Credit Card

INTRODUCTION TO PROJECT

AIM & OBJECTIVE OF PROJECT The basic aim behind this project was to give a detail note on the concept of ‘Credit Cards’ along with the terms related to it and various facilities available with the credit cards. Secondly, to make the reader aware of the process of how does a credit card works. To do an analysis of services provided by foreign credit cards issuer and Indian credit cards issuers.

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Credit Card

SCOPE OF THE PROJECT The scope of my project study is limited only to credit market in India. Among all the various credit cards issuing banks i.e. Indian as well as foreign banks, only a select one are taken for the analysis.

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Credit Card

METHODOLOGY The basic theory part for the project is taken from various books and different news papers and magazines. Information regarding the banks and their credit cards is collected for the secondary source such as internet facilities and banks printed materials.

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Credit Card

INTRODUCTION OF CREDIT CARD Everyone carries a credit card these days. A credit card is basically a plastic card with a magnetic strip invented with the intention to simplify the complicated banking process for an individual in case he/she is short of cash, be it something casual like shopping or something severe like an emergency situation. Various banks and private financial organizations have now started providing credit card facility to their clients to offer them better and simpler financial solutions to their problems. A credit card generally works by giving its holder an immediate authority to purchase services and goods such as travel and hotel reservations as well as shopping for merchandise in and outside your own country. All the credit card comes with a credit limit, a predetermined amount of money which its lender is offering as credit to a credit card holder to spend wherever he wants to. Before issuing a credit card to an individual, the bank or the financial institution has a look at his/her credit rating along side verifying his/her credit history. After receiving the needful information about the applicant, the lender company issues the credit card to him. Now if the credit card holder goes shopping with his credit card, he pays the vendor through

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Credit Card

the card which is actually reimbursed to the vendor through the bank or the lender company. And finally, the cardholder then repays the bank for the entire credit amount that he has used, by paying it back through regular monthly payments. In case the cardholder fails to payback the entire balance, the bank can lawfully charge him/her with an interest fee on the unpaid amount. This exactly why a thorough credit rating check is done by the lender company for the potential cardholder. Such a measure guarantees them as a lender that an individual with a good credit rating is likely to return back the credited amount. That is why it is always better to have a good credit rating because the better your credit history, the easier it is for any individual to apply for and receive a credit card. However, a credit card holder can him/herself authorize any other person to use his card for purchase of any goods or services willingly. In such cases, it is the primary cardholder who is accountable for paying back all the transactions made through his or her account, eventually.

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Credit Card

Every banking and other financial institution has its own company policies and conditions regarding the credit limit as well as the time allowed to pay it back. Both secured and unsecured types of credit cards are issued by the various lender companies and it is your choice on which one you want to opt for. Sometimes, it also depends on your credit rating. A very poor credit history might force you to opt for a secured credit card. Whatever be the case, what needs to be remembered always is that credit card is not our money till the time we do not repay it back. It is a loan that we take from the bank or the lender company. This facility provides us to buy first and pay later, but paying it back later is a must or you may never come to know when you get trapped in the vicious circle of credit card debts.

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Credit Card

History of credit card

Ideas which could be considered able to radically change our world are often called utopian ideas. ‘Looking Backward’ is a utopian novel by Edward Bellamy, a lawyer and writer from western Massachusetts, and was first published in 1888. This novel has first reference of the term “credit card” even though it did not exist in real term that time.

The real credit card was the successor of a variety of merchant credit schemes. Merchants started issuing cards to their frequent and valued customers. Western Union started issuing charge cards to its frequent customers in 1914. It was used in USA, the 1920s, to sell fuel to a growing number of automobile owners. In 1938 several companies started to accept each other’s cards and that was the beginning of general purpose credit card. The Diners Club produced the first “general purpose” charge card; it was followed shortly thereafter by American Express.

Bank of America created the Bank Americard in 1958, a product which eventually evolved into the visa system. Master card came to being in 1966 when a group to being in 1966 when a group of creditissuing banks established Master charge.
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Credit Card

List of Banks offering Credit Card CENTRAL BANK DEUTSCHE BANK KOTAK BANK AXIS BANK (UTI) HDFC BANK SBI BANK BANK OF RAJASTHAN HSBC BANK SCB BANK CITI BANK ICICI BANK UNION BANK OF INDIA

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Credit Card

Theme of credit card Credit card is an instantaneous credit facility preapproved by the issuing authority to the credit card holder. At the time of purchase from shops, the cardholder signs a concent slip. This is authorization to merchant to get money from the bank on his behalf. This is also an instruction to the bank to pay the merchant. Bank pays merchant and bills periodically to the card holder. He is expected to pay certain minimum percentage of the bill compulsorily within specified period. This is free credit period i.e. no interest is payable. Amount unpaid and rolled over to the next billing cycle attracts interest rat as decided by the bank. Most users are supposed to pay annual fee for the card membership. All are also required to pay relevant taxes through their bills.

1. Size: A credit card is a thin plastic card, usually 3-1/8 inches by

2-1/8 inches in size.

2. Front side: front side contains following information:

• Printed: 1. Name and Logo of the Issuing Bank

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Credit Card 2. Name and Logo of Co-branding Merchant

Establishment, it any. 3. Name and Logo of member affiliate (eg. Visa, Master, etc.) 4. Photo of the cardholder/ his family ( optional feature ) 5. Picture (Any deity or scene of holder’s choice) • Embossed: 1. Period of Validity as Valid from Date and Valid Thru Date. 2. Name of the Card Holder. 3. Card Number

The numbers found on credit cards have a particular structure, and share a common numbering scheme.

The card number’s prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. Worldwide there is a uniform numbering arrangement for bank and VISA/Master

Identification. The last ten digits are the individual account number.

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Credit Card 3. Back Side: Back side contains following information:

a) The stripe on the back of a credit card i.e. a magnetic stripe, often called a magstripe. (CVV1 is embedded in this stripe). b) Credit Card Number in print c) The Card Verification Value or Code (CVV or CVC) 2. CVV2 is always the final group of numbers printed on the back signature panel of the card. d) Contact Numbers of the issuing bank e) Space for holder’s signature
f) Terms and disclaimer clause of the bank.

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Credit Card

Features of Credit Card

Annual Membership Fee Most members are expected to pay annual membership fee to the issuing authority. This is towards maintenance of the card account by the bank or ‘service charges’. These are waived off to some customers who transact significant value through their credit card. Bankers’ earning is by interest income on credit cards. More the usage of card, more the income to the bank. Hence bank encourages more use of card and when it is achieved, bank waives off annual fees. This is a reward for using the card.

Minimum Payment All the issuers insist upon minimum payment by the cardholder for every billing cycle. This is usually 5% of merchant transaction bills. Full amount is to be paid for EMIs of the loan. It is payable within 20

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Credit Card days of billing. This is free credit period i.e. no interest is payable. Amount unpaid and rolled over to the next billing cycle attracts interest rate as decided by the bank.

Rate of Interest (Annual Percentage Rate (APR) Rate of interest for the amount rolled over to the next billing cycle is usually high. In India it is around 2.5% to 3% per month. Hence it is very costly to rollover such amount. For the cardholder, it is much cheaper to pay on time.

EMI Conversions When outstanding amount on the card is high or when purchase is for high value (for eg. TV set, Laptop, etc.) the it is not possible to pay full amount within one billing cycle. Carrying forward is expensive as interest rate is prohibitive. Banks offer to convert such purchases / outstanding to Equated Monthly Installments (EMIs). Rate of interest to these schemes is relatively lower (around 16% per annum) but still high in absolute terms.

Balance Transfer Bankers encourage cardholders to transfer their outstanding dues to other issuers’ cards to their bank card. This transfer is again at a concession rate of interest.
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Credit Card

Personal Loan Issuers extend personal loan facility to the cardholders. It may be noted that EMI or Balance Transfer or Personal Loan are all in the form of loan only. A cheque favoring the cardholder or nominated beneficiary is issued by the bank in all these cases. EMI payable is charged to the card in monthly billing statements.

Insurance Most bankers insure the life of cardholder at concessional rate and assign insurance proceeds towards outstanding bills on the card. In

case of eventuality, insurance proceeds meet banker’s outstanding dues and remainder amount is paid to the heirs of the cardholder.

ATM Credit Card users can withdraw cash from ATMs with pre-specified limits.

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Credit Card

Eligibility to get a Credit Card

Income criteria • Individual – Rs. 60,000 p.a. (Gross) and above. • Company / Firm (Paid up capital) – Rs. 3 lakhs and above

Documents to be submitted • If card is applied on Company / Firm account: Latest balance sheet, profit and loss account, Board resolution.

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Credit Card • If card is applied on personal account: Latest Salary slip / form 16 or IT returns copy. • Photograph of applicant and address proof.

Besides this issuers carry out credit check through their agencies. The factors which go against issuance are:

1. Civil and Criminal court judgments against applicant 2. Previously declined credit card or loan applications 3. defaults on payments of any kind 4. Mortgage arrears 5. Property repossession 6. Previous cancellations of credit cards by a credit card issuer. 7. Too many credit card applications

8.Official and residential surroundings. For instance house in unauthorized structure is a strong negative factor.

It is important to maintain a good credit rating wherever possible as it may counts in eligibility check for all financial purposes.

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Credit Card

Gold, silver and Classic/Exeutive are the terms used by issuing banks to differentiate between the levels of services offered on each. On the premium segment is the gold card which gives higher insurance covers, more privileges and discounts. Here an element of prestige does form an important factor for subscribing to such cards. But it does come at a cost as these cards have the highest fees and service charges associated with them. Also eligibility (income) criteria for gold are high and decreases to silver, executive, student etc.

Add-on cards are issued on demand to the family members of the cardholders. Bill payment responsibility is of the main cardholder only no eligibility of add-on card holder is carried out.

Parties to a credit card

Issuer Banks or finance organization of cardholder and he is expected to use it for purchases, etc.
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Credit Card

Cardholder Card is in possession of cardholder and he is expected to use it for purchases, etc.

Merchant Establishments Such as shops, malls, restaurants, hotels, railways, airlines accept payment by card. They get authorization from the cardholder at the time of payment. Actual payment comes to them from the issuer.

Payment Networking Organizations Visa and MasterCard are popular umbrella organization in payment industry.

Benefits of credit cards

To Cardholders
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Credit Card

Convenience It is very convenient to carry a card as compared to cash. Its acceptance is better than cheques. Risk of theft is less and if stolen, stoppage and recovery is better than cash and cheque. It is even more convenient for unplanned purchases and needs as one may not carry enough cash every time.

Spot Credit As and when needed, credit is available. It’s pre-negotiated credit limit which can be availed of whenever desired. Credit is free of interest till first immediate billing cycle. This improves purchasing power.

Easy Payments Minimum balance payment for each bill is a must. Over and above this it is cardholder’s ability and willingness to pay for each card bill.

ATM Cash Cash can be withdrawn from ATMs as and when required. This is very important feature in countries like India where cash usage is

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Credit Card more as compared to other modes of payments. Thus card improves liquidity and credibility of the cardholder.

Reward Points and Discounts These are additional benefits provided by issuer for usage of card. Reward points can be converted to discounts and gifts as per the catalogue of the issuer.

Privileges Access to VIP lounges at the airport and star hotels is an additional privilege for the cardholder.

Other Loans Bankers provide personal loans, car loans, etc. with some priority and ease if cardholders’ payment history is good.

To issuers

Profit

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Credit Card

APR is high on credit cards as these are high risk unsecured loans. If cards are issued with proper due diligence then defaults is less and bankers’ profits in the card business are high.

New Customers New customers get hooked to bankers as cardholders. It is easy to sell them other products such as housing loans, auto loans, and bancassurance products later on.

Brand Image Card issuing bank creates better brand image in the minds of its customers as compared to other banks.

ATM Sharing Fees Bankers who establish their own ATMs get sharing fees from other banks if other banks’ customers use their ATM. This is additional income for them.

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Credit Card

Merits Of Credit Card Buy goods now and pay later If you pay off the full balance at the end of the month then you've earned 'free' money. This is because Credit Card bills are settled a month in arrears.

If you want to buy a large ticket item think about timing the purchase so you won't have to pay for a month or so after the purchase

This strategy also works beautifully if you put your purchases on one credit card and then move the debit balance to another Card that offers a 0% interest on balances for x number of months (usually between 6-12 months)

Note, there is usually a fee of between 2% - 3% to transfer a balance

Incentives Many credit cards offer loyalty schemes, point reward systems, air miles etc. If you use your credit card a lot and always pay off the

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Credit Card balance then with the right reward scheme you can often generate excellent savings off future purchases or air flights etc.

Free Insurance: Often when you buy an airline ticket or a holiday using your credit card you'll get free travel insurance. Always check what's on offer with your individual Card. Note, the travel insurance offered will normally not be comprehensive as if a separate stand-alone policy is bought. Purchase Protection: Buy some faulty goods with your credit card and they'll normally be 100% insured for a month or two. Insurance can in some cases also offer cover if the item is lost or stolen. Again, it’s important to check to see what cover is or isn’t available as some Cards are far better than others. Loss Protection: If you head out shopping with £500 in your pocket and it’s stolen there’s little you can do. But if you carry little cash preferring to pay by plastic there’s far more security. Even if your card is stolen it just takes a simple call to your provider to put a stop to it and re-issue a new card.

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Credit Card

Demerits of Credit Card

To Cardholders

Cost Cost of card is high. Annual fee, APR, penalties, ATM usage charges, lost card replacement charges is significant.

Overspending As purchasing power is not limited to cash, people tend to spend more. It’s a machine to provoke consumerism in the society. It’s in favor of capitalism and against socialism.

Habitual Borrowing With popularity of cards, stigma on loans as negative feature of life, has vanished. Borrowing and enjoying life is no longer looked down upon. Unknowingly everyone has become a habitual borrower. Incidentally no religious book approves of this style of living.

To issuers

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Credit Card

Risk

Cards are unsecured loans. Recovery mechanism does not have any recourse on assets. Legal backup thus is limited. Establishing a recovery system within these limitations is a high cost affair.

Servicing Cost Cards are technology oriented. Cards are costly. Issuance process, billing and payment processing is a laborious and costly affair.

Utilization Dependency Bank earns well on cards if cards are used frequently by the holders. Indian psyche is not very tuned to careless use. Cards which are not used much are in fact cost burden on the banks.

Payment Habits APR Interest earnings are significant provided part of billed amount is rolled over to the next billing. If many customers pay full bill every time, there is no APR earning for banks.

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Credit Card

Profile of Central Bank Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank was the ultimate realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank as the 'property of the nation and the country's asset'. He also added that 'Central Bank lives on people's faith and regards itself as the people's own bank'. During the past 95 years of history the Bank has weathered many storms and faced many challenges. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry. Further in line with the guidelines from Reserve Bank of India as also the Government of India, Central Bank has been playing an

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Credit Card increasingly active role in promoting the key thrust areas of agriculture, small scale industries as also medium and large industries. The Bank also introduced a number of Self Employment Schemes to promote employment among the educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as an All India Bank, due to distribution of its large network in 27 out of 28 States as also in 4 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3356 branches and 237 extension counters at various centres throughout the length and breadth of the country. In view of its large network of branches as also number of savings and other innovative services offered, the total customer base of the Bank at over 25 million account holders is one of the largest in the banking industry. Customers' confidence in Central Bank of India's wide ranging services can very well be judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also almost all major corporate houses in the country.

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Credit Card

General Managers Name Shri Abhijit Ghosh Shri G. P. Chitnis Shri N. Narayanan Shri H. K. Vesuna Shri K. A. Somayajulu Smt. D. Vasundhara Krishnamurthy Shri P. Sreedharan Shri P. V. Raveendran Shri R. N. Swami Functional Areas (Department) Zonal Manager, Pune HRD / Planning & Development / New Initiative Dept. Zonal Manager, Lucknow Credit / Credit Policy & Monitoring International Division / Treasury / Central Card / Merchant Banking Dept. (MBD) Credit Risk Management / General Administration Dept. Zonal Manager, Kolkata Information Technology / Accounts Recovery / Legal

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Credit Card

FACTS OF CENTRAL BANK The following are some of the facts of Central Bank of India.

1921: CBI Introduction to the Home Savings Safe Deposit Scheme to build saving/thrift habits in all sections of the society.

1924: An Exclusive Ladies Department to cater to the Bank's women clientele.

1926: Safe Deposit Locker facility and Rupee Travellers' Cheques.

• • • • • •

1929: Setting up of the Executor and Trustee Department. 1932: Deposit Insurance Benefit Scheme. 1962: Recurring Deposit Scheme. 1976: The Merchant Banking Cell was established. 1980: Centralcard, the credit card of the Bank was introduced. 1986: 'Plantinum Jubilee Money Back Deposit Scheme' was launched.

1989: The housing subsidiary Cent Bank Home Finance Ltd. was started with its headquarters at Bhopal in Madhya Pradesh.
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Credit Card

Central Bank International Banking The International Banking division of Central Bank of India offers special benefits to To become a Central Bank of India account holder, all you need to do is to open a Non-Resident (External) Account in Indian Rupees or a Foreign Currency Non-Resident Account (FCNR) in Pound Sterling, U.S. Dollar, Deutsche Mark or Japanese Yen. Choose your place of transaction from over 3110 branches across 27 Indian states. This offer is only applicable to Indian nationals or those of Indian origin residing abroad, overseas companies, partnership firms, societies and other corporate bodies, which are owned to the extent of atleast 60% by non-residents of Indian nationality/origin and overseas trusts in which atleast 60% of the beneficial interest is irrevocably held by such persons. Either joint holders or a member of the family who has been granted the power of attorney or a letter of authority are entitled for transaction of such accounts, provided they make withdrawals for local payments only. The resident power of attorney holder will not be allowed to repatriate funds held in the accounts outside India and make gift payments.

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Credit Card

Central Bank of India Central Card Electronics Central Card is called as Credit Card The Centralcard Electronic is the most convenient way to avail interest-free credit for almost 25-55 days on your purchases made across the globe at the shops/merchants where MasterCard Electronic Card is accepted. The CentralCard Electronics offers the following features:
• • •

It is designed for use only at electronic terminals. This card cannot be used at non-electronic terminals. The account information is printed and not embossed on the card Insurance cover to the extent of credit limit or Rs.25,000/-per day for each card which ever is more for misuse of lost card. Ease and convenience in purchasing. Cash Advance upto Rs.5000/- for Domestic card and upto Rs. 15,000/- for International card. There is a nominal fee of Rs.50/- for a photo card.

• •

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Credit Card Card Highlights Card Class Card Type Issuer Offered Type Rewards Standard Classic Central Bank of India MasterCard

Credit Card Rates Intro Rate Introductory Period Interest Rate 0 month 3% per month Purchases Interest 0% per month Balance Transfers Intro Interest 0% per month Rate Introductory Period Interest Rate 0 month 0% per month

Fees & charges Annual Fee: The annual fee is Rs.400 (Rs.175/- for staff), which will be charged every year the card is issued / renewed every two years

Add On Card Fee: Available

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Credit Card Cash advance limit: Cash Advance upto Rs.5000/- for Domestic card and upto Rs.15,000/- for International card. Cash Advance transaction fee: 2.5% of transaction Amount. It can be availed at ATM of Master Card Network also. Rs.100/- extra will be charged for this. Free Credit period: Min.: 25 days Max.: 50 days

Limited Lost Card Liability: Zero lost card liability Upto credit limit from the time of reporting insurance cover to the extent of credit limit or Rs 25,000 per day for each card which ever is more for misuse of lost card. Replacement Card Charges: Rs.400 for taking new card Service Tax: 12.36%

Services 1. Add On Card 2. Internet Web Based Access

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Credit Card 3. Access to 24-Hour Customer Care Centre 4. Global Emergency Assistance Service
5. Free accident insurance cover upto Rs1,00,000

Eligibility Criteria
1. Annual Income is Rs. 50,000 2. Age min 21 yrs.

3. Documents Required

A copy of the Salary Slip/Form 16/IT return should be provided as proof of income. YHolder of PAN as an Income Tax payee. (Applied for status is acceptable). Identifiable and clearly spelt by out residential and

official/business address either owned by the person or leased/rented/provided the employer.

Central Bank of India Central Card Main Features

For a fresh applicant the card is issued for one year, which is renewed for 2 years on each expiry thereafter.
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Credit Card

For photo-card Rs.50/- is charged each time the photo is embossed. The cheque encashment facility limit is Rs.2,500/- which is free of charge and available at all branches of Central Bank of India. Either you can avail the total amount of Rs.5,000/- in one month by way of signing the chargeslip i.e. through cash advance facility or if you so desire, you can avail of both the facilities. Then under cheque encashment you are allowed to have Rs.2,500/- (maximum) and the rest through cash advance facility, since the aggregate limit when taken together is Rs.5,000/- per month only.

If you do not pay the card usage within the stipulated due date, service charges @ 2.5% per month is levied (computed monthly) until the outstanding is fully paid off.

Card Highlights Card Class Card Type Issuer Offered Type Rewards Standard Classic Central Bank of India MasterCard, Visa

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Credit Card

Credit Card Rates Intro Rate Introductory Period Interest Rate 0 month 3% per month Purchases Interest 0% per month Balance Transfers Intro Interest 0% per month Rate Introductory Period Interest Rate 0 month 0% per month

Fees & charges Annual Fee: Rs400 (Rs.175/- for staff) for one year the time of renewal an annual fee of Rs.400/- is charged per annum. Since the

card is renewed for a period of two years, the renewal charge is recovered from you in two installments @ Rs.400/- per annum. Joining Fee: Rs300 (Rs.50/- for staff) Add On Card Fee: Add-on cards to the spouse, son or unmarried daughter. The fees of the add-on card is same as the parent domestic card. Cash advance Limit: Cash advance facility upto a maximum fixed limit of Rs.5,000/- per month.

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Credit Card

Cash Advance Transaction Fee: 2.5% of transaction Amount Free credit period: Min.: 25 days Max.: 50 days Limited Lost Card Liability: Upto Rs.75,000/- from the time of reporting Replacement Card Charges: Rs.400 for taking new card Service Tax: 12.36% Services 1. Add On Card 2. Internet Web Based Access

3. Access to 24-Hour Customer Care Centre 4. Global Emergency Assistance Service
5. Group Accident Insurance Scheme coverage upto Rs. 1lakh

Eligibility Criteria
4. Annual Income is Rs.75,000 5. Age min 21 yrs.

6. Documents Required

A copy of the Salary Slip/Form 16/IT return should be provided as proof of income.
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Credit Card

YHolder of PAN as an Income Tax payee. (Applied for status is acceptable). Identifiable and clearly spelt by out residential and

official/business address either owned by the person or leased/rented/provided the employer.

Different types of credit card of central bank Central Bank MasterCard, Visa and Visa Gold MasterCard/ Visa/Visa Gold When you carry a Central Bank MasterCard, Visa or Visa Gold, you carry security, convenience, and buying power wherever you go. Your MasterCard, Visa and Visa Gold are accepted worldwide as payment for all kinds of goods and services. You can obtain cash advances from your credit line at all banks and ATMs that accept MasterCard and Visa, anywhere in the world.

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Credit Card Your Central Bank MasterCard, Visa and Visa Gold are serviced and maintained by Central Bank and your can receive assistance with card issues at any of our Central Bank locations, or by calling our Client Services Department. Some of the advantages of a Central Bank Credit Card are as follows:
1. 2. 3. 4.

No fees for cash advances No fees for over limit balances No fees for balance transfers Late fee $5.00

5.

No finance charge on new purchases when the entire new balance is paid in full at least 25 days from the statement closing date Monthly payment can be made in any amount from the minimum payment to the full balance to the account each month Zero liability for unauthorized purchases Monitoring system to help prevent fraud by identifying unusual account activity

6.

7. 8.

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Credit Card

Visa or Visa Gold In addition to the above, the Central Bank Visa Gold card offers you the following benefits: 1. A credit line or $5,000 - $50,000 2. Travel and Emergency Assistance Services 3. Travel accident insurance of $150,000 4. Warranty manager services 5. Auto rental insurance (personal use only) 6. Emergency Card/Cash Disbursement 7. Visa Extras Rewards Program The Visa Gold Card offers the advantages of world-class credit and unbeatable Central Bank service

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Credit Card

Credit Card Rates and Terms Protect your Central Bank Visa Card online Central Bank, in cooperation with Visa, is giving you the best way to pay on the World Wide Web when you use your Central Bank Visa card. Verified by Visa provides you with a way of increasing security with online transactions with no cost to you. The next time you shop at participating online stores, you'll see some new screens. Enter the information requested to activate your card in order to complete your transaction. It only takes a moment, and then your card will have password protection whenever you shop online. Protect your Central Bank MasterCard online Central Bank, in cooperation with MasterCard, is giving you the best way to pay on the World Wide Web when you use your Central Bank MasterCard. MasterCard Secure Code provides you with a way of increasing security with online transactions with no cost to you. The
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Credit Card next time you shop at participating online stores, you'll see some new screens. Enter the information requested to activate your card in order to complete your transaction. It only takes a moment, and then your card will have password protection whenever you shop online.

MasterCard Guide to Benefits

Standard MasterCard Benefits

1. Worldwide Acceptance With acceptance at millions of locations worldwide, no payment card is more widely accepted globally than MasterCard. 2. Zero Liability Pay only for purchases which you have authorized on your MasterCard. So long as your account is in good standing. You

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Credit Card have exercised reasonable care in safeguarding your card, and you have not reported two or more unauthorized events in the past twelve months. Unauthorized purchases are not your responsibility.

3. MasterCard Global Service

MasterCard provides emergency customer service anytime, anywhere and in any language. Emergency services such as Lost or Stolen Card Reporting, Emergency Card Replacement and Emergency Cash Advance as well as ATM location information are available.

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Credit Card

Gold MasterCard & Platinum MasterCard Benefits

1. Rent & Repair Includes MaserRental Insurance, Extended Warranty Coverage, Master RoadAssist service, Travel assistance Services, and MasterCard Global Service. 2. Rent & Save

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Credit Card Includes MaserRental Insurance, Extended Warranty Coverage, Master RoadAssist service, Travel assistance Services, and MasterCard Global Service. 3. Shop & Go Includes Baggage Delay Coverage, Extended Warranty Coverage, Hotel Burglary Coverage, Lost or Damaged Luggage Coverage, Purchase Assurance Coverage, Master RoadAssist Service, Travel Assistance Services, and MasterCard Global Service. 4. Smart Shopper Includes Extended Warranty, Purchase Assurance Coverage, Satisfaction Guarantee Coverage, Master RoadAssist Services, Travel Assistance Services, and MasterCard Global Service. 5. Value Shopper Includes Extended Warranty Coverage, Price Protection Coverage, Purchase Assurance Coverage, Master RoadAssist Services, Travel Assistance Services, and MasterCard Global Service. 6. Travel Plus Includes Baggage Delay Coverage, Hotel Burglary Coverage, Purchase Assurance Coverage, Satisfaction Guarantee

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Credit Card Coverage, Master RoadAssist Service, Travel Assistance Services, and MasterCard Global Service
7. Taveler

Includes MasterRental Insurance, Lost or Damaged Luggage Coverage, Hotel Burglary Coverage, Master RoadAssist Service, Travel Assistance Services, and MasterCard Global Service.

Benefits of world MasterCard & world Elite Master Card World MasterCard Benefits Includes No Pre-Set Spending Limit with Option to Revolve (minimum $5,000), Year-End Account Summary, Identity Theft Resolution Services, Worldwide Automatic Travel Accident Insurance, Trip Interruption Insurance, Car Rental Insurance / Collision Damage Waiver, Extended Warranty, Price Protection, MasterCard Unique Experience™, Rewards Program and MasterCard Global Service. Explore the many benefits of World MasterCard

World Elite MasterCard Benefits Includes Year-End Account Summary, Identity Theft Resolution Services, Worldwide Automatic Travel Accident Insurance, Trip Interruption Insurance, Lost or Damaged Luggage Insurance,
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Credit Card Roadside Assistance Service, Car Rental Insurance /Collision Damage Waiver, Extended Warranty, Purchase Assurance, Price Protection, Personal Travel Consultant, Concierge Service, Airport Lounge Access, MasterAssist™ Travel Assistance Services, and MasterCard MasterCard Unique Experiences™, Rewards Program

MasterCard Global Service. Explore the many benefits of World Elite

Types of Visa or Visa Gold Visa or Visa Gold

1. Visa Classic

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Credit Card

Enjoy the convenience, security and reliability of Visa Classic the most widely held Visa card in the world.

From renting a car and securing hotel reservations to buying books online and making everyday purchases, Visa Classic is recognized and accepted by merchants all over the world, both on and offline.

2. Visa Gold

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Credit Card

Step up to Visa Gold Whether you are a new customer with a strong credit history or an established Visa Classic cardholder, step up to Visa Gold – the gold standard for excellent service and acceptance.

With Visa Gold, you’ll enjoy a high spending line typically over US $5,000, a revolving line of credit, emergency card replacement, and cash disbursement services when you are traveling. Visa Gold cardholders will also receive travel accident insurance, medical and legal referral and assistance, and toll-free access to the Visa Emergency Assistance Center 24 hours a day, 365 days a year.

3. Visa Platinum

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Credit Card

A distinctive card for distinguished users

Enjoy the service and recognition you deserve. Visa Platinum comes with a large spending limit, personalized concierge services for travel and entertainment assistance, US $ 5000,000 travel accident insurance, and an attractive range of exclusive benefits. 4. Visa Infinite

A world beyond your expectations Visa Infinite offers excellent spending power, convenience,

personalized privileges, rewards and service. Visa Infinite is by invitation only.
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Credit Card

5. Visa Debit

A smart way to pay pay for you purchases directly from your bank account. Your monthly bank statement or passbook will provide your with a record of all your purchases, making it easier to manage your expenses. Use your visa debit card instead of cash to pay for your everyday purchases – whether you are shopping at the grocery store, dining at a restaurant, filling your car with petrol, surfing the internet or buying

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Credit Card the perfect gift on your travels. You can also use it to withdraw cash from ATMs around the world. Visa Debit makes shopping fast, convenient and safe, and is accepted at millions of locations worldwide - giving you purchasing power whether you are at home or traveling.

6.Visa Mini

The world’s smallest Visa card Visa mini provides your with an additional convenient way to pay for your Visa purchases. Visa Mini is nearly half the size of a regularsized Visa Card. With a perforated hole in the bottom left corner, you can attach the Visa Mini to your key chain, mobile phone or other carry-along device. A breakthrough in cad design Whether you are going out for lunch with colleagues or friends, shopping at your neighborhood store, clubbing or dancing, on vacation or even when you are out for a jog! Visa Mini is the answer
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Credit Card

to your demand for increased convenience and mobility in your everyday life. Lifestyle products such as mobile phones, personal digital assistants and laptops are becoming more compact, and so too has your Visa card. At only 40 millimeters by 66 millimeters, Visa Mini is nearly half the size of a standard-sized Visa card. With a perforated hole at the bottom left corner, you can easily attach your Visa Mini to a key chain, mobile phone or other carry-along device

A companion card to your standard Visa Card Visa Mini may be issued as a companion card to your standard Sized Visa card, providing you with another convenient way to pay for your purchases using Visa. Visa Mini may also be issued as standalone Visa card at the option of your financial institution. While Visa Mini is nearly half the size of a standard card, the Visa Mini card works just like a standard-sized Visa card at merchants who use electronic terminals with card swipe readers. At ATMs and
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Credit Card

terminals requiring full card insertion, the standard-sized Visa card should be used. 7.Visa Smart

The intelligent card The smart Visa card has a built-in advantage – a computer chip that stores more than 100 times the information contained on a “regular” Visa card. Your will enjoy more benefits in a payment card with Visa Smart. Imagine your reward programs, discounts, special offers, and club and store cards – all in one place, combined with the benefits your expect from Visa.

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Credit Card

Visa Smart Card Visa Smart embodies Visa’s vision of universal commerce of using smart cards in the future, so that you can have the ability to transact anywhere, anytime, anyhow. At Visa, we believe in using smart cards to get what you want, so that you can enjoy more benefits in a payment card.

What is a Visa Smart Card? A Visa smart card is a versatile payment card with the intelligence to simplify your life. Visa’s smart cards integrate a computer chip that stores more than 100 times the information contained on a traditional magnetic stripe Visa card. The chip allows the addition of multiple functions on top of your Visa credit or debit payment. Soon you'll be able to combine your store and discount cards in one place and still enjoy the benefits you expect from Visa, globally and on the internet. Whether you're standing in line or surfing online, the Visa smart card is the smarter way to shop
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Credit Card

8.Visa Prepaid Cards

The convenient and secure alternative to cash or checks Count on Visa prepaid cards to provide easy, convenient, and secure ways to pay anytime and anywhere. Visa TravelMoney is a pre-paid travel card that gives you 24-hour access to your travel funds in any local currency from close to one million ATMs in over 150 countries 9.Verified by Visa

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Credit Card

Same card added security online Verified by Visa is an online service that makes Internet transactions safer by authenticating your identity at the time of purchase. Adding

a password to your existing Visa card, Verified by Visa ensures that only you can use your Visa card online. It's easy to activate for your existing Visa card, and it’s free.

10.Visa PayWave

Visa PayWave is an exciting development in consumer payment. It aims to offer value to consumers through speed, convenience and security

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Credit Card

Benefits for Cardholders In order for any new card program to achieve mass adoption by consumers, it must be perceived as offering value. Visa PayWave provides a new way to pay for the cardholder with the convenience and appeal of contactless payments. There are significant enhancements over the conventional magnetic stripe payment cards

1. Increased convenience Visa PayWave reduces the dependency on cash and the need to visit the ATM so often. Small ticket purchases, which are usually paid in cash, are now possible with Visa PayWave. Consumers need not fumble for cash, count change or worry if there is enough cash for the purchase. In addition, there is no need for a signature or PIN. 2. Reduced waiting time With Visa PayWave, cardholders need to just tap or ‘wave-andgo’ for payment. At the issuing bank’s option, there is no
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Credit Card signature or PIN required for authorisation. As a result, the payment transaction can be performed very quickly, and is less cumbersome than handling cash. Queuing time can be potentially shortened if other shoppers in the line are also using Visa PayWave. Watsons, a major personal care chain in

Taiwan, stated that by accepting Visa PayWave, they experienced a 77 percent reduction in queuing time within their outlets 3. Enhanced security The cardholder now has full control of the transaction, as the Visa PayWave card never leaves the cardholder’s hands. Cardholders may even be able to make payments without removing their Visa PayWave card form their wallet or handbag.

4. Exciting consumer experience A contactless application makes mature payment products more interesting to cardholders because of the novelty of contactless payment. Even though the payment product is essentially the same, cardholders perceive it as new and innovative. Visa PayWave can eventually integrate into the consumer’s lifestyle and build the affinity to pay for small items. Using contactless payment could potentially be an enjoyable experience for consumers even if they are only used at certain
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Credit Card locations. Unlike cash, card payment allows consumers to track their spending habits on low-value purchases. It could also encourage greater spending, as the consumer is no longer constrained by the amount of cash on hand.

5. Loyalty rewards It is possible to reward the cardholder, even for small-value payments, if the use of the Visa PayWave card is associated with a loyalty program. 6. Form factors Visa PayWave provides the opportunity to enable payment using a number of innovative form factors such as mobile phones, key fobs, and other personal devices that suit the cardholder’s experience. lifestyle and provide a seamless payment

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Credit Card

Types of Visa credit card Visa Credit Card having three types are as follows. 1. Standard Credit Cards 2. Rewards Credit Cards 3. Premium Rewards Cards

1. Standard Credit Cards

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Credit Card Starting out, starting over, or simply looking for the convenience of a Visa credit card? Visa Standard credit cards are an ideal choice. Regardless of which one you choose, you'll enjoy: • Flexibility to make purchases, pay bills or get cash • Convenience of worldwide acceptance • Security of Visa's multiple layers of protection

If you're a student, a young couple, an individual re-establishing credit - or if you simply want the convenience of a credit card in your wallet a Visa Standard credit card is the ideal choice. Visa Standard credit cards offer you the flexibility to make purchases, pay bills, or get cash worldwide. Plus you get the security that comes with every Visa credit card. Visa Standard credit cards are accepted at millions of locations, so you can use them for almost everything you’d want, including: • Essentials like groceries and gas • Online books, music, and movies • Dining and entertainment • Travel reservations • Bill payments

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Credit Card

2.Rewards Credit Cards

Ready to be rewarded for using your Visa credit card? With Visa Rewards credit cards, you enjoy all the benefits of Visa Standard cards, plus you earn points for the purchases you make. Choose among cards that reward you with: • Airline miles and hotel stays

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Credit Card • Gift cards and brand-name merchandise • Cash back • With Visa Rewards credit cards, you earn valuable rewards for using your card. Select from cards, including the popular gold and platinum versions, issued by the financial institution of your choosing.

Every Visa Rewards credit card provides the convenience, security, and worldwide acceptance you expect from Visa. All you need to do is choose the card with the rewards you want: • Airline award travel • Hotel points for complimentary nights and upgrades • Cash back • Gift cards and brand-name merchandise • Support for your favorite organization, school, or charity

2. Premium Rewards Cards

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Credit Card

Looking for a rewards card that connects you with unique possibilities? Select your card from dozens in the Visa Signature line. You'll enjoy extraordinary benefits in addition to the points you earn for purchases. All Visa Signature cards offer: • Complimentary concierge services • Premier sports and entertainment offers • Access to Zagat Survey restaurant reviews

CONCLUSION

Credit Cards have come to be know as popular payment tools & consumer are increasingly using them. India is already having 3 million credit card holders. The figures are populating that member 900 million and gross by 1 million people every month. Thus India can be a good potential market for credit cared companies.

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Credit Card One of the greatest impediments of a growth in cards services in India is the poor infrastructure most acceptance outlets are located in the large cities and penetration into the interiors of the country is low. If this is improved India can also become one of those countries with I major credit card holders. The government of India has decided to slap a 5% service tax. On credit cards. This decision may put on breaks to the issues of credit cares, which is already low. All those factors should be considered by banks and the benefits and rates, fees etc. should be framed accordingly. People while opting for credit cards now considered the features or benefits service provided by the bank.

From the above study I have to come to a conclusion that central bank is offering the maximum benefits to its customs. The bank should look open the areas of improvement. The consumers are facing a major problem due to lack of facilities provide by the bank. The bank is providing benefit in terms of financial discounts. But they are lacking a infrastructure for their services they provide. I analyzed is the people while opting for a credit cared would like to a for central cared. The reason behind that is it’s large network, it’s services it’s goodwill in the market & among the consumer and the benefits they offer credit cards have a huge potential. The thing for
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Credit Card improvement is the thing for improvement is the services provided by the bank and effective marketing is necessary. The key to becomes a successful credit card user depends largely upon one’s ability to use the positive features of the credit cards and setting a manageable limit on how much one will use the card.

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Credit Card

BIBLIOGRAPHY

www.gogle.com www.wikipedia.com www.cardland.com www.centralbank.com

books referred Financial Service Management By- Dipak Abhyankar

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