Key Points
MUMBAI: Credit card transactions surged 30% year-on-year in January despite regulatory restrictions on some business payments through this mode as reward points offered by banks were lucrative, as were the repayment terms, said experts...
Reserve Bank of India (RBI) data showed that credit card transactions increased to Rs 1.7 lakh crore in January from Rs 1.3 lakh crore a year ago..
Significantly, card spends as well as transactions increased despite the RBI prescribing higher risk weights on unsecured loans, including credit card outstanding...
On November 16, 2023, the RBI increased the risk weights on unsecured consumer credit exposures of banks and non-banking financial companies (NBFCs), including credit card receivables, as well as bank lending to NBFCs other than housing finance companies...
We feel that this is mostly for low ticket personal loans mostly and other unsecured business loans and less on credit cards, said Federal Banks Chitrabhanu..
