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.

Recently, Corporation Bank announced to launch multi-utility cash card. The card can be used as a debit, credit and pre-paid card. The news came in light recently by a top official of Corporation Bank.

According to the statement, “Corporation Bank would be the first Indian bank to come out with a one-stop technical solution through a combo card — a fusion of credit, debit and pre-paid cards.” The statement was published in Economic Times online news paper.

Further ET includes one more statement that was said by B R Bhat Corporation Bank’s General Manager, “We are planning to launch the combo card this year. However, we are still fine-tuning our plans. There is this proposal and we will launch a pilot programme first … may be in Mumbai in the next six months. Though the combo card concept is widely accepted in developed countries, India is yet to witness its benefits by which a person can use a single card as a debit, credit, and pre-paid card. The bank has the infrastructure but the problem is there is no infrastructure at the user-end and we have to create that first. We can make the facility available at our ATMs but then there were the ATMs of other banks and Point of Sales. So, this may take some time.”

As per the statement, benefits of the combo card are possible in developed country. However, concept of multi-utility cards by Corporation Bank for Indian users would be possible in coming future.

Corporation Bank talks about problem of infrastructures also for uses of multi-utility cards. I think that if the card launches recently in India then it would be available on Corporation Bank’s ATMs only because of infrastructure problem.

Multi-utility cards of Corporation Bank will be surly a new technology for Indian users. The combo card is very unique just like mShop card.

Recently, Aditya Birla Group and SBI Card announced to offer co-branded credit cards to all customers of the Aditya Birla Group companies. In a press release the statement was released by Aditya Birla Group’s Chief Executive, Financial Services, Ajay Srinivasan, and SBI Card’s CEO, Diwakar Gupta.

Co-Branded credit cards of Aditya Birla Group and SBI Card will be available for 8-million customers of Aditya Birla Group companies–Aditya Birla Retail, Aditya Birla Financial Services Group (which includes Birla Sun Life Insurance and Birla Sun Life Mutual Funds), IDEA and Madura Garments.

Initiative for the card will be taken by the financial services arm of the Aditya Birla Group – Aditya Birla Financial Services.

Economic Times writes a statement of Srinivasan about the card, “The Aditya Birla Group already has a strong presence in the financial services business, as a significant player in the non-bank space. And we are committed to meet all the felt and unfelt financial needs of our target customer. Today, we take yet another step in that direction, with the signing of a MoU with SBI Card, to offer a co-branded credit card to the customers of the Aditya Birla Group.”

On the other hand, Gupta said to ET, “We are pleased to partner with the Aditya Birla Group…bringing new products that offer greater value to our customers has been an ongoing endeavor for us at SBI Card.”

Co-Branded credit cards of Aditya Birla Group and SBI Card will be made available across more than 2000 retail outlets of Aditya Birla Group companies. The news was published in ET online news paper.

It is not first co-branded card of SBI but the bank already have launched many co-branded credit cards. In spite of, co-branded credit cards with Aditya Birla Group will surly increase the financial strength of State Bank of India.

Recently, SBI had introduced mShop card with the collaboration of GE Capital. It is the second step of State Bank of India to introduce new co-branded card services in just 2 months.

Recently, State Bank of India Credit Card offered mShop from the SBI and GE Capital. mShop card is enabled for customers shop from over 100 merchants across the country. They can use the card by using their mobile phones.

“mShop offers SBI Card customers the convenience of transacting anytime, anywhere, while ensuring complete security of their transactions.” The statement is said by SBI card in a press release.

Diwakar Gupta who is the chief executive of SBI card said to ET, “We are delighted to launch mShop, yet another way to make life simple for our customers. mShop will further enhance our cardholders’ experience with SBI Card. It will also open up a new revenue stream for our business.” Both statements were published in the online news portal of Economic Times.

The mShop Card of SBI is a joint venture between the State Bank of India and GE Capital. The card offers wide range of payment and products services. mShop offers extensive access in payments for domestic consumers.

A customer can buy air tickets, cinema tickets and pay utility bills by using his mobile phones by mShop SBI credit card.

A customer has to just download the mShop application on mobile phones. In the initial step, the customer has to register on the application to begin shopping on the go.

Recently, Money Travel Currency Card by Reliance Group and World Travel Card by Punjab National Bank had been launched for tourists. Both cards had gotten good popularity by the tourist customers.

Now, the mShop has tried to cover the higher class people of the society. A customer life will surly be convenient by using the mShop card.

Currently, the mShop card has not a wide range of shopping and paying bills but in coming future; the card will surly introduce more and more possible areas of consumers needs on the application.

Recently, the biggest news came from RBI. The bank repo rate is unchanged at 4.75%. The RBI CRR is also unchanged. The bank has raised nominal SLR only 1% from 24% to 25%. According to the experts, the minimal hike will not impact on liquidity.

The GDP forecast for financial year 2010 was also unchanged at 6%. On the home loans also, there is no impact with the announcement of RBI Monetary policy. On this occasion, Governor Subbarao told the chief executives of commercial banks at the central bank’s headquarters,

“As always, the Reserve Bank will endeavor to ensure price stability and anchor inflation expectations. It bears emphasis that the Reserve Bank is mindful of its fundamental commitment to price stability. It will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively.”

Bank rate unchanged with 6%, Repurchase rate unchanged with 4.75%, Reserve repurchase rate unchanged with 3.25%, Cash reserve ratio unchanged with 5% and SLR hiked only 1% on this occasion by RBI.

In April, the repo rate and the reserve repo rate were cut by 50 basis points. RBI had cut 5% to 3.5%.

The raise of SLR to 1% will be effect from November 7th, 2009. Currently, CRR is 5%, Repo is 4.75% and 3.25% respectively which are remained unchanged by the RBI.

These minor changes affect the BSE, Sensex, Nifty and NSE. Minor losses were seen that time with the opening of stock exchange. However, it is being said by the experts that there will be no impact on liquidation by the minor changes.

The minimum hikes in statutory liquidity ratio has made mandatory for the banks also to invest more funds in specified securities. This investment should be against of deposits and some liquid cash.

There is good news for world travelers. Public sector bank, Punjab National is to launch World Travel Card. The bank has already introduced Global Credit Card earlier this year in February. Now, the company has planned to introduce World Travel Card for globetrotters.

Chief General Manager of PNB from credit card venture division, Ranjan Dhawan said to ET,

“It would be the safest and the convenient currency instrument to carry. Instead of carrying traveller’s cheque or global currency like Dollar or Pound, the World Travel Card holders would be able to withdraw local currency convertibles from any bank ATM of respective countries they visit. The holder has to pre load the card with the amount he would like to carry.”

The World Travel Card of Punjab National Bank will be introduced by November this year. This card would be pre-loaded with that amount which you want to carry along with on your tours of world.

You will be able to withdraw relevant currency of that country where you are traveling. This can be Dollar, Pound, Euro or Yen. It is just like a credit card that will be for tourists. The card will make your way easiest. Now, you needn’t to worry about currency converter. You are free to carry that currency which you want to carry. That will be relevant to your traveling country.

Yes, the World Travel Card is very good thing for world travelers but surly, it is not a new product. Recently, Reliance Group had also introduced the same card that was known as Reliance Money Travel Currency Card. The card was also for travelers. It was also equipped with multi currency.

So, there is no new offer by PNB as World Travel Card but surly, it is incorporated offer to make easier world traveling. The World Travel Card will be available for travelers only.

Online credit cards dealing are not easy now. From the security point of view, RBI has made more deep security for online credit cards dealing. The new rule is effective from 1st of August, 2009. According to the rule, you need to register and verify your credit cards to enhance one more step online security.

We have already faced credit cards fraud reports in the near time. Banks were suffered from fraud very much. There was no rule to reduce the deception but now it is available by RBI. Reserve Bank of India already announced that to use credit cards online there is needed one more step security.

During the purchasing and booking any services, we had to already fill – credit cards number, expiry date and three digits CVV security code number but now you have to know your secret 6 digits credit cards pin number also. Some banks had already made the mandatory of online login to buy or book any services. ICICI had made mandatory rule of debit cards numbers which are printed on cards, during the online transactions.

Banks had intimate to their customers when he made any transactions that exceed Rs 5,000 by SMS. It was also the rule of RBI. But all these were not effective for hackers.

So, we are talking about the new rule of RBI which is effective from 1st August, 2009. According to this announcement you need a credit card pin number also while any online transactions whether it is a service or purchasing.

The rule is same for Master cards and Visa cards both. If you are a holder of Master card then you should follow the link: http://www.mastercard.com/us/personal/en/cardholderservices/securecode/sign_up.html and have to choose your credit cards related bank. You have to register your name, credit card number, CVV number and a desired pin number which will able to make any online transaction. Visa cards holder have to follow this link: http://www.visa-asia.com/ap/sea/cardholders/security/activate.jsp and have to do same thing as Master card.

Once you complete the registration for the verification of online credit cards, you will be able to use your credit cards for any online purposes. It is mandatory and it will surly enhance the security against the fraud. I welcome the rule because it is simple and very effective against any fraud.