Recently, crisis of credit cards came in light when ABN Amro India has chopped the credit limit of some credit card customers to a tenth. It raised the minimum amount payable to 7% of total dues from 5%.

An ABN Amro spokeswoman called the move a standard industry practice to ET, “As a responsible lender, we review card limits and take appropriate action on an ongoing basis to protect our customers and manage risk.” She had replied by an email. According to her, “The bank’s strategy could be to discourage users and get them to give up their cards or reduce their credit exposure.”

In an analysis, economictimes.indiatimes.com, an online news portal of economy and business, writes, “ABN Amro, owned by UK’s troubled Royal Bank of Scotland, or RBS, has also decided to freeze fresh retail lending, including credit card and personal loans, to arrest a pile-up of bad loans.”

On the other hand, Deutsche Bank is set to launch WorldMiles credit card against airline tickets. The card comes in two variants – Platinum and Signature.

About the card, ET writes, “While the joining fee for the Platinum variant is Rs 5,000, one will have to shell out Rs 7,500 for the Signature card. In addition, the annual maintenance fees amount to Rs 1,500 and Rs 2,500, respectively.

The card and the programme are operational on a pilot basis, and the bank is planning a full-fledged launch shortly.”

WorldMiles card allows the users to redeem points or flight miles accumulated by booking flight tickets using the card.

On the one hand, we are seeing the credit crisis that results cuts limit on cards. On the other hand, we find some advantage of WorldMiles by Deutsche Bank.

Overall, in the industry of credit cards, some banks are in the crisis while some banks are searching new market to run their business. Recently launched Corporation Bank’s Multi-utility Card was also very effective.