the economy in the indices that are supposed to be barometers of the entire Indian economy. Introducing an agro-index along with agro-companies finding representation in Sensex and Nifty will go a long way in bringing much-needed private investment to the agriculture sector.
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The stated mission of FICCI and the CII is to work closely with the government on policy issues, competitiveness and expanding business opportunities for industry. But rarely do these industry associations advocate agriculture reforms and their silence was palpable during the BT-technology debate. Indian agriculture suffers from a distorted market, laws that stifle private investment, controlled prices and poor infrastructure that requires policy changes from the central government. Land consolidation and marketing reforms are needed at the state level. FICCI and CII can be ardent advocates for policy changes at the Centre while their state chapters can do the same with local governments. To proactively recommend policy changes, due representation should be given to the agriculture sector on the boards of these two industry associations.
Effective implementation of the Food Security Act along with India's desire to achieve double digit economic growth and keep food prices in check will require food output to be doubled in the next decade. In order to boost agriculture output, major policy changes are required at every level of government. Agriculture needs board representation proportionate to its strength in the economy in important public institutions to triumph the multidimensional problems afflicting the sector.

International credit card fraudsters under arrest in Ahmedabad

Timely thinking on the part of a mall manager helped crime branch sleuths nab a duo with fake international credit cards on Sunday. Further, it saved at least nine NRIs from being duped by a gang reportedly operating a fake international credit card racket in London, and apparently in various other countries as well.
Crime branch officials caught 28-year old Kinjal Joshi, a resident of Prerna Viraj Tower-II in Satellite, and his friend Jay Joshi (29), a resident of Shastrinagar in Naranpura. The two had been shopping at the city's Central Mall with a forged credit card. Later, the police allegedly discovered eight more fake credit cards from the two.
As per the chronology of the incident, the two accused made some purchases from the mall on Saturday afternoon. They produced a credit card for the payment. However, while one of them signed on the printout of the bill, the accountant noticed that the signature was not tallying.
"Staff members at the counter sensed that something was wrong with the card. They immediately informed their manager. They then informed an Axis Bank official, as it is an Axis Bank
swapping machine that is being used in the mall," said a crime branch official.
The mall's manager Ashish Gargi reportedly informed the police after verifying that the card was forged. When the police arrived, they are said to have discovered eight other such cards from the two.
According to the police, Kinjal and Jay used to live in London in a rented apartment, four years back. They were students, pursuing an MBA programme. Later, Jay returned to Ahmedabad, and is said to be presently unemployed. Kinjal, on his part, works as a deputy manager in a casino in London. He is reported to have arrived in the city a couple of days back, to meet his family.

No SMS services to banks customers for transactions

Bank customers and equity trading account holders have stopped getting transaction alerts on their mobiles as the government has put a ban on bulk SMS service in wake of the pending judgement in the Ayodhya title suit.
In view of the Government of India directive to mobile operators, all bulk SMS messages have been banned in all service areas till further notice. The customers will not receive SMS alerts or messages during this period, ICICI Bank informed its customer through its website.
Usually, a bank customer of gets SMS alert for their transaction done through any mean either through ATM or internet.
At the same time, credit card transaction is reported to the individual customers within few minutes after the payment is made.
As a result of this, customers may not get information of fraudulent transaction taking place during the intervening period as the ban has been extended till September 30.
"We would advise you to exercise additional caution in your banking and credit card transactions," HDFC Bank informed its customers.
GSM lobby group COAI, today said it has requested the Telecom Department to relax the ban for certain essential services for the benefit of the subscribers.
"We have already written to DoT to relax the ban for essential services. We are yet to hear from them," said COAI Director General Rajan Mattews.
According to a senior official of Air2web, a mobile messaging service provider, alerts generated by bank is not being sent to customers as it is being treated as under bulk SMS category by mobile operators.
The alerts generated by bank is routed to mobile operators through middleware firm like Air2web which has about 35 banks as customers including State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda, IDBI Bank and UCO Bank.
The ban has been imposed to prevent any rumour being spread to fan communal disturbance in the wake of verdict on the Ayodhya title suit scheduled on September 30.
"The Ministry of Communications and Information Technology has today issued orders in consultation with the Ministry of Home Affairs to all Mobile Telecom Service Providers in the country that all bulk SMS and all bulk MMS messages shall remain banned in all service areas till September 30," the Ministry of Communications and Information Technology said in a statement today.
The order was issued to all mobile telecom service providers in the country for "banning all bulk SMSes and MMSes in all service areas with immediate effect till September 30".

Usage of debit cards ups as compared to credit cards

Indians are using more of debit cards than credit cards for their banking transactions, says the Reserve Bank of India (RBI) data for the year ended 2009-10. While the transactions through debit cards jumped by 42 per cent at Rs 26,418 Cr in the last fiscal from Rs 18,547 Cr in 2008-09, it slipped by 4 per cent for credit cards to Rs 62,852 Cr from Rs 65,356 Cr.
In the same period, the number of debit cards in circulation has also increased by 33 per cent as compared to a fall in credit card circulation by 10 per cent over the previous year.
The total number of debit cards increased to 17 Cr in 2009-10 from 12.8 Cr in 2008-09. On the contrary, the total number of credit cards went down to 23.4 Cr in 2009-10 from 25.9 Cr in 2008-09.
“Shopping through debit card has become more convenient now due to rise in point of sale terminals in various shopping centres,” says Subrat Pani, business head- cards, Kotak Mahindra Bank. "Volume of transaction has increased due to easy availability of debit cards, which are given with every newly opened bank account."
Industry experts also attribute the popularity of debit card to the cautious attitude of Indian consumers as a result of the recent economic downturn.
“While debit card can enable the consumer to track their spending better, it is also a great payment tool for those who are credit averse or are not credit worthy,” says a senior official at VISA, who did not wish to be named.
Downturn in the economy was the major reason for negative trend in credit cards. “During the slowdown, banks became cautious in issuing new credit cards to check defaults. Also, last year many lost their jobs which led to the decline in spending through credit cards,” said Pani.

SBI the most trusted credit card brand

SBI Card has been voted as the most trusted brand in the credit card category in Reader’s Digest Asia Trusted Brands Survey, for the third year in a row.
Accepting the award, Abhay Kumar Singh, CEO, SBI Cards & Payment Services Pvt. Ltd, said, “We have consistently invested in new technologies and introduced new service offerings to make life simple for our customers. We are delighted that our customers have voted us as the most trusted credit card brand for the third year in a row.”
SBI Card has focused on customers-centric initiatives and offerings over the past decade. The recently concluded 250 service camps were one such initiative that helped SBI Card proactively reach out to 2,10,000 customers in 31 cities in India. SBI Credit Card is the only credit card company in India that offers customers the ease of 13 different modes of payment. Last year, SBI Card won several Indian and Asian awards including the most trusted brand in credit card category in the Reader’s Digest Asia Trusted
Brands 2009 Survey, a consumer choice award from CNBC Awaaz and ‘Asia’s Best Mature Captive Services Delivery’ award from the Shared Services Outsourcing Network (SSON).

Credit cards hit retail loan business

In the dispensation of retail loans, banks increasingly find their hands tied by the credit card history of applicants. The repayment history of all credit card holders is recorded by Credit Information Bureau (India) Ltd (Cibil) and disseminated among banks.
Both public and private banks told Financial Chronicle that taking decisions on retail loan applications was becoming problematic as credit card defaults had increased and loan applicants’ record showed up on their computers. But the disputed accounts were not mentioned in the history.
Bankers said there had been many cases where the ‘defaulters’ might not have been at fault, as credit cards were thrust on them, and charges piled on them even while their cases were under dispute. Routinely dubbing them ‘defaulters’, card-issuing banks promptly sent adverse reports against them to Cibil.
Cibil, the credit information company formed in 2004, hosts the credit record of borrowers of virtually the entire lending spectrum of the country -- banks, non-banking financial companies (NBFCs) and financial institutions. The credit history of a loan applicant is made available to lenders to minimise fraud and check potential defaults.
Expressing concern at the trend, an official of the retail lending division of Punjab National Bank said loans were often refused, and applicants asked to sort out the matter with the card issuer or approach Cibil.
“We are witnessing a high incidence of adverse reports. It is an issue of concern for us and the industry in general,” he said.
G S Rekhi, chief general manager of credit at Punjab and Sind Bank, has had a similar experience. “We are facing a serious problem due to instances of credit card defaults reported by Cibil. An increasing number of our loan requests are getting blocked due to the adverse credit card history of applicants,” Rekhi said.
Arun Thukral, Cibil managing director, admitted most of the problems were on the credit card front. “We are working to improve the reporting system where disputed accounts will be brought to the notice of lenders,” he said. Thukral did not want to put a number to the cases of what he called “credit card challenges”.
Lending institutions said they did not keep a statistical record of loan denials. However, an extent of the malaise can be gauged from the report of the banking ombudsman, whose office deals with complaints of bank customers. The report for 2008-09, which was released by the Reserve Bank of India in February, points out that credit card-related complaints accounted for 26 per cent of all complaints which numbered 75,000 during the year.
The number of credit-card complaints itself increased by over 74 per cent during the year, showing an uptrend. “The types of complaints continue to be those related to issuance of unsolicited credit cards, unsolicited insurance policies, recovery of premium charges, charging of annual fee despite the cards being offered free, issuance of loans over the phone, disputes over wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, abusive calls and excessive charges,” the report says.
The report may not give the full picture, as many customers do not approach the ombudsman, choosing instead to try and settle with their banks.
C S Jain, head of personal banking at IDBI Bank, said that often the problem was due to outdated records with Cibil. “The pace of updation of Cibil records appears slow. We have come across cases where the Cibil report points to a default but the individual concerned has a letter showing a settlement having been reached with his bank months earlier,” Jain said.
Cibil’s Thukral denied delays, saying his organisation constantly updated its database. “We have upgraded our system over a period of time. Today, it takes barely three or four days to upload data we receive. The data must be fresh and we have to depend on what lending institutions provide. Earlier, data were provided to us on a quarterly basis but now it is done every month. The task is enormous. We host borrower data from over 200 lending institutions,” he said.
IDBI Bank’s Jain said his bank had instructed its staff that adverse credit report showing defaults of up to Rs 5,000 should be ignored where prima facie it appeared that the borrower was not at fault. “If defaults are bigger, then we certainly take cognisance of the Cibil report. Wilful default is a clear indication of how a borrower will behave subsequently,” he said.
The Punjab National Bank official spoke of instances when they ignored the Cibil report “if we feel that these are cases of forcibly sending cards and compounding of charges. Otherwise, we ask the borrower to approach Cibil with the facts and get the data rectified,” the official said.
A State Bank of India official dealing with retail loans, however, said Cibil’s report was useful to the system. “It is a question of being able to correctly interpret the report. Banks have to learn how to assess the payment ability and likelihood of default based on the report. The entire credit information system functions on the basis that it lets the rest of the system know about what’s going on elsewhere. We are still in a nascent stage,” he said.

Private cabs to accept cards payments soon

You need not bother about carrying cash the next time you take a private cab in the city. Around 3,000 cabs will offer payment by credit card by June-end.
With Easy Cabs and City Cool Cabs having started the credit card facility recently, other operators like Meru, Mega Cabs and Gold Cabs plan to offer this payment option to passengers soon. While Meru is in the process of importing hightech swiping machines from Italy, Gold Cabs will offer card payment facility from next week onwards. Mega Cabs will launch the service from June 10.
Meru CEO Rajesh Puri said, “Mumbai is a commercial hub and there is a daily influx of business travellers from across the world. It becomes difficult for passengers to pay in Indian currency. Also, the card payment option would be easier, convenient and faster.” Meru already offers the card payment option in Delhi, Hyderabad and Bangalore.
Mega Cabs vice-president Vinod Mishra confirmed that there was a huge demand from passengers for the credit card payment facility. “ While giving us feedback, passengers who hire vehicles for official purposes request for the credit card payment option. We have decided to introduce the facility in all our vehicles ,” he said.
Gold Cabs CEO Arun Sabnis said that installing a card swiping machine was an expensive affair. “But due to public demand, we will instal swiping machines in each vehicle,’’ he said.
Easy Cabs officials claim they are the pioneers in introducing the credit card system in Mumbai cabs.
Vijay Agunde, proprietor of City Cool Cabs, said he offers credit card facility only on request, installing the machine on a temporary basis. “The machine costs Rs 25,000 and there is a possibility of drivers misplacing it. I cannot take this risk,” he stated. Star Taxis also plans to introduce the facility in near future.
“Every private taxi operator will have to switch to card payment soon. These days, you will find a passenger carrying not one but at least three to four credit cards in his/her wallet,’’ Sabnis added.

HDFC Bank off commercial migration of EMV credit card

HDFC Bank has begun to supply credit card compliant with the global EMV standard to its premium-segment customers nationwide. The 500,000 smart cards for the commercial launch phase that will run until March 2011 are being supplied by the Indian subsidiary of security technology specialists Giesecke & Devrient. This initiative will increase the Indian subcontinent's migration to EMV, from standard magnetic stripe formats to chip-based smart cards. These cards will provide a higher standard of security.
HDFC has started its migration to the EMV standard with credit and forex prepaid smart-card products on the Visa platform. HDFC Bank also plans to issue EMV smart debit cards in the near future. These smart cards will also serve as a multi-application platform. Applications being considered include a customer loyalty program and an electronic purse.
Announcing this migration plan, A. Rajan, group head of operations, HDFC Bank said: "We want to offer our customers the benefit of modern, secure EMV cards and safeguard them from fraudulent skimming and misuse of HDFC credit cards."

Number of credit card holders slips to 18.3 mn in March: Fewer swipes

The number of credit cards in circulation fell below the 20-million mark in March, as issuers continued to cull inactive and defaulting accounts and focus instead on increasing spends.
The country’s credit card population fell to 18.3 million as of end-March from a peak base of 28.3 million in April 2008, according to data released by the Reserve Bank of India. In the last financial year, 6.04 million cards were put out of circulation. This is in addition to nearly 3.61 million credit cards being cancelled in 2008-09. So, over two years, nearly 10 million cards have gone out of circulation.
This is the first time since August 2006 that the credit card population has declined below 20 million.
As the economy slid into a downturn, unsecured portfolios of banks such as credit cards and personal loans were severely affected. As part of a firefighting exercise, banks began to cancel inactive cards and close accounts they feared would default. The country’s largest private sector lender, ICICI Bank, cut its base from a peak of more than eight million to about five million at present. Late entrants into the credit card space such as Barclays Bank and Axis Bank were also affected.
However, issuers have since become optimistic and have resumed new card issues from the second half of 2009, while simultaneously culling inactive and defaulting accounts. Some like HDFC Bank remained bullish and continue to issue 70-80,000 cards every month. HDFC credit cards has the second largest card network in the country, with 4.3 million cards as of March 31.
Rather than increase the numbers of cards, issuers are trying to increase the spending on each. Standard Chartered Bank has seen its monthly credit card spending increase from Rs 250 crore last year to Rs 400 crore. “We are aiming for a target of Rs 500 crore per month soon. Ours is a highly rewards-driven programme, concentrating on what works with customers,” said Shyamal Saxena, general manager of retail banking at StanChart.
The focus on getting fewer customers to spend more is reflected in the numbers. According to RBI data, customers spent an average of Rs 2,685.97 per transaction in 2009-10, up from Rs 2,518.4 in 2008-09. In 2007-08, customers spent an average of Rs 2,540.9 per swipe.
Bankers say the market has also shifted towards the high-end, less susceptible to delinquencies. “The focus for the last three years has been the premium segment and losses from this segment are significantly less than from other segments,” said a senior executive of a large foreign bank.
While the pool of premium customers is much smaller than the mass segment, high-end customers make up by spending more. “I would prefer to have 5,000 high-end customers rather than 20,000 premium segment customers,” the executive added.

Jet Airways associates with SBI Credit Cards to offer simple payment option

Jet Airways, India’s premier international airline, today announced a tie-up with SBI Card the joint offering from State Bank of India and GE Capital, to offer its guests a unique travel option.
This arrangement is aimed at making air travel more affordable for guests across India. Jet Airways’ guests can now opt to convert their air tickets purchased on www.jetairways.com, using an SBI Credit Card into a zero % equated monthly installment (EMI).
Under this offer, SBI Credit Cardholders would be able to choose an option to convert their ticket purchases on jetairways.com into a zero percent EMI with tenure of 6 months.
Mr. Sudheer Raghavan, Chief Commercial Officer of Jet Airways, said “Jet Airways is committed to significantly enhance the travel options available for all its guests, with an eye on convenience. The tie up with the SBI Card is another unique travel option aimed at making air travel more economical and cost-effective for family travel. This new scheme bears testimony to our customer-centric approach wherein Jet Airways’ has time and again created products catering to the specific travel needs of our guests.”
This scheme will help a family to undertake visits to tourist spots and encourage domestic tourism, he further added.
“We are delighted to partner with Jet Airways and offer SBI Card holders an affordable travel option. This offering is in line with our focus on the travel segment as it enables air travelers a unique opportunity to fly now and pay later without any additional costs.,” said Mr. Abhay Kumar Singh, CEO, SBI Cards & Payment Services Pvt. Ltd.

Visa International:Huge growth in plastic money transactions

Visa International said that it expects an enormous growth in plastic money transactions in India in the next five-years.
"The usage of plastic money now is just 2.5 % of the USD-700 billion consumers are spending in India annually," Visa International Country Head, Uttam Nayak, told PTI today, after the company was selected by State Bank of India (SBI) as a joint venture partner for the merchant acquiring business.
The international average (of plastic money usage) is 9 %.
"Within the next five-years, we see a huge potential in this field. More people are converting to plastic money," he said.
It is Visa's first such kind of joint venture here and it expects that the tremendous success it gained in Brazil can be repeated in India, he said.
Visa entered Brazil through such a joint venture and within 12-years the number of terminals rose to 1.2-million from the earlier 50,000, he said.
Earlier today, India's largest lender SBI said it has selected US-based Elavon Incorporation and Visa International as its joint venture partners for the merchant acquiring business.
This is after the bank had floated a Request For Proposal (RFP) for selection of joint venture (JV) partners for merchant acquiring business last year.
Know More And Apply for SBI Card

Credit Cards: Par panel for capping of interest rates

Concerned over the exploitation of credit card holders, a Parliamentary Committee has suggested that RBI should prescribe maximum interest rate that can be charged by banks from customers.
"Maximum interest rates to be charged (by banks from credit card customers) may be specified so as not to allow exploitation of customers by banks," a report of the Standing Committee on Finance, which was tabled in Parliament, recently, said.
The Committee did not agree with the contention of the Finance Ministry that credit card dues are in the nature of non-priority sector personal loans and hence, the banks should be free to decide the interest rates.
Even the RBI's circular casing various aspects relating to credit card operations of banks has not been of much help in addressing the grievances and complaints of general public, the committee noted.
"The effectiveness of such circulars in bringing down the credit card related complaints is doubtful given the past record," the report of the committee said.
The Reserve Bank's circular asks banks to ensure prudence while issuing credit cards, avoid issuing unsolicited cards, third party agents for debt collection should not resort to intimidation or harassment, among others.
"The RBI has advised banks ... to consider issuing cards with photographs of the cardholder/ PIN/ signature laminated cards or any other advanced methods to prevent fraud; it is imperative to see that these are implemented," it added.
As of February, total number of outstanding credit cards in the country is 202 Lac, as per RBI's April bulletin.
The number of credit cards has been declining in the last two years. It was 247 Lac in March 2009 and 275 Lac in March 2008.

Yes bank to launch credit cards

In a step to fuel its ambitions to boost its retail division, Yes Bank has decided to launch its credit cards by the end of the fiscal 2010-11.
The bank will also enter into home and car loan divisions by March 2012, Rana Kapoor, founder, MD and CEO of the bank said.
Presently, the bank has 150 branches throughout 26 states in India. It intends to add another 100 branches this fiscal. Mr. Kapoor said, “We will take our branch count to 250 by end of March 2011″.
The bank has a retail clientele of 2, 10,000 and about 500,000 of corporate clients (as on March 2010.
The bank also intends to foray into lending to small and medium enterprises (SMEs), unsecured lending to small businesses, home loans and car loans to expand its retail business.
Kapoor said “We have enough headroom to rise around Rs 1,500 crore of hybrid capital, which will be raised domestically. In a rising interest rate environment, it is better to raise money”.
The bank has reported a net profit increase of 75percent this year.
The net interest margin of the bank has displayed a small increase to 3.2percent for the 4^th quarter of the fiscal previous year from 3percent in the same period previous year. Kapoor said “We should be able to keep our net interest margins at the three-plus-level in coming year too”.

Credit card records decline by almost 50 lac in a year

Even as the economy is back on track and consumer confidence up, the number of credit cards in the system continues to dip. In the last one year, the total number of credit cards in use has dipped by almost 50 lakh.
According to the latest data released by RBI in its monthly bulletin, the number of credit cards dipped to just about 2 crore as of end February 2010 from around 2.5 crore a year ago. The data also indicates that average monthly card spends both in terms of value as well as volume have still not touched the pre-crisis (prior to Lehman collapse) levels.
Average monthly spend in FY10 has fallen to Rs 5,100 crore against Rs 5,400 crore in FY09. While average monthly volumes in the current year has been just 1.94 crore a month compared with 2.16 crore a month in FY09. Even peak festival spending through cards in the current fiscal is less than the previous year’s levels. ICICI Bank, the largest card issuer had around 8.5 million cards outstanding at its peak, which has now fallen to around 5 million. While for SBI credit card, the number has dipped from 3.5 million to 2.8 million.
The fall in cards is surprising as banks have started disbursing unsecured loans like personal loans, post crisis, in the past few months. Even credit cards outstandings are treated as unsecured lending by banks. Some large credit card issuers like ICICI Bank, SBI Card, Citi and even smaller issuers like ABN Amro and Barclays have either slowed down or cut their outstanding cards. Only few players like HDFC credit Card and Standard Chartered have seen a nominal growth in their numbers.
Pralay Mondal, country head (retail assets & credit cards), HDFC Bank, said: “Lot of attritions are happening in the system as loss ratios had gone up. Banks are not adding as much new customers. As new customer acquisitions are lower than attritions, the overall numbers are falling. Previously, the number of new customers were higher. We are currently doing around 80,000-90,000 new credit cards a month and our losses are much lesser than industry.” Currently, HDFC Bank has close to around 5 million credit card customers while StanChart has around 1.4 million customers.
Adds Shyam Srinivasan, Country Head — Consumer Banking, Standard Chartered Bank: “StanChart has kept its numbers flat for a while now. We have increased our share in the business. Some of them had overdone themselves and now they are letting go of customers. It’s a normal process. As they were hit by high credit losses, they are trying to clean up.”
According to Abizer Diwanji, executive director of Corporate Finance, KPMG India, “Today, nobody is expanding on the card portfolio except in the debit card space. The cost of merchant acquisition is tremendously high. The maintenance of delivery of credit card is high compared to a personal loans. It’s a far more cumbersome job.”
One of the biggest problems facing the industry has been the rise in bad debts in the past few years. However, this seems to have stopped and bankers say there has been a drop in bad debts in the past few months. Sources said the overall credit card losses for the industry have now come down to 15-16% against around 18% earlier. However, even at these rates, most issuers are still making losses.

LIC launches credit card protection service

LIC credit card holders can now report loss any of their cards from anywhere in the world to a 24-hour helpline launched by LIC Cards Services.
"LIC Cards Services Ltd has launched Card Protection Plan for its credit card customers in partnership with CPP Assistance Services... and it safeguards all of the LIC cardholder's payment cards - credit, debit and ATM cards," the company said in a statement.
It said members will also be able to register their non-financial cards such as store cards, loyalty and membership cards.
Besides, customers will be able to retrieve important details on lost/stolen documents like passport, PAN and driving licence.
CPP said, meanwhile, that to avail of the new service, customers would need to purchase a membership plan offered by LIC and register their cards.
It said membership plans have two offerings with annual fee of Rs 995 and Rs 1,295. "The difference between the two is in the Assistance services limits and fraud protection limits provided to the consumer," it added. People can also opt for a joint membership plan.

World Miles credit card launched by Deutsche Bank

Deutsche Bank World Miles Credit Card - Deutsche Bank announced the launch of World Miles Credit Card in India.
The credit card mainly created to cater to regular domestic and international travelers, will automatically enroll customers in a travel-focused loyalty program called 'WorldMiles' enabling them to earn and redeem miles across any airline in the world.
Launched in association with Loyalty Rewardz and Ezeego, the loyalty program 'WorldMiles' is an airline-independent frequent flyer program- the first of its kind in India.
Deutsche Bank World Miles Credit Card has been launched in two variants, viz. World Miles Signature Credit Card and World Miles Platinum Credit Card. World Miles Signature Credit Card offers 3 Spend Miles for every Rs 100 billed, while the World Miles Platinum Credit Card offers 2 Spend Miles for every Rs 100 billed on the card.
This unique program allows customers to earn miles in three forms: Flight miles, Spend Miles, and Partner Miles which accrue in one single account and can be used to redeem free airline tickets across any sector, domestic or international, and on any airline.
Shameek Bhargava, Managing Director, Head of Cards - Asia Pacific, Deutsche Bank said, "At Deutsche Bank we continuously innovate to enhance value for our customers through products which meet their needs, and seek to surpass expectations.
The World Miles card is one such offering which provides customers an opportunity to earn miles independent of any airline and also consolidate the accruals in one single account. The fact that it is airline independent also means that there is higher rate of accumulation which quickly leads to achieving redemption miles and thus, free airline tickets."
The credit cards also offer value additions like country-specific SIM cards for savings in international roaming charges from Matrix cellular Services, Airport lounge access and comprehensive international travel insurance.

Dhanlaxmi Bank credit cards Launched

Thrissur-based Dhanlaxmi Bank entered the retail resources business with the launch of Dhanlaxmi Bank Platinum and Gold Credit cards. The Credit card are targeted at its premium customers.

As well, the bank for the first time in India is introducing a ‘Pay by Transaction’ billing mode for credit cards. Under this, instead of a monthly billing cycle, the interest-free credit period is considered for individual transactions from the day of purchase. A customer thus enjoys a 45-day interest-free credit period on each purchase and does not need to time the purchase based on the billing cycle.

Speaking at the launch, Amitabh Chaturvedi, MD and CEO, said retail asset would be an important element of the overall growth strategy and the bank intended to launch a number of innovative, customer-centric products in the coming financial year.

The bank will also provide several other benefits like 5 per cent cash back on grocery purchases, priority pass - valid for over 500 lounges and a worldwide concierge services for all its credit card customers, the release added.

Credit Card Offers For the Month of March 2010

Click on Link to know more About Credit Card Offers on Other Banks Credit Cards.
Barclays Credit Card Offers
1) Barclays Gold
Dinning Offer :
•           Get 15% discount at Nirulas,(offer applicable for bill exceeding Rs.200 only till 30th April 2010)
•           Enjoy the delicious food with great discounts in your city at various restaurants
•           Delhi
•           Get 15% discount on food & soft beverages at Asia7.(offer valid till 01 June 2010).
•           Get 25% discount on liquor till 10 pm & 15% discount on food till closing at Dawat Khana.(offer valid till 31 May 2010).
•           Get 15% discount on food at Flames.(offer valid till 31 May 2010).
•           Get 33% discount on liquor( 5pm to 10pm) and 15% discount on food till closing at The Mezz(pub)(offer valid till 31 May 2010).
•           Get 15%discount on food and liquor at Clay Oven.(offer valid till 31 May 2010).
•           Get 15% discount on food at Desi Ladks.(offer valid till 31 Mar 2010).
•           Get 15% discount on bill of more than Rs.400 at Yo!China.(offer valid till 31 Mar 2010).
•           Mumbai
•           Get 10% discount on food at Flags.(offer valid till 01 June 2010).
•           Get 10% discount on food & beverages( Monday to Friday) at 5The Restaurant.(offer valid till 31 May 2010).
•           Get 15% discount on food at Bageecha.(offer valid till 31 May 2010).
•           Buy 2Thalis and get third one free at Rajdhani.(offer valid till 30 April 2010 & at Chembur, near TBZ, Mumbai Central Railway Station,MG Road,Mulund West and at Crawford Market ).
•           Hyderabad
•           10% discount on food at Haveli.(offer valid till 31 May 2010)
•           15% discount on food & beverages at Bottle & Chimney(offer valid till 31 May 2010)
•           Buy 2Thalis and get third one free at Rajdhani.(offer valid till 30 April 2010 & at Amerpeet ).
•           Get 15% off on food & 10% off on liquor at Padharo(offer valid till 31 May 2010).
•           Bangalore
•           Get 15% discount on bill of more than Rs.400 at Yo! China.(offer valid till 31 March 2010 and at Outer Ring Road outlet, Koramangala outlet and at Kammanahalli outlet).
Shopping Offers :
•           Get 15% discount from Tantra on purchase of 3 T-shirts.(offer valid till 30th April 2010).
•           Get 10% discount on a minimum purchase of Rs.2500 from Flying Machine.(offer valid till 30th April 2010)
•           Get 10% discount on Durian Furniture.(offer valid till 30th April 2010)
•           Get 20% discount at Cygnus.(offer valid till 30th April 2010).
•           Get 15% discount on Usha Lexus Furniture.(offer valid till 31st October 2010).
Travel Offers :
•           Get 10% discount on holiday packages at Fortune Hotels.(offer valid till 31st March 2010)
Reward Points Offers :
•           Earn 2 reward points on every spends of Rs.100.
SBI Credit Card Offers
1) SBI Platinum Credit Card
Dinning Offer :
•           Get 20% off at Costa Coffee outlets.
Travel Offers :
•           Enjoy a cashback of Rs1,500 on hotel booking & holiday booking through Makemytrip.com, just tell the coupon code ?SBICPSL?.
Petrol Offers :
•           Fuel surcharge wavier on transaction above Rs.500 and up to Rs.4,000.
Reward Points Offers :
•           Get 2% cashback on International spends.
•           Earn 1 power point on every spend of Rs.50.
Other Offers :
•           Get exclusive discount at Fortis network hospital across the country - Till 31st August 2010
•           a) Get up to 50% discount on special health check package.
•           b) 10% discount on preventive health check package, OPD consultations, pathological investigations & radiological diagnostics.
•           c) 10% discount on In-hospital charges like room rent.
•           Use SBI platinum credit card at Apollo Health & Lifestyle Clinics - Offer valid till 31st Aug 2010
•           a) Get 50% discount on special health packages worth Rs.9,000.
•           b) Get 10% discount on Standard Apollo Health Check-ups.
•           c) Get 15% discount on Diagnostics.
2) SBI Gold Credit Card
Dinning Offer :
•           Get 20% off at Costa Coffee outlets.
Shopping Offers :
•           Get 2% cash back at departmental stores and grocery stores.
•           Tanishq offer 6% off on Diamond Jewellery and 15% off on making charges of plain gold jewellery (till 31st May 2010).
Travel Offers :
•           Get fabulous offers at Yatra.com
•           a)20% off on domestic holiday & hotel booking.
•           b)Rs.5000 off on European destinations.
•           c)Rs.2,000 off on all Eastern destination holidays.
•           Rs.200 off on all domestic Airline Tickets.
Petrol Offers :
•           No surcharge on fuel costing Rs.500 to Rs.3000 across all petrol pumps.
Reward Points Offers :
•           Get up to 50% bonus on reward point conversion to JPMiles, in between 01 Jan 2010 to 31 March 2010.
•           a) Get up to 25% bonus on conversion up to 5500 JPMiles.
•           b) Get up to 50% bonus on conversion above 5500 JPMiles.
3) SBI Silver Credit Card
Dinning Offer :
•           Get 20% off at Costa Coffee outlets.
Shopping Offers :
•           Get 2% cashback at departmental stores and grocery stores.
Petrol Offers :
•           No surcharge on fuel costing Rs.500 to Rs.3000 across all petrol pumps.
From: www.deal4loans.com
Disclaimer: The above information is collected from various sources. Deal4loans.com is not responsible for any sudden change in the offers

Debit Card Offers for the Month of March 2010

Click on Link for knowing More about the Debit cards Offers from Various banks Visit: - Debit Cards Offers
AbnAmro Bank Debit Card offers
1) International Debit Card
Reward Points Offers :
•           Earn 2 Royalty points (equal to Re.1) on retail spends of Rs.100.
•           Earn 5 Royalty points (equal to Rs.2.50) on fuel spends of Rs.100.
•           Redeem rewards (minimum 500 points) as cash through a phone call to the bank
2) Air India AbnAmro Debit Cards
Travel Offers :
•           10% discount on all Air India Domestic and International Flights.
•           Discounts extended to 3 companions too.
•           2 Free Upgrade voucher to Business Class.
Reward Points Offers :
•           200 Bonus Royalty points (worth Rs.100).
•           2 royalty points (=Re.1) on every Rs.100 spends on Retail.
•           5 Royalty points (=Rs.2.50) on every Rs.100 spends on Fuel
3) Gold Debit Card
Reward Points Offers :
•           Earn 3 royalty points (=Rs.1.50) on retail spends of Rs.100.
•           Earn 5 Royalty points (equal to Rs.2.50) on fuel spends of Rs.100.
•           Earn bonus Royalty points for using ATMs, Net Banking, Making utility bill payments etc.
•           Redeem rewards (minimum 500 points) as cash through a phone call to the bank.
4) Van Gogh Preferred Banking Gold Card
Travel Offers :
•           10% discount on Duty Free purchases at Flemingo duty free outlets pan India and on board Jet Airways, Air India and Kingfisher Airlines.
Reward Points Offers :
•           Get 3 royalty points (=Rs.1.5) on every Rs.100 spends on Retail.
•           5 Royalty points (=Rs.2.50) on every Rs.100 spends on Fuel.
Other Offers :
•           Discounts and special access to 15 premier Golf Courses.
5) Premium Debit Card
Travel Offers :
•           10% discount on Duty Free purchases at Flemingo duty free outlets pan India and on board Jet Airways, Air India and Kingfisher Airlines.
Reward Points Offers :
•           Earn 2 Royalty points for Retail Spends of Rs. 100(equal to Re. 1)
•           Earn 5 Royalty points for Fuel Spends of Rs. 100 (equal to Rs. 2.50).
Other Offers :
•           Get discounts and special access to 15 premium Golf Courses.
Axis Bank Debit Card Offers
1) Priority Debit Card
Dinning Offer :
•           Get 10% discount on bills above Rs.250 (without tax) at Nirulas(offer valid till 31 Aug 2010)
•           Get flat 15% off on Pizzas & Garlic Breads at Dominos(offer valid till 31 August 2010).
•           Enjoy mouth watering Pizza and Pastas at Pizza Hut and enjoy the meal.
•           1) King Size Meals with Pastas
•           a) Feast for 2-Any 2 Pastas, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.415/0
•           b) Feast for 4-Any 4 Pastas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.799.
•           c) Feast for 6-Any 6 Pastas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1105.
•           2) King Size Meals with Pizzas
•           a) Feast For 2-Any 1 medium pizza, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.395.
•
•           b) Feast For 3- Any 2 medium pizzas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.750.
•           c) Feast For 6-Any 3 medium pizzas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1080.
•           (Offer valid till 30 December 2010).
Shopping Offers :
•           Get 15% discount on total bill at Vimal(offer valid till 31 Aug 2010)
•           In exchange of old Denim Jeans/Jacket (any brand, on any size),buy Levis Strauss worth Rs.2,999 and take Rs.500 off on the total bill and on purchase of Rs.5,999 get Rs.1,200 off on the total bill.(offer valid till 31 Mar 2010).
•           On purchase of above Rs.10,000 from Diti Jewellery get Rs.1000 gift voucher.(offer valid till 31 May 2010)
Entertainment Offers :
•           Get a free ticket for a companion on PVR Cinema tickets booked online on pvrcinemas.com (offer valid till 31 March 2010).
Travel Offers :
•           Get 10% off on hotels and holiday packages booked on TravelGuru (offer valid till 31 March 2010)
Petrol Offers :
•           Zero surcharge on fuel purchase.
Reward Points Offers :
•           Redeem reward points in charity, dinning, electronics, gift voucher, home, kids, lifestyle, magazines and personal.
Other Offers :
•           15% discount on Diagnostic at The Apollo Clinics.(till 31st March 2010).
2) Classic Debit Card
Dinning Offer :
•           Get 15% discount on total bill at Vimal(offer valid till 31 Aug 2010)
•           Get 10% discount on bills above Rs.250 (without tax) at Nirulas(offer valid till 31 Aug 2010)
•           Get flat 15% off on Pizzas & Garlic Breads at Dominos(offer valid till 31 August 2010).
•           Enjoy mouth watering Pizza and Pastas at Pizza Hut and enjoy the meal.
•           1) King Size Meals with Pastas
•           a) Feast for 2-Any 2 Pastas, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.415/0
•           b) Feast for 4-Any 4 Pastas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.799.
•           c) Feast for 6-Any 6 Pastas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1105.
•           2) King Size Meals with Pizzas
•           a) Feast For 2-Any 1 medium pizza, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.395.
•
•           b) Feast For 3- Any 2 medium pizzas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.750.
•           c) Feast For 6-Any 3 medium pizzas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1080.
•           (Offer valid till 30 December 2010).
Shopping Offers :
•           In exchange of old Denim Jeans/Jacket (any brand, on any size),buy Levis Strauss worth Rs.2,999 and take Rs.500 off on the total bill and on purchase of Rs.5,999 get Rs.1,200 off on the total bill.(offer valid till 31 Mar 2010).
•           On purchase of above Rs.10,000 from Diti Jewellery get Rs.1000 gift voucher.(offer valid till 31 May 2010)
Travel Offers :
•           Get 10% off on hotels and holiday packages booked on TravelGuru (offer valid till 31 March 2010)
Other Offers :
•           15% discount on Diagnostic at The Apollo Clinics.(till 31st March 2010).
3) Gold Debit Card
Dinning Offer :
•           Get 10% discount on bills above Rs.250 (without tax) at Nirulas(offer valid till 31 Aug 2010)
•           Get flat 15% off on Pizzas & Garlic Breads at Dominos(offer valid till 31 August 2010).
•           Enjoy mouth watering Pizza and Pastas at Pizza Hut and enjoy the meal.
•           1) King Size Meals with Pastas
•           a) Feast for 2-Any 2 Pastas, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.415/0
•           b) Feast for 4-Any 4 Pastas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.799.
•           c) Feast for 6-Any 6 Pastas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1105.
•           2) King Size Meals with Pizzas
•           a) Feast For 2-Any 1 medium pizza, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.395.
•
•           b) Feast For 3- Any 2 medium pizzas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.750.
•           c) Feast For 6-Any 3 medium pizzas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1080.
•           (Offer valid till 30 December 2010).
Shopping Offers :
•           Get 15% discount on total bill at Vimal(offer valid till 31 Aug 2010)
•           In exchange of old Denim Jeans/Jacket (any brand, on any size),buy Levis Strauss worth Rs.2,999 and take Rs.500 off on the total bill and on purchase of Rs.5,999 get Rs.1,200 off on the total bill.(offer valid till 31 Mar 2010).
•           On purchase of above Rs.10,000 from Diti Jewellery get Rs.1000 gift voucher.(offer valid till 31 May 2010)
•           Tanishq offers 6% off on diamond jewellery and 15% off on making charges of plain gold jewellery.(till 31st May 2010
Travel Offers :
•           Get 10% off on hotels and holiday packages booked on TravelGuru (offer valid till 31 March 2010)
Petrol Offers :
•           Zero surcharge on fuel purchase.
Reward Points Offers :
•           Redeem reward points in charity, dinning, electronics, gift voucher, home, kids, Lifestyle, magazines and personal.
Other Offers :
•           15% discount on Diagnostic at The Apollo Clinics.(till 31st March 2010).
4) Business Gold Debit Card
Dinning Offer :
•           Get 10% discount on bills above Rs.250 (without tax) at Nirulas(offer valid till 31 Aug 2010)
•           Get flat 15% off on Pizzas & Garlic Breads at Dominos(offer valid till 31 August 2010).
•           Enjoy mouth watering Pizza and Pastas at Pizza Hut and enjoy the meal.
•           1) King Size Meals with Pastas
•           a) Feast for 2-Any 2 Pastas, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.415/0
•           b) Feast for 4-Any 4 Pastas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.799.
•           c) Feast for 6-Any 6 Pastas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1105.
•           2) King Size Meals with Pizzas
•           a) Feast For 2-Any 1 medium pizza, 1 portion of Garlic Bread or Tortilla and 2 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.395.
•
•           b) Feast For 3- Any 2 medium pizzas, 2 portions of Garlic bread or Tortilla and 4 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.750.
•           c) Feast For 6-Any 3 medium pizzas, 3 portions of Garlic bread or Tortilla and 6 glasses of Pepsi/ 7 Up/ Mirinda/ Lemonade/ Iced Tea @ Rs.1080.
•           (Offer valid till 30 December 2010).
Shopping Offers :
•           Get 15% discount on total bill at Vimal(offer valid till 31 Aug 2010)
•           In exchange of old Denim Jeans/Jacket (any brand, on any size),buy Levis Strauss worth Rs.2,999 and take Rs.500 off on the total bill and on purchase of Rs.5,999 get Rs.1,200 off on the total bill.(offer valid till 31 Mar 2010).
•           On purchase of above Rs.10,000 from Diti Jewellery get Rs.1000 gift voucher.(offer valid till 31 May 2010)
Travel Offers :
•           Get 10% off on hotels and holiday packages booked on TravelGuru (offer valid till 31 March 2010)
Petrol Offers :
•           Zero surcharge on fuel purchase.
Reward Points Offers :
•           Redeem reward points in charity, dinning, electronics, gift voucher, home, kids, Lifestyle, magazines and personal.
Other Offers :
•           15% discount on Diagnostic at The Apollo Clinics. (till 31st March 2010).
From: www.deal4loans.com
Disclaimer: The above information is collected from various sources. Deal4loans.com is not responsible for any sudden change in the offers

LIC Credit Card is a best deal in Credit Card.

Lic of India the world number 1 insurance company has just come in to credit card business along with its channel partner Corporation Bank. LIC of India has more than 1 million agents and 2048 branches in India to sell its LIC Policy and and other products like LIC credit card etc
LIC Card Services will be selecting the best in business as payment gateway channel partner.
Life Insurance Corporation of India will enter into a joint venture to launch its credit card business. Life Insurance Corporation of India (LIC), LIC Card Services - A credit Card company will be setup in compliance with RBI regulations.
LIC Credit Cards Services
With no credit card services, companies would lose on many domestic as well as international transactions. Many companies who do not accept new age credit card system as a payment method are not considered as techno savvy companies. Lic of India has understood that the time is right to launch a credit card as a payment method for all Lic premium payment so that they can remain undisputed leader in the world of Insurance and Investment throughout India
Why you should Apply for a LIC Credit Card
Reputation and Brand Image
Reputation and Brand Image
Financial Control
Online premium payment
No Illegal Recovery Methods

Dangerous substances can now be conveyed from CRZs

The Supreme Court stated last week that hazardous substances could be conveyed from coastal regulation zones (CRZ) to industrial units, though an amendment to the CRZ rules totally prohibited any such movement. The 1997 amendment to a central government notification of 1991 on carrying hazardous substances from ports to the industrial units was not “happily worded”, the court said. In order to make the rule workable, the court re-interpreted the vague phrases to enable industries to carry imported hazardous substances from ports to their factories.
The court did so while dismissing environmental objections to a Rs 600 crore plant in the appeal case, M. Nizamudeen vs Chemplast Sanmar Ltd. Several public interest petitions were filed by individuals in the Madras high court and the Supreme Court against the chemical plant. The Supreme Court rejected all objections based on the CRZ rules and allowed the plant to continue production. The judgment did not deal with the plea of Chemplast company that the cases were instigated by its rival, Cuddalore Powergen Corporation Limited.
IT liability on royalty paid for software duplication
The Supreme Court has allowed the appeal of the Commissioner of Income Tax in a batch of appeals from Gujarat, raising the question of tax liability in relation to payment of royalty by Indian companies to foreign ones for duplicating software in India and supplying them to the end-users. In one typical case, Mastek Ltd claimed deduction on the royalty payment under Section 37 of the Income Tax Act. It argued that for each copy duplicated and sold to customers in India (including Reliance Industries and Air India), it had paid royalty to the US corporation based on its sale value and, thus, such payment towards royalty formed part of the expenditure incurred by it in making the sales.
The assessing officer did not agree with it and asserted that only one-sixth of the payment was deductible under Section 35A. When the company appealed, the Commissioner (Appeals) and the appellate tribunal accepted the company’s view. The Gujarat high court did not re-examine the issue. The Supreme Court remanded the case to the high court as “we are of the view that an in-depth exercise needs to be carried out to understand the actual process undertaken by the company in the light of the contract/arrangement with the US corporation.”
Credit card holder in the clear
A credit card holder who has not used his card could still move a consumer forum if there is deficiency in service of the bank which issued the card. The West Bengal State Consumer Commission said so last week in the case, Abhijit Sarkar vs SBI Cards and Payments Services (P) Ltd. The credit card holder had not used the card but substantial amounts were debited by State Bank of India from his account due to operations of miscreants.
When he moved the district consumer forum, it dismissed the complaint observing that since he had not used the card, he was not a consumer according to the Consumer Protection Act. It also stated that he had filed a first information report with the police regarding the transactions and therefore he could not move the consumer forum. He appealed to the state commission, which took a view favourable to him on both counts. It stated that filing of an FIR would not debar the person from moving the consumer forum. Moreover, even if he had not used his card, he would still be a consumer in the eye of the law.

Credit crisis or not, card cos to succeed

The first Diners Club credit card was unveiled back in February 1950. The Diners Club card, used mainly for travel and entertainment purposes, became the first credit card for widespread use and eventually changed the way consumers make purchases. Sixty years later, what is the state and the future of the credit card industry?
Despite the ‘credit crisis’ of 2008, not much has been said about credit card companies and their role as capital providers to individuals and households. Banks were the culprits, but also the victims of the largest drop in stock market indices in decades. Yet, the stock price performance of credit card companies which are publicly traded (Amex, Mastercard and Visa) has been impressive.
Since April 2008, with the S&P 500 index losing almost 33% on a cumulative basis, all three companies have out-performed the market.
The market performance of credit card companies is not surprising. While the reduction of interest rates due to the recession has allowed financial institutions to lower their borrowing costs and therefore emerge almost harmless from the crisis, individual consumers and households seem to have not enjoyed such a favourable environment. Indeed, Visa’s net operating income in FY09 was $2 billion, up 13% from the previous year.
A credit card company is only a network of processing services, by which issuers and acquirers transfer payment from the cardholder to the merchant. In the process, merchants pay fees for the payment processing, and cardholders pay interest on their credit card balances. This is a very profitable business model, but it would be a mistake to assume that credit card companies issue credit cards. Nor do they determine the rates they charge to customers, or the fees that merchants pay to acquirers.
Visa, Mastercard and AMEX make money from fees that issuers and acquirers pay. Such a profit generating system translates into an atypical balance sheet structure. Mastercard, for instance, is a $6.4 billion company (at the end of 2008), of which $4.3 billion are cash and other liquid assets, $700 million are intangibles, and $500 million are deferred income taxes. On the liabilities side, the company has virtually no debt, and it is financed mostly by current liabilities, and $2 billion in equity. Visa is even impressive, with $20 billion in intangibles out of a total size of $32 billion, of which $8 billion are liquid assets.
Who wouldn’t want to invest in companies like these? They are swimming in cash, are extremely profitable and can sail through a financial crisis by transferring their interest rate risk to customers, issuers and acquirers. Since its IPO in 2005, the cumulative return on Mastercard stock has been more than 500%, which is equivalent to a 38% annual return.
But, unfortunately if there is something that credit card products do not need, it is investors. They are rich, do not need to finance heavy capital investments. It turns out, however, that Mastercard did go public, as did Visa, in 2008. Their reasons were non-financial. Mastercard had a severe problem of image.
Mastercard solved its problems by going public, earning a great reputation through its after-market performance and by putting most of the money raised in the IPO in a foundation. Visa had to create an escrow account that would cover litigation (some $3 billion) started against the company by Discover and Amex, among others. Their public offerings were among the most successful of the recent years.
What would happen though if, as some commentators say, the next financial crisis is a personal credit crisis? First of all, such a crisis seems now further away than ever. With low-interest rates and social pressure, a household credit crisis would be the last event that any government could now afford.
Additionally, I hope this article clarifies that it would not be the credit card companies that would suffer the most — they are cash shielded, do not get directly impacted by the default of the final customer and are owned by banks, which are by far healthier than two years ago. There is little reason to doubt that the first credit card launched 60 years ago will not continue to thrive and be a part of our every day lives for the decades ahead