1. A Presentation on
The
Case study Analysis (18MS04C7)
1st Case Study Title: Credit Cards
As a part of 4th semester Curriculum Submission to
The Department of Management Science
of
Sasi Institute Of Technology & Engineering (Autonomous),
SITE
Submitted by :
Immani.Chandra Shekar
(Reg. No: 19K61E0020)
Under the Guidance of :
Mr. Mr. N. Suresh Babu Sir
Assistant Professor
2. In the last five years, the concept of credit card deals has been significantly
increased in people of India. Credit cards are not a luxury item in longer &
necessity products in urban life.
The current credit cardholders must be cautious while using and, carefully read &
understood the terms & conditions. This will assist a credit card holder best
usage of plastic money.
To prevent late fees, Penalties,& surcharges, credit card repayments are made
before the due date. This can also be used to keep business transactions flowing
smoothly and to ensure credit stability in the plastic. money market
Synopsis of the Case:
3. Questions of the Case:
Review and compare the 5 best credit cards in India in the present scenario
What the future holds for credit card business in India
Key challenges to companies entering consumer finance
Security measures to be kept in mind while handling credit cards
4. Indian Financial System
Financial Institutions/
Intermediaries
Financial Markets Financial
Instruments/Assets
Financial Services
• Regulatory
• Intermediaries
• Non-Intermediaries
• Capital Market
• Money Market
• Derivative Market
• Foreign Market
• Primary
• Secondary
• Fund/Asset Based
Consumer Credit/ Finance
Mortgages
Credit cards
Auto loans
Student loans
Personal loans etc.
• Non-Fund/ Fee Based
5. A Father said to her daughter in a shopping mall, 'Don't worry, buy whatever you want to. I
have the credit card with me. A sticker over the cash counter in a shop announced,’ credit and
debit cards are accepted. However, the question arises, what is a credit debit card?
Debit cards allow you to spend money by drawing on Own funds you have deposited at the
bank I.e. ‘PAY NOW PRODUCT’.
Credit cards allow you to borrow money from the card issuer up to a certain limit in order to
purchase items or withdraw cash I.e. ‘PAY LATER PRODUCT’.
What is a Credit Debit card?
6. Origin of Credit Card:
Credit cards were first used in the United States in the 1920s, when corporations such as oil
companies and hotel chains started issuing them to consumers for transactions made at their
Company outlets.
The Diners' Club, Inc., launched the first universal credit card in 1950, which could be
used at a number of cities.
The American Express Company launched another major card of this type, known as a
travel and entertainment card, in 1958.
Under this system, the credit card company charges its cardholders an annual fee and bills
them on a periodic basis—usually monthly.
Cooperating merchants throughout the world pay a service charge to the credit card issuer in
the range of 4–7 percent of total billings.
7. Diner's Club India Private Limited receives the credit for launching the credit card in India. The
membership of the Diner’s Club in India was deliberately restricted to a much selected
category of persons.
As the banking network did not support this scheme, it was not successful. Initially, the RBI
did not given permission to any bank to independently issue cards in the market.
The banks were required to associate themselves with other card organizations. Accordingly
banks in India, Formed a group to issue credit cards. Such as Andhra bank, Bank of boroda,
central bank of India, Canara bank, Bank of India,& Vijaya Bank embarked on the credit card
business.
It launched the credit card on 11th August 1980, Andhra bank issued its Andhra visa card in
1981.
Origin Of Credit Card In India:
8. Working Mechanism of Credit Cards:
Member Affiliate
Merchant
Establishment
Credit Card holder
Merchant bank
Credit Card
issuing bank
7.Clearing
&
Settlement
4.Purchase
of Goods &
Services
5.Charging
of Credit
Card &
Raising Bills
8.Payment of Bills
6.Submission of Bills
For Collections
2.Contract of Credit Card
3.Issue of Credit Card
9.Payment of Credit Card
e.g.: Master card or Visa card
e.g.: ICICI bank
e.g.: HDFC bank e.g.: KLM Shopping Mall
Mr. X
9.
10. To try and minimize this, credit card numbers contain a check digit. In a typical
sixteen digit credit card number, the first fifteen digits are determined by the
issuing bank, but the last digit, called the check digit, is mathematically
determined based on all the other digits.
11. Top 10 credit
cards
Joining Fee Annual Fee Best suitable for Occupation Age CIBIL
score
Minimum
income
Requirement
1.Axis bank Ace
credit card
(₹1,00,000)
₹499+ GST
(₹10,000
within 45
days)
₹ 499+GST
(>₹ 200000)
Unlimited Cashback
Both online&
offline shopping
Both salaried
& self-
employed
18-70 >=750 ₹25,000 p.m./ ₹50,000
p.m. &
₹3,00,000 p.a./₹6,00,000
p.a.
2. Amazon pay
ICICI credit card
(₹20K-60K)
Nil Nil Online shopping on
amazon
Both salaried
& self-
employed
18-60 >700 ₹25,000 p.m./₹35,000
p.m. &
₹ 3,00,000
p.a./₹4,20,000 p.a.
3.HDFC regalia
credit card(₹2
Lakhs –₹5 Lakhs)
₹2500 + GST ₹2500 + GST Travel & Shopping Salaried 21-60 >=750 ₹ 70,000 p.m.
4.Indian oil Citi
bank platinum
credit card
(₹5,000 p.m.)
₹1000+ GST
(₹5000 within
60 days)
₹1000 +
GST(₹30,000
)
Fuel Both salaried
& self-
employed
18-60 >700 ₹25,000 p.m./ ₹ 3,00,000
p.a.
5.SBI simply click
credit card
(Up to 80% credit
limit, Max of
₹15,000 per day)
Nil ₹499+GST
( ₹1,00,000)
Shopping & Dining Both salaried
& self-
employed
18-60 >700 ₹20,000 p.m. &
₹3,60,000 p.a.
12. Top 10 credit cards Joining Fee Annual Fee Best suitable for Occupation Age CIBIL
score
Minimum
income
Requirement
6.Citi premier miles
credit card
(₹80,000)
Nil ₹3,000+GST Air Miles Both salaried
& self-
employed
23-60 >700 ₹25,000 p.m. &
₹3,00,000 p.a.
7.SBI elite credit
card
(Up to 80% credit
limit, Max of
₹15,000 per day)
₹4,999+GST
(Returns the
entire
amount
₹5,000
welcome gift
voucher)
₹4,999+GST
( ₹1,00,000)
Travel, Shopping,
&Movie Tickets
upto ₹6,000 p.a.
Both salaried
& self-
employed
18-70 >=750 ₹60,000 p.m. &
₹7,20,000 p.a.
8.Yes first preferred
credit card(₹
3,00,000)
₹2,499+GST ₹2,499+GST
(₹4,00,000)
Shopping, travel,
Dining,& Fuel
Both salaried
& self-
employed
21-60 >=800 ₹2,00,000 p.m./
₹24,00,000 p.a.
9.HSBC visa
platinum credit
card(₹ 1,00,000)
Nil Nil Online shopping,
Dining, Fuel
salaried 18-65 >700 ₹4,00,000 p.a.
10. SCB super value
titanium credit card
(₹1,00,000)
Nil ₹750+GST
(₹90,000)
Shopping & Fuel Both salaried
& self-
employed
21-65 >=700 ₹55,000 p.m./
₹6,60,000 p.a.
13. 1.Axis bank Ace credit card
Axis bank ace credit card is one of the best cashback credit
cards in India. it offers the highest cashback of 2% across all
transactions along with up to 5% cashback on certain brands
& categories.
Best suitable for : Unlimited Cashback Both online& offline shopping
Joining Fee: ₹499+ GST (₹10,000 within 45 days)
Annual Fee:₹ 499+GST(>₹ 200000)
Occupation: Both salaried & self-employed
Age Limit: 18-70 Years
Minimum income Requirement:₹25,000 p.m./ ₹50,000 p.m. & ₹3,00,000 p.a./₹6,00,000 p.a.
as per ITR
14. • 5% cash back on every bill payment,DTH recharge,& mobile recharge initiated via google pay,
• 4% cash back on Swiggy,OLA & Zomato,
• 2% Cash back on all other spends,
• No upper limit or Maximum cash back earned,
• 4 free lounge visits per year at select domestic airports,
• 1% fuel surcharge waiver at all fuel stations,
• 20% discount at 4000+ partner restaurants.
Features:
Fee& charge:
• Joining Fee: ₹499+ GST (spend₹10,000 within 45 days)
• Annual Fee:₹ 499+GST(waived off spends of >=₹ 200000)
• Add- on credit card: Free
15. • Finance charges: 3.4% p.m. /49.36% p.a.
• Cash withdrawal fee: 2.5% of the amount withdrawal (Min ₹500)
• Cash payment fee: ₹100
• Over limit charges: 3% of the over limit amount (Min ₹500)
• Cheque / Auto Debit Return Fee: 2% of Amount/ Min ₹450
• Card replacement fee: ₹100
• Foreign currency mark up fee: 3.50% of the amount
• Late payment charges amount:Up To ₹100--------Nil
₹101 to ₹300----- ₹100
₹301 to ₹1000----- ₹300
₹1001 to ₹5000---- ₹500
₹5001 to ₹10,000--- ₹600
₹10,001 to above---- ₹700
16. Eligibility:
Age Limit: 18-70 Years
CIBIL score: =>750 points
Occupation: Both salaried & self-employed
Documents required:
Identity Proof: PAN card, Aadhar card, Voters ID card, Passport, Driving licence or Any other
Government approved photo ID’s.
Address proof: Passport, Aadhar card, utility bills(not more than 3 months old) or Any other
Govt. Approved address proof.
Income proof: Bank statement for the last 3 months, salary slips for the last 3 months, audited
financials for 2 years (for self-employed), Form 16 etc.
17. 2.SBI Simply Click Credit Card:
SBI simply click credit card is suitable for those who like
online shopping. it offer extra rewards & benefits on online
transactions from different partner brand like amazon.in,
book my show, clear trip, food panda & more.
Best suitable for : Shopping & Dining
Joining Fee: Nil
Annual Fee:₹ 499+GST(>₹ 1,00,000)
Occupation: Both salaried & self-employed
Age Limit: 18-60 Years
Minimum income Requirement:₹20,000 p.m. & ₹3,60,000 p.a. as per ITR
18. Features:
Welcome Benefit: Get welcome e-gift card worth ₹500 from Amazon
Annual milestone benefits:
• Get clear trip e- voucher worth ₹2,000 on reaching spend milestones of ₹1 lakh & ₹2 lakh
on your credit card.
• 1% fuel-surcharge waiver at petrol bunks on transactions between ₹500 & ₹3,000 up to
₹100per statement cycle.
• 10 times more reward points on online spends at partner websites
• 5 times more reward points on all online spends.
Fee & Charges:
• Joining Fee: Nil
• Annual Fee:₹ 499+GST(>₹ 1,00,000)
19. • Interest rate: up to 3.35% p.m.
• Cash withdrawal fee: 2.25% of the transaction amount or ₹300 per transaction
3% or ₹300 per transaction( international ATM’s)
• Rewards redemption fee (on cash form): ₹99 per request
• Late payment fee: Total Amount Due
₹0 to ₹200----Nil ₹1001 to ₹10,000---- ₹600
₹201 to ₹500--- ₹100 ₹10,001 to ₹ 25,000---- ₹800
₹501 to ₹1000--- ₹400 ₹25,000 and above------ ₹950
• Payment of dishonour fee: 2% of the payment amount or ₹450
• Statement retrieval fee: ₹ 100 per statement
• Over-limit fee: 2.5% of the over limit amount or ₹500
• Foreign currency transaction fee: 3.5% of the transaction amount
20. Eligibility:
• Occupation: Salaried or Self Employed
• CIBIL score: >700
• Minimum income: ₹ 20,000 p.m. / ₹30,000 p.m. & ₹4,00,000 p.a. ITR
Documents required:
• Card replacement charge: ₹100
Identity Proof: PAN card, Aadhar card, Voters ID card, Passport, Driving licence, letter issued by
the UIDAI
Address Proof: Passport, Aadhar card, utility bills(not more than 3 months old) or Any other
Govt. Approved address proof.
Income Proof: latest one or 2 salary slip (not more than 3 months old), latest form 16, last
3 months bank statement
21. 3.Yes First Preferred Credit Card:
Yes First Preferred Credit Card Is Suitable For Those
Who Like To Shopping, Travel, Dining & Fuel. It offer
rewards Points & benefits on online transactions and
also insurance benefits.
Best suitable for : Shopping, travel, Dining,& Fuel
Joining Fee: ₹2,499+GST
Annual Fee:₹2,499+GST(>₹4,00,000)
Occupation: Both salaried & self-employed
Age Limit: 21-60 Years
CIBIL score: >=800
Minimum income Requirement: ₹2,00,000 p.m./ ₹24,00,000 p.a. & above as per ITR
22. Features:
Welcome benefits: Get 10,000 reward points after completing first transaction.
Main benefits:
• Master card world lounge access benefits (3 visits per quarter in India)
• Complimentary priority pass membership benefits (4 visits in a C.Y at outside India)
• Master card world golf benefits (4 Complimentary rounds of green fee access per C.Y in India)
• 25% discount on movie tickets on BookMyShow.com( Subject max ₹250 p.m.)
• Preferential foreign currency mark-up of 1.75%
• Yes assistance- Dedicated concierge services Like Car, Hotal,Travel,Restaurant, movie Tickets,
Flower& gifts, Road side repair etc. referral & reservation assistance.
• 1% fuel surcharge waiver at all fuel stations across India for transaction between ₹400 to
₹5,000.
23. Reward System:
Earn Reward: >16 reward points per ₹200 spent on travel agencies & tour operators, domestic
airlines & dining.
> 8 reward points per ₹200 spent on all other categories.
Reward points redemption: you can redeem reward points from hotel booking/flight booking/
e-gift voucher/airlines/ statement cash etc. From dedicated website Yes Rewardz.com
Value: for travel booking(hotel/ flight)---------------1 Reward point = ₹0.25
for statement cash/ e-vouchers/ Airmiles-----1 Reward point = ₹0.10
Milestone benefits & bonus Reward point:
Annual milestone: Earn 20,000 bonus reward points on achieving spends of ₹ 7.5 lakhs or more
in each A.Y.
Card renewal benefits: Get 7,500 reward points on each renewal
24. Yes pay now bonus: Get 10,000 reward points on each yes pay now registration (Automatic
utility bills payment services)
Insurance Benefits: Air accident cover------ ₹1cr
Medical emergency insurance (only on foreign travel) ----- ₹25lakhs
Credit shield cover----Credit shield is the cover for outstanding credit card dues in case of
unfortunate event of the card member's death( due to accident only)
Documents required:
Identity Proof: PAN card, Aadhar card, Voters ID card, Passport, Driving licence, letter issued by
the UIDAI
Address Proof: Passport, Aadhar card, utility bills(not more than 3 months old) or Any other
Govt. Approved address proof.
Income Proof: latest one or 2 salary slip (not more than 3 months old), latest form 16, last
3 months bank statement
25. 4.HSBC Visa Platinum Credit Card:
HSBC Visa platinum credit card is best suited for shopping,
dining, fuel purchases. The card holder can also earn reward
points and get access to a host of other premium services
from the bank other premium services, zero lost card liability
& emergency card replacement.
Best suitable for : Online shopping, Dining, Fuel
Joining Fee: Nil
Annual Fee: Nil
Occupation: Salaried
Age Limit: 18-65 Years
Minimum income Requirement: ₹4,00,000 p.a.
26. Features:
• Life time free credit card (i.e. no annual charges till you continue to use the card)
• 10% cashback up to ₹2,000 in the first 90 days of issuance
• Get a movie ticket voucher worth ₹500 on spending over ₹50,000 in a calendar month (Max
₹3000 in a year at Bookmyshow.com)
• 2 rewards points for every ₹150 spent& 5x rewards on subsequent purchases made after
crossing spending amount of ₹4,00,000 (maximum 15,000 accelerated reward points).
• Get 15% instant discount on selected products & categories from Tata CLIQ.
• Fuel surcharge waiver at any fuel pump across India for transactions between ₹400 & ₹4000
(Max ₹250 per Calendar month.
• Up to 15% off dining at over 1,000 restaurants across major cities.
27. Fees & Charges:
• Joining & Annual fee : Nil
• Finance charges: 3.3% p.m. (39.6% p.a.)
• Add on fee (p.a.) : Nil
• Interest free credit period: up to 45 days
• Minimum payment due on extended credit usage: 5% of the total payment (Min ₹100)
• Duplicate statement request : ₹100 per statement
• Transaction fee for cash advances : 2.5% of transaction amount (Max ₹300)
• Late payment charge: Min payment due amount up to ₹500-----Fine ₹400
₹500 & ₹1,000----- Fine ₹500
above ₹1,000------Fine ₹750
• Over limit fee : ₹500 p.m.
• Foreign currency transaction fee: 3.50 % of the amount
28. Eligibility:
• Occupation: salaried
• CIBIL score: >700
• Minimum income: ₹4,00,000 p.a.
• Location: Residential at Mumbai, Thane, Navi Mumbai, Pune, Chennai, Bengaluru,
Hyderabad, Delhi, Noida, Ghaziabad, Gurgon,Faridabad, Gautam Buddha Nagar, Chandigarh.
Documents required:
Identity Proof: PAN card, Aadhar card, Voters ID card, Passport, Driving licence or any other
govt approved photo ID
Address Proof: Passport, Aadhar card, utility bills(not more than 3 months old) or Any
other Govt. Approved address proof.
Income Proof: Bank statement for the last 3 months, salary slips for the last 3 months.
29. 5.SCB Super Value Titanium Credit Card:
This credit card is specially designed for people who are very
strict about managing their money. This offering is made by
Standard Chartered Bank, one of the leading multinational bank,
with unmatched rewards & cash bank provided to the cardholder.
Best suitable for :Shopping &Fuel
Joining Fee: Nil
Annual Fee: ₹750+GST (Waived off on spending ₹90,000 in the year)
Occupation: Both salaried & self-employed
Age Limit: 21-65 Years
Minimum income Requirement: ₹55,000 p.m./ ₹6,60,000 p.a. ITR
Per day transfer funds limit: Min limit ₹100 to Max limit ₹49,999per transfer(per day
transaction limit ₹1,00,000)
30. Features & Benefits:
• Welcome offer benefits: Enjoy ₹1200 worth amazon pay Gift card within 30days of a card
Set-up (Limited period offer)
• Earn 5% cashback on fuel spends across all fuel stations up to ₹200 p.m. (Max ₹2000 p.a.)
• Earn 5% cashback on telephone bills on min transaction amount of ₹750( Max ₹200 p.m.)
• Earn 5% cashback on utility bills, on a min transaction amount of ₹750 (Max ₹100 p.m.)
• Complimentary priority pass allowing access to 1000+ airport lounges world wide one free
usage p.m.
• Bookmyshow vouchers worth ₹1,000-/- p.a. T&C Apply.
• Supplementary credit card & Contactless credit card issue & Secure online transaction----OTP
• Digital payment solution--- Google pay, phone pe app
• Online & mobile banking
31. • Kuch bhi on EMI(KBE): Convert your big spends above ₹5,000 to easy EMI (i.e. convert
your credit card spends into easy EMI through KBE) & also SC Credit card holder converting
his spends to EMI at the time of purchase.
• Every ₹150 spent where 1 rewards point = ₹ 0.30 (Accumulated reward points convert into
cash & minimum 500 points are required to place a reward redemption).
• Dial-a-loan: Get loan on your credit card up to ₹5,00,000 Flexible tenure from 12 to 60
months.
• Balance transfer: transfer card balance up to ₹5,00,000 from other bank credit card attractive
interest rate.
Fees & Charges:
• Annual fee----- ₹ 750 (Waived off on spending ₹90,000 in the year)
• Finance charges----up to 2.50% p.m.
32. • Cash advance limit----up to 80% of the credit limit, maximum ₹12,000 per day.
• Cash advance fee---- 3% of withdrawal or ₹300 per transaction, which ever is higher.
• Over limit charges----2.5% of over limit amount subject to a minimum of ₹500.
• Late payment fee: <= ₹100------------------Nil ₹ 101 to ₹500----------₹100
₹501 to ₹5000----------₹500 ₹5001 to ₹15,000------₹700
>=15,001---------------₹800
Documents required:
Identity Proof: PAN card, Aadhar card, Voters ID card, Passport, Driving licence or any other
govt approved photo ID
Address Proof: Passport, Aadhar card, utility bills(not more than 3 months old) or Any
other Govt. Approved address proof.
Income Proof: Bank statement for the last 3 months, salary slips for the last 3 months, audited
financials for the last 2 years (for self-employed) Form 16.
33. Future Credit Card Business in India:
Source: Reserve Bank of India, compiled by The Financial Pandora
According to data from the Reserve Bank of India, a total of INR 6.07 Lakh crores was spent
using credit cards in India.
Besides banks, many fintech firms have emerged in this space using the digital India
movement and the increase of urban spending in India. While Credit cards is one of the biggest
players in the space, large tech companies like Paytm, Flipkart and Ola too have started their
own credit cards.
34. Key Challenges:
10 Challenges for the Financial Services Industry in consumer finance:
1. Cybercrime in Finance
2. Regulatory Compliance In Finance
3. Big Data Use In Finance
4. AI Use In Finance
5. Fintech Disruption Of The Financial Service Industry
6. Customer Retention In The Financial Services Industry
7. Employee Retention In The Financial Service Industry
8. Block chain Integration In Finance
9. Customer Experience In The Financial Services Industry
10. Crossing The Digital Divide In Financial Services Marketing
35. Security Measures :
Follow our Credit Card safety tips and prevent unauthorized transactions on your card.
Keep your card with you always
Change your PIN regularly
Do not share your PIN with anyone
Check alerts and your monthly Credit Card statement carefully
Avoid using your card on suspicious websites or apps
Don’t click on suspicious links
Update your bank immediately in case your card is stolen or lost
36. Conclusion:
There are still psychological factors at play when it comes to penetration reaching
new heights. The credit card, and credit in general, are still feared by a conservative
middle-class India. Stories of high fees and prices from the past, coupled with a
general aversion to using credit unless absolutely required, necessitate a concerted
effort on the part of the credit card companies to bring down. Although
globalization is shifting attitudes toward credit, there is still a major psychological
barrier to overcome.
