Lok Sabha Question No. 1140 (UNSTARRED), answered on 2015-12-04
Subject: Credit Card Facility
Ministry: FINANCE
Asked by: RAVINDRA BABU  PANDULA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## UNSTARRED QUESTION NO . 1140

## LOK SABHA

TO BE ANSWERED ON THE 4 th December,2015/Agrahayana 13,1937 (SAKA)

:

## CREDIT CARD FACILITY QUESTION

## 1140. DR. RAVINDRA BABU

Will the Minister of FINANCE be pleased to state:

- (b) the number of credit card holders added during each of the last three years and the current  year,  company/bank-wise  along  with  the  rate  of  interest  charged  by  the company/bank from the payment defaulters during the said period, company- wise;
- ] (a) the number of companies/banks which are providing credit card facility along with the number of credit card holders at present in the country;
- (c) whether  the  Government  is  aware  that  due  to  non-regulation  of  rate  of  interest charged  by  credit  card  companies/banks,  the  credit  card  companies/banks  are charging high rate of interest per annum; and
- (d) if  so,  the  details  thereof  and  the  corrective  steps  taken  by  the  Government  to address the issue?

## ANSWER

The Minister of State in the Ministry of Finance

(a) & (b) : Details are at Annex

## (SHRI JAYANT SINHA)

.

(c) & (d) : Reserve Bank of India (RBI) being regulator, has issued guidelines vide its letter dated  July  1,  2015    on    Master    Circular  on  Credit  Card,  Debit  Card  and  Rupee Denominated  Co-branded  Pre-paid  Card  Operations  of  Banks  and  Credit  Card  issuing Non Banking Finance Companies (NBFCs) to all Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) and Credit Card Issuing NBFCs.

Further,  banks  are  advised  to  be  guided  by  the  instructions  on  interest  rate  on advances issued by RBI and as amended from time to time. Banks should also prescribe a ceiling  rate  of  interest,  including  processing  and  other  charges.  In  case  banks  charge interest rates which vary based on the payment / default history of the cardholder, the fact that higher interest rates are being charged to the cardholder should be made known to the  cardholder.  The  banks  should  publicise  through  their  website  and  other  means,  the interest rates charged to various categories of customers.

Public  Sector  Banks(PSBs)  are  autonomous  entities  and  are  run  through  their respective  board  driven  policies  on  lending  in  line  with  various  guidelines/  instructions issued by RBI. As per the RBI guidelines, each bank must have a well documented policy and a Fair Practices Code for credit card operations, which should incorporate the various guidelines  issued  by  RBI  from  time  to  time.  Banks  which  have  adopted  the  'Code  of Bank's  Commitment  to  Customers'  (Code)  will  also  have  to  incorporate  the  principles enunciated  therein,  as  amended  from  time  to  time.  The  Fair  Practices  Code  should  be available on the website of the Bank.

Source:Off-site returns as reported by banks, domestic operations

| Bank Group          | Bank Name                                          | Mar-13      | Mar-14      | Mar-15      | Sep-15      |
|---------------------|----------------------------------------------------|-------------|-------------|-------------|-------------|
| Public Sector Banks | Allahabad Bank                                     | 0           | 0           | 0           | 0           |
|                     | Andhra Bank                                        | 1,25,182    | 1,32,102    | 1,42,267    | 1,47,249    |
|                     | Bank of Baroda                                     | 1,04,000    | 1,03,561    | 1,01,406    | 1,13,790    |
|                     | Bank of India                                      | 1,21,062    | 1,30,426    | 1,31,522    | 1,45,819    |
|                     | Bank of Maharashtra                                | 594         | 0           | 0           | 0           |
|                     | Bharatiya Mahila Bank Ltd.                         | 0           | 0           | 0           | 0           |
|                     | Canara Bank                                        | 61,039      | 68,158      | 1,25,917    | 1,73,290    |
|                     | Central Bank of India                              | 40,159      | 51,192      | 1,11,940    | 1,16,761    |
|                     | Corporation Bank                                   | 72,067      | 80,268      | 96,508      | 69,478      |
|                     | Dena Bank                                          | 0           | 0           | 0           | 0           |
|                     | IDBI Bank Limited                                  | 0           | 0           | 1,049       | 3,373       |
|                     | Indian Bank                                        | 52,104      | 63,149      | 68,562      | 70,735      |
|                     | Indian Overseas Bank                               | 44,482      | 47,774      | 50,503      | 51,752      |
|                     | Oriental Bank of Commerce                          | 0           | 0           | 0           | 0           |
|                     | Punjab & Sind Bank                                 | 0           | 0           | 0           | 0           |
|                     | Punjab National Bank                               | 1,15,781    | 1,26,568    | 1,43,633    | 1,48,447    |
|                     | Syndicate Bank                                     | 56,251      | 60,887      | 64,146      | 29,802      |
|                     | UCO Bank Union Bank                                | 0           | 0           | 0           | 0 1,07,303  |
|                     | of India United Bank of India                      | 45,324 0    | 70,164 0    | 89,000 0    | 0           |
|                     | Vijaya Bank                                        | 40,506      | 41,499      | 36,885      | 41,967      |
|                     | State Bank of Bikaner & Jaipur                     | 0           | 0           | 0           | 0           |
|                     | State Bank of Hyderabad                            | 0           | 0           | 0           | 0           |
|                     | State Bank of India                                | 25,72,777   | 28,58,116   | 31,58,032   | 34,06,379   |
|                     | State Bank of Mysore                               | 0           | 0           | 0           | 0           |
|                     | State Bank of Patiala                              | 0           | 0           | 0           | 0           |
| Old Private Sector  | State Bank of Travancore Catholic Syrian Bank Ltd. | 0           | 0           | 0           | 0           |
| Banks               | City Union Bank Ltd.                               | 0           | 0           | 0           | 0 6,558     |
|                     | Dhanlaxmi Bank Limited                             | 1,522       | 3,452       | 6,362       | 0           |
|                     | Federal Bank Ltd.                                  | 0           | 0           | 0           |             |
|                     | ING Vysya Bank Ltd.                                | 0           | 1,934       | 18,041      | 0           |
|                     | Jammu & Kashmir Bank Ltd.                          | 33,517      | 37,929      | 43,576      | 47,057      |
|                     | Karnataka Bank Ltd.                                | 0           | 0           | 0           | 0 0         |
|                     | Karur Vysya Bank Ltd.                              | 0           | 0           | 0           | 0           |
|                     | Lakshmi Vilas Bank Ltd.                            | 0           | 0           | 0           |             |
|                     | Nainital Bank Ltd.                                 | 0           | 0           | 0           | 0           |
|                     | Ratnakar Bank Ltd.                                 | 0           | 55,834      | 64,232      | 45,183      |
|                     | South Indian Bank Ltd.                             | 0           | 0           | 0           | 0           |
|                     | Tamilnad Mercantile Bank Ltd.                      | 6,462       | 6,915       | 7,597       | 7,926       |
| New Private Sector  | Axis Bank Ltd.                                     |             |             |             |             |
| Banks               |                                                    | 16,93,859   | 21,36,564   | 21,75,674   | 24,78,498   |
|                     | HDFC Bank Ltd.                                     | 0 64,22,618 | 0 51,37,406 | 0 59,73,188 | 0 65,99,465 |
|                     | ICICI Bank Ltd.                                    | 37,10,020   | 38,02,878   | 39,52,923   | 44,15,529   |
|                     | IndusInd Bank Ltd.                                 | 2,28,121    | 2,27,523    | 2,94,533    | 3,39,554    |
|                     | Kotak Mahindra Bank Ltd.                           | 3,94,841    | 5,93,707    | 7,75,558    | 9,06,156    |

|                  | Yes Bank Ltd                                                                  | 0         | 0         | 0         | 0         |
|------------------|-------------------------------------------------------------------------------|-----------|-----------|-----------|-----------|
| Local Area Banks | Capital Local Area Bank Ltd                                                   | 0         | 0         | 0         | 0         |
|                  | Coastal Local Area Bank Ltd                                                   | 0         | 0         | 0         | 0         |
|                  | Krishna Bhima Samruddhi Local Area Bank Ltd                                   | 0         | 0         | 0         | 0         |
|                  | Subhadra Local Area Bank Ltd                                                  | 0         | 0         | 0         | 0         |
| Foreign Banks    | AB Bank Ltd                                                                   | 0         | 0         | 0         | 0         |
|                  | Abu Dhabi Commercial Bank Ltd.                                                | 0         | 0         | 0         | 0         |
|                  | American Express Banking Corp.                                                | 6,31,432  | 6,51,546  | 7,25,226  | 7,84,852  |
|                  | Australia and New Zealand Banking Group Limited                               | 0         | 0         | 0         | 0         |
|                  | BNP Paribas                                                                   | 0         | 0         | 0         | 0         |
|                  | Bank Internasional Indonesia                                                  | 0         | 0         | 0         | 0         |
|                  | Bank of America, National Association                                         | 0         | 392       | 2,983     | 4,461     |
|                  | Bank of Bahrain & Kuwait BSC                                                  | 0         | 0         | 0         | 0         |
|                  | Bank of Ceylon                                                                | 0         | 0         | 0         | 0         |
|                  | Bank of Nova Scotia                                                           | 0         | 0         | 0         | 0         |
|                  | Barclays Bank Plc                                                             | 0         | 0         | 0         | 0         |
|                  | CTBC Bank                                                                     | 0         | 0         | 0         | 0         |
|                  | Citibank N.A.                                                                 | 22,01,682 | 23,79,339 | 23,62,810 | 23,90,165 |
|                  | Commonwealth Bank of Australia                                                | 0         | 0         | 0         | 0         |
|                  | Credit Agricole Corporate and Investment Bank                                 | 0         | 0         | 0         | 0         |
|                  | Credit Suisse AG                                                              | 0         | 0         | 0         | 0         |
|                  | DBS Bank Limited                                                              | 0         | 0         | 0         | 0         |
|                  | Deutsche Bank ( Asia )                                                        | 0         | 0         | 0         | 0         |
|                  | Doha Bank Qsc                                                                 | 0         | 0         | 0         | 0         |
|                  | FIRSTRAND BANK                                                                | 0         | 0         | 0         | 0         |
|                  | HSBC Bank Oman S.A.O.G                                                        | 0         | 0         | 0         | 0         |
|                  | Hongkong & Shanghai Banking Corporation Ltd.                                  | 4,99,566  | 4,94,059  | 4,99,478  | 5,06,432  |
|                  | Industrial and Commercial Bank of China Limited                               | 0         | 0         | 0         | 0         |
|                  | JP Morgan Chase Bank, National Association                                    | 0         | 0         | 0         | 0         |
|                  | JSC VTB Bank                                                                  | 0         | 0         | 0         | 0         |
|                  | KBC Bank NV                                                                   | 0         | 0         | 0         | 0         |
|                  | Krung Thai Bank pcl                                                           | 0         | 0         | 0         | 0         |
|                  | Mashreq Bank PSC                                                              | 0         | 0         | 0         | 0         |
|                  | Mizuho Corporate Bank,Ltd.                                                    | 0         | 0         | 0         | 0         |
|                  | National Australia Bank                                                       | 0         | 0         | 0         | 0         |
|                  | Rabobank International (Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.) | 0         | 0         | 0         | 0         |
|                  | SBERBANK                                                                      | 0         | 0         | 0         | 0         |
|                  | SBM Bank (Mauritius) Ltd.                                                     | 0         | 0         |           | 0         |
|                  | Shinhan Bank                                                                  | 0         | 0         | 0 0       | 0         |
|                  | Societe Generale                                                              | 0         | 0         | 0         | 0         |
|                  | Sonali Bank Ltd                                                               | 0         | 0         | 0         | 0         |

Standard Chartered Bank

|           |                                          | 13,92,665   | 11,98,000   | 11,18,769   | 10,76,930   |
|-----------|------------------------------------------|-------------|-------------|-------------|-------------|
|           | Sumitomo Mitsui Banking Corporation      | 0           | 0           | 0           | 0           |
|           | The Bank of Tokyo - Mitsubishi UFJ, Ltd. | 0           | 0           | 0           | 0           |
|           | The Royal Bank of Scotland N.V.          | 73,228      | 0           | 0           | 0           |
|           | UBS AG                                   | 0           | 0           | 0           | 0           |
|           | United Overseas Bank Limited             | 0           | 0           | 0           | 0           |
|           | Westpac Banking Corporation              | 0           | 0           | 0           | 0           |
|           | Woori Bank                               | 0           | 0           | 0           | 0           |
| ALL BANKS | ALL BANKS                                | 207,40,86 1 | 205,61,34 2 | 223,42,32 0 | 242,34,91 1 |