Credit Card Settlements a Proxy for Consumer Confidence
By MEHER ONISA : 19-Dec-2016
MUMBAI: Demonetisation has noticed a valley deep dingle in the overall merit utility of the credit card transactions. The dynamic and the demanding December markets are driving through a sluggish and static phase all through the season. Bankers are slightly optimistic about their consumers likely to make credit payments for their holiday destination booking, fuel, food and dining.
SBI Collapses Due to Poor Credits:
The SBI Credit is the second largest credit card issuer in the Indian region. Vijay Jasuja the MD of SBI Credit claims that there has been a cumulative decline in the high-value discretionary spending on jewellery and consumer durables. SBI Credits have reports 30-35% increase in the usage of the credits but only to meet the miscellaneous needs of the households rather than making luxuriant purchases. Card usage was also down on fuel as the old notes were allowed in some parts. The Card will crack on with the fuel purchase but only after the absolute wipe out of the old notes from the market.
Credit Cards, the Big Ticket for EMI Biz Loses its Shine:
The ICICI Bank states about the debit card dealings that marginally picked after demonetisation but not as imagined by the public sector banks. The average value of credit card transaction in November had fallen into the sink. Card deals for the coffee payments this season has registered as low as Rs 80. Though the Card purchases are rising week after week but there is a sharp drop in the value of transactions.