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| Credit card payment declines 11% during April-July |
| Press Trust of India / Mumbai Sep 10, 2009, 20:13 IST |
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The payments made through credit cards declined by over 11 per cent in the first four months of the current fiscal compared to the same period in 2008-09.
During the April-July period, the payments made through credit card stood at Rs 19,569 crore, against Rs 22,031 crore in the first four months of the last fiscal, according to the RBI September bulletin.
In April this year, Rs 4,932 crore payments were made through credit card that declined to Rs 4,815 crore in May. In June, Rs 4,863 crore credit cards payment were made, while the figure stood at Rs 4,957 crore in July.
According to analysts, the decline in payment is may be due to the adverse impact of financial meltdown on India. Besides, retail consumers have become cautious in taking credit to make their payments.
However, some banks have reduced credit limits given in cards and this might have also hampered the business.
"The decline in credit card payments indicates that people might be averse to taking credit. However, reduction in credit limit by banks may be another reason," said an economist with a leading bank requesting anonymity.
On the other hand, the payments made through debit cards have increased by more than 40 per cent during the first four months of the current fiscal compared to the same period last year.
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