Slowdown impacts credit card business, payments decline 12 pc

Credit card payments declined by 12 per cent in the first half of the current fiscal, reflecting the impact of slowdown on the plastic card business in the country. During April-September period this year, payments made through credit card stood at Rs 29,330 crore against Rs 33,470 crore in the first six months of the last fiscal, the Reserve Bank's bulletin said.
In September, credit card payment slipped to Rs 4,902 crore compared to Rs 5,635 crore during the corresponding month last year.
According to analysts, the decline in payment may be due to adverse impact of financial meltdown on India and people might be averse to taking credit.
However, another major reason could be the reduction in credit limits given in cards by some banks.
"Payments made through credit card are down because the maximum amount limit given by banks could have been reduced," an economist with a leading bank said while requesting anonymity.
On the other hand, payments made through debit cards rose 38 per cent to Rs 11,780 crore in the first six months of this fiscal compared to Rs 8,531 crore during the corresponding period a year ago.
In September, payment made through debit cards rose to Rs 1,868 crore from Rs 1,513 crore during the same month last year.
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