SBI Cards to launch Rs25,000 limit credit cards for lower strata of the society
To tap opportunities out of limit cash supply, SBI cards will soon launch a credit card with a cap of RS25,000 For Those Who belongs to the Lowest category of India, who have capacity to pay but don't have cards. A top company official said.
“For the lower strata of society who do not have credit worthiness to get card, what we understand today is that each bank account has some money. So, we can give them secured card, even if they don’t have any credit history. So, card with a limit of Rs25,000 against the security of bank deposit can be given to anyone,” SBI Cards & Payment Services (SBI Cards) chief executive Vijay Jasuja told PTI in an interview.
The problem is not that these people don’t have money to spend, but they don’t have cards to use, Jasuja said, adding SBI Cards will offer them secured cards in about two-three months. After government’s decision to ban old banknotes of Rs500 and Rs1,000, SBI Cards has been witnessing a surge in card usage and expects to add 20-25% more customers.
“Since this move (demonetisation), there is surge in the usage of cards both in terms of number of transactions and volume. Our plan was to grow by 9,00,000 to 1,00,000 cards in one year but with this change, it will be extra by at least 20-25% new set of customers,” he said.
He also said that the company has simplified card acquisition process and is planning to reduce the income cut-off criteria for giving credit cards to potential customers. Jasuja said that even Jan Dhan account holders can be potential customers. SBI Cards is also in the process of speeding up customer acquisition process by reducing the delivery period so that more and more people are added to the network.