Credit card transactions spike in January

Transactions worth Rs. 6,934.65 crore were carried out in India through credit card in January, 2011, growth of 27.82 % from that in the same period last year.
Credit card transactions during January, 2010 were at Rs. 5,425.51 crore, according to the RBI data.
The number of credit cards in circulation have, however, declined by over 10 % to 1.81 crore as on January 31, 2011, from 2.02 crore in the same period last year.
During the April-January period of the fiscal, the total transactions carried out via credit cards increased 21.78 % to Rs. 62,335.44 crore as against Rs. 51,188.94 crore in the April-January period of 2010-11.
Meanwhile, debit card transactions in January were up by 49.04 % to Rs. 3,712.67 crore, as against Rs. 2,491 crore in the corresponding month last year.
There were 21.82 crore debit cards in use in the country as on January 31, 2011, up over 25 % over the figure of 17.41 crore in the year-ago period.
In April-January period, the total transactions carried out by debit cards jumped by 47.06 %, to Rs. 32,029.24 crore, from Rs. 21,779.83 crore in the first 10 months of the last fiscal.

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.

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

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