INDEX

SR.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Objective of the study Executive summary Introduction of Credit Card industry in India Features of Credit Card About Credit Card Working of a Credit Card Need of a Credit Card Ways to avoid Credit Card fraud Factors before applying for a Credit Card Triggers Research Methodology Data Interpretation Standard Chartered Bank 13.1 History 13.2 Types of Banking 13.3 Their Growth 13.4 Their Strategies 13.5 Their Awards 13.6 Background of Standard Chartered Credit Cards 13.7 Top Standard Chartered Bank Credit Cards 14. 15. 16. Conclusion Limitations Questionnaire on Credit Cards 39-40 40-41 42-44 44 45-52 52-53 54-64 65 66-67 68-70 DESCRIPTION PAGE NO. 1 2 3-5 6-7 8-9 10-12 13-16 17-19 19-26 27-29 30 31-38

CREDIT CARD INDUSTRY IN INDIA

1. Objectives of the Report

To study the Credit Card Industry in India in terms of its features , characteristics , factors affecting the market and trends visible in the market in the near future .

Recommendations to enter the market.

Portrayal of an unbiased view of the industry for Potential Issuers.

Strategies to enable a new entrant in the market, to capitalize the opportunity prevailing in the market, establish itself and gain a market share.

2. Executive Summary

The Indian credit card market is red hot at the moment. With the market predicted to grow at 25% until 2012, and just 25 million adults having credit cards (out of a billion population) every single bank on the planet wants a piece of the pie. The consumers in India enjoy a huge number of choices of cards. Sides, the banks and the consumers see a lot of problem between each other. India does not yet have a unique nationalized ID like social security number in US, or Tax File Number in Australia for all of their citizens. The problem for the banks with this is that there is a huge risk to give out these credit cards that can never be traced if the holder changes his or her address. The consumer on the other hand complains about exorbitant hidden fees, fines and non-existent customer service. There are still not a lot of regulations for the credit card industry. Any one on the road is given a credit card (even by non-bank employees who work as sale sub-vendors to banks) without any proper checks or verification .Well but India is one market that any bank cannot ignore, so as time goes by proper regulations will be put in place to get things in order. A credit card is a small piece of rectangular plastic which is as broad as a sheet of paper, though it cannot be folded. Initially credit cards were metal tokens in the shape of coins, then they changed to metal plates to celluloid then to fiber and now plastic with perhaps a photo of the holder and a magnetic strip on the reverse containing security information such as a personal identification number enabling the card to be used at money dispensing machines (ATM's) and merchant establishments.

Credit is the system of buying some produce or service without having to pay for it at the time of the transaction. The payment is made at a predetermined later date with the addition of a fee to the billed amount. This is like loaning someone money to buy something without actually giving them the cash but instead giving them the product they want to buy. So, the system of credit is not new to humanity, In fact, it is as old as civilization itself or perhaps even older. The entrepreneurs of the inhuman kind have been proclaimed responsible for identifying human needs as a rollicking business, and so they invented the credit card system.

3. Introduction of Credit Card industry in India

Introduction In India, the number of valid credit cards in circulation is more than 275 lakh, the number of transactions is of the order of 2282 lakh and the amount of transactions Rs. 57,958 crore in the year 2010-11. Over the past 5 years, there has been a substantial increase in credit card transactions. The debit cards have had a slow start and their growth only took off in the last one year. On the other hand, the credit cards grew faster since inception with the growth turning even sharper in the latest year.

Card Business in India As per current trends, the annual rate of increase in the number of credit cards and its number of transactions is 16% and 25% respectively. Even the amount of transactions increased at a nominal rate of 28% per annum. See Appendix A for card payments data. Before we introduce the issue under study, it will be interesting to know the parties to the credit card system, the flow of funds and levy of fee charges. The system consists of a customer who holds a credit card from his issuing bank (called issuer), a merchant who has been given the facility of accepting credit cards by his acquiring bank (also called acquirer) and MasterCard/VISA, etc., whose networks are being used. In this system, first a merchant who decides to accept credit or debit cards in exchange for goods or services establishes a merchant account by forming a relationship with an acquiring bank. This relationship enables the merchant to receive sale proceeds from credit card purchases through credits in his account. However, while receiving such credits, the acquirer applies a Merchant Discount Rate (MDR), which is paid by the merchant to the acquirer in consideration for card acceptance services. A MDR is the percentage of sales that a merchant pays to the acquiring bank to process credit card transactions. This rate generally varies from 1% to 3%. Thus, considering the average MDR to be 2%, the revenue generated in the card business, through MDR only, is of the order of Rs. 1160 crore. On 3the other hand, the cardholder pays charges in form of annual fee, finance charges, late payment charges, etc. to his card issuing bank. The risk of default by credit cardholders is borne by the issuing bank. The Interchange fee on a purchase transaction flows from the merchant acquiring bank to the

card issuing bank. The settlement and credit transactions between the issuer and the acquirer are done using the network of MasterCard/VISA, who gets a share of the fee in exchange. In India, though competition guides acquirer-merchant pricing policies, it is generally understood that Interchange fees is one component of the MDR established by acquirers. The implementation of proper Interchange rates is necessary and also very crucial for maintaining a strong and vibrant credit card payments network. The other major component of the MDR is the fee imposed by the acquirer which is retained by the acquirer to meet its own expenses. It is quite common to see a transaction at a merchant establishment involving a bank which is both the acquirer and the issuer. In such a situation it may be possible to reduce the Interchange fee since the payment network is substantially reduced. However, such reduced Interchange fee is not generally passed on to the merchants. The banks and MasterCard/VISA generate revenue and make profit in the credit card system by charging Interchange fees. In the western countries big merchants have already realized this and are in union in their demand for reduction in Interchange fees.

Origin of credit card The credit card had its beginning in an embarrassing incident that took place in the early 1950s in America. The story goes that Mr.Mc Namara; a New York businessman took his friends out to dinner .At the end of meal he discovered that he had forgotten his wallet at home, the proprietor was kind enough to allow him a later settlement of bill. As McNamara stepped out of the restaurant hehad the brainwave for the introduction of credit cards - system of availing instant credit upon confirming the identity of cardholder. Thus was born the Diners Club Cards, the pioneer of todaysmulti billion-dollar plastic money business .Diners Club adopted a promising approach by recruiting various hotels and restaurants to act as member establishments for accepting the cards. Not only did these establishments pay a commission on members purchases but the members also paid an annual subscription fee. Diners Club vetted its members for credit.While issuing the cards may seem to be easy, the challenge for the banks lies in being able to manage their portfolios by keeping the delinquency levels at the lowest. Huge investments in systems infrastructure and are therefore , a necessity. The increase is being attributed to new ideas such as roundthe-clock functioning of card issuing banks and pulling out all stops even at a loss, to grab a sizeable share of the expanding pie. Not to be left behind in this race, even the big brother, the State Bank of India in association with GE Capital entered the card business .The spurt in the card business has gathered momentum during the past couple of years. For instance, the Hong

Kong & Shanghai Banking Corporation (HSBC), was in the credit cards business since seven years, but from 50,000 card holders in 1997, it has about three lakh card holders now .Indias fastest growing credit card company - SBI Cards 2.5 lakh credit cards25 cities16 months. The joint venture between Indias largest bank State Bank of India and one of the worlds leading financial services companies GE Capital, SBI Cards & Payment Services (SBI Cards) has issued 2.5 lakh credit cards across 25 cities (the largest distribution network in the payment card industry) within 16 months. Thereby achieving the target in the fastest period seen in Indias payment card industry .SBI Cards & Payments Services attributed this success to SBIs enormous brand equity, and unparalleled retail branch network coupled with GE Capitals payment card process and technology expertise. He also highlighted Speed, Simplicity and Service as the key drivers of growth for the SBI Card. Speed Unique and exclusive 14-day average turnaround time, coupled with availability of the SBI Card in 25 cities in just 16 months Simplicity Simple application process with minimum documentation. Service 24 hours a day/7 days a week local call access to the SBI Card Help line across 25 cities. As a result of the focus on the Speed, Simplicity and Service growth platform, SBI Cards today offers the largest distribution and widest cash advance network for Indias middleclass customers. SBI Cardholders can access cash for emergency purposes from over 158 SBI branches across 68 locations in India. While issuing the cards may seem to be easy, the challenge for the banks lies in being able to manage their portfolios by keeping the delinquency levels at the lowest. Huge investments in systems and infrastructure are, therefore, a necessity. The increase is being attributed to new ideas such as round-the-clock functioning of card issuing banks and pulling out all stops even at a loss, to grab a sizeable share of the expanding pie. Not to be left behind in this race, even the big brother, the State Bank of India in association with GE Capital entered the card business .The spurt in the card business has gathered momentum during thepast couple of years.

4.Features of Credit Card

Do you know anyone who doesn't have a mailbox overflowing with credit card offers? Open any of them up and you'll find in large print just what makes this card perfect for you. At first glance, this all looks good on paper, but it's the small print that you don't pay attention to that will come back and bite you in the end. All credit cards offer a variety of features. Knowing and understanding these features will help you to decide which card is right for you.

Fees Most credit cards charge fees for various things, and it is important to know what these fees are and how to avoid them.

The annual fee Some credit card companies charge you an annual fee just for using their card. Because of stiff competition, you can often negotiate this fee away if you call and speak to a customer service representative.

Cash Advance Fee Most credit card companies will charge you a fee for cash advances. These fees can vary but are usually somewhat hefty. Not only will they charge you a one-time fee, but the interest rate for this money will be at a considerably higher rate. Plus, unlike a regular purchase, where interest begins accruing after some grace period passes, cash advances accrue interest charges from day one.

Many card companies are competing for your business and are now offering an introductory cash advance and balance transfer rates for a specific amount of time. This lower rate can be applied to any balances you may wish to transfer from another card. Although it sounds good, some companies will charge you a fee for the transfer. Know what the fee is before you transfer any balances.

Miscellaneous Fees Things like late-payment fees, over-the-credit-limit fees, set-up fees, and return-item fees are all quite common these days and can represent a serious amount of money out of your pocket if you get whacked for any of these fees.

Incentives Since there are so many credit card companies, competition is stiff. Adding incentives to their offers is one of the more popular ways to tip the scales in their favor. Incentives like rebates on purchases, frequent flyer miles on certain airlines, and extended warranties on purchases are just a few of the bonuses that card companies will now offer. For those of you who collect and use your frequent flyer miles, they also have added incentives like travel insurance and car rental insurance for your convenience. Of course, they are hoping that with all this traveling, you are using their card to foot at least some of the bill.

Rewards Many card companies are looking to keep your business and are therefore making it worth your while to use their card. Just simply by using their card you can accumulate points that will in turn earn you rewards. What kind of reward depends solely on the amount of points you accumulate. Since you can't accumulate these points without charging things on your card, this is a classic case of 'you have to spend money to save money.

5.About Credit Card

What is Credit Card?

The plastic credit card with a magnetic strip many people carry in their wallets or purses is the end result of a complex banking process. Holders of a valid card have the authorization to purchase goods and services up to a predetermined amount, called a A credit card is a safe and convenient way to pay for purchases or get a cash advance. Some credit cards let you earn points for your purchases which you can redeem for a variety of rewards and flights. We offer a range of reward credit cards. The vendor receives essential information from the cardholder, the bank issuing the card actually reimburses the vendor, and eventually the cardholder repays the bank through regular monthly payments. If the entire balance is not paid in full, the issuer can legally charge interest fees on the unpaid portion. Individual banking institutions have their own policies when it comes to credit card applications. Customers may seek either a secured or unsecured card, depending on their individual repayment histories. An unsecured credit card, on the other hand, is generally issued to those who have a good credit history and have demonstrated an ability to repay the accrued debt on time. Creditlimits are determined on an individual basis, and may be raised or lowered based on performance. An unsecured card is essentially a pre-approved loan, with interest rates higher than a similar personal bank loan.

The main benefit of any credit card is instant access to more cash than a person may have on hand. A recent college graduate, for example, may have to purchase a business suit for employment purposes. Earning the $200+ USD needed for an average suit could take weeks, and he or she needs the suit in order to earn the income. Putting the suit on a credit card would be the ideal solution; the borrower could repay the balance with his or her first pay check and few interest charges would accrue. Credit cards often become problematic when the holder accrues more debt than a regular monthly payment can cover. The issuing bank does allow users to carry over balances every month, which is also called revolving credit, but significant interest rates may also accrue on those balances. Missing a scheduled payment can also prompt the bank to raise interest rates on a delinquent account. If a cardholder can only afford to pay the minimal amount due every month, he or she will not be reducing the actual debt incurred. The minimal payments may only apply to the accrued interest. This is a financial spiral many cardholders may experience if they don't use proper spending restraint. A credit card does give the holder an immediate credibility for services such as hotel reservations, car rentals and airline ticket reservations. Those without credit cards often have to guarantee their reservations with cash deposits or several forms of identification. Many credit card plans also include insurance coverage for theft or fraud. If a card is reported stolen and then used illegally, the cardholder would not be held responsible for unauthorized charges. A cardholder can authorize other people to use the card for purchases or services, however. Ultimately, the primary cardholder is responsible for all charges placed on his or her account. Having a credit card is not a requirement for successful living, but even those who only pay for goods or services with available cash often find it to be a convenient form of identification and instant credibility. In order to avoid excessive debt, the holder must decide if the goods or services are worth the added expenses.

6. How Credit Cards Work

A credit card is a safer and more convenient alternative to cash. However, the simple act of paying for products and services with a credit card is supported by an elaborate behind-thescenes system.

When you apply for a credit card, your application is carefully screened by the bank you apply to. A credit limit is worked out for you, based on your financial capability, educational qualifications, age etc. The bank that issues you the credit card is called the issuing bank.

At the heart of the credit card business is a mutually beneficial arrangement between the issuing bank and a host of businesses called merchant establishments through international networks such as Visa and MasterCard. Merchant establishments could be hotels, shops, travel agents or any place where transactions are made. Banks that enroll merchant establishments are called acquiring banks.

Your credit card is valid in any merchant establishment that accepts your network (MasterCard, Visa, et al) even if it has been enrolled by an issuing bank other than yours. Most Indian card issuing banks are part of either the MasterCard or Visa network, or both. There are other credit card networks like American Express and Diners Club too.

This network is at the heart of any credit card activity. When you use a card at an establishment to purchase a product or service, your card is swiped on a swipe-machine. The swipe machine is connected to a central computer belonging to the network, which in turn is connected to all issuing banks. The system verifies with your issuing bank whether you have sufficient credit to cover the purchase in a few seconds and approves or rejects the transaction. As soon as the approval comes through, you are asked to sign the charge slip. The merchant then verifies your signature with the one at the back of the card.

The charge slip is then forwarded to the acquiring bank, which then settles the transaction with the merchant. The issuing bank also proceeds to bill you for payment as per the cardholder agreement. The acquiring bank will settle the transaction with your issuing bank through the network.

From the merchant establishment's point of view too, the credit card is a safe and efficient payment mode and brings more business. The merchant establishment pays a fee to the bank that enrolled it for the service. From the bank's point of view, credit cards benefit in two ways: Banks make money through fees from merchant establishments and the higher-thannormal interest rate paid by card holders for the balance on their cards.

You can save on the interest cost if you are prompt in paying the balance by the due date. Credit card users get a free period of credit before they reimburse the credit card issuing bank. This may vary from 15 days to 40 days depending on the issuing banks. When you use a credit card, you have the option to pay just a part of the total amount spent and carry forward the balance. In such cases, you will have to pay interest on all your purchases without any free credit period.

Today, credit cards have found widespread usage due to the conveniences they offer. Unlike the olden days, you do not have to carry large sums of money when you go shopping. All you need to do is take your card with you while shopping, select whatever you want to buy, hand over your card to the cashier to make the payment and walk out with your purchase. So simple, isn't it? Besides, the card issuing banks offer many types of benefits like cash backs, reward points, interest free credit and discount offers on purchases made at select stores. All this makes it attractive to use a credit card in lieu of cash for your purchases. If you are wondering, "What happens after I hand over my card to the cashier?" When you hand over your card to the cashier to pay for your purchases he takes it and swipes it in the merchant's point of sale (POS) system. This system is connected to the merchant's bank via a communication link. This POS system helps in verifying your data by using an electronic verification system. The details verified include the validity of your card and the availability of sufficient balance on your card to pay for the purchases. This data is available on the magnetic strip, present at the back of the card. Once your details are transmitted to the merchant's bank, they are sent to your bank which then authorises the payment if all the details are in order. This authorisation is then sent to the merchant's bank, which then blocks the amount from your credit limit so as to reimburse it to the merchant later on. The authorisation generates an approval code and is transmitted to the merchant. This code

has to be keyed in by the cashier, after which two copies of charge slip is generated. This charge slip is your agreement to pay your issuing bank the amount of purchase. You then sign one copy of the charge slip and take the other one with you, along with your purchase. Just like you, there are many others who use credit cards for their purchases. They also generate their own charge slips. All these charge slips are stored in batches and submitted by the merchant to his bank, at the end of the working day. But remember the nature of relationship of the merchant with his bank is far different from your relation with your bank. It is more of a contract, called as merchant account and is actually a line of credit than a regular account. As per this contract, the bank agrees to undertake collection of payments on behalf of the merchant from his customers' banks. These payments are credited to the merchant's bank accounts after deducting the fees for all the services involved. When the merchant deposits these batches in his bank, they are sent by the merchant's bank for clearing and settlement through the credit card association. This association charges your purchase amount to your bank and pays the amount to the merchant's bank. The merchant's bank then reimburses this amount to the merchant. Your bank now charges your purchase amount to your credit card account. On the specific date, your bank will generate an account statement, listing all the credit and debit transactions in your account. If the debits are higher than credits, you have to pay the difference to your bank. You will also be given a due date, which is the last date by which you have to repay your bank. The failure to pay off this amount by due date will mean paying late fees as well as interest charges to the bank. These fees and charges can be very high, so be very careful. Credit card is a powerful credit tool to help you tide over short term financial requirements. However, they must be used judiciously, as any misuse of the card can attract stiff charges and make you fall into the debt trap, besides destroying your credit rating.

So the watch word is, 'BE CAREFUL' while using the credit card.

7. Why we need a Credit Card? A credit card is a safe and convenient way to pay for purchases or get a cash advance. Access to credit A credit card can give you access to funds to pay for things that are outside of your immediate budget. It is important to realise that credit through a credit card is a loan and needs to be paid back. Useful when travelling overseas Credit cards are commonly accepted around the world so they are a convenient way to pay for purchases when travelling overseas. Helps avoid everyday transaction fees If you are charged fees for each transaction on your everyday transaction account, you can use your credit card for purchases instead. Then you can pay off the entire outstanding balance shown on your statement with a single transaction to reduce the transaction fees. Earn rewards for everyday spending Some credit cards let you earn points for your purchases which you can redeem for a variety of rewards and flights. Types of Credit Cards Credit cards have come to the rescue of people with hot pockets. They, nowadays, put their trust in the innovation of credit cards where they need not carry large sums of money with them; instead simply carry a credit card which is linked up with their bank account enabling them to make payments without batting an eye. It is a trend, now, to make payments at a hotel, restaurant or a departmental store/ mall using a credit card. Because of the fear of one's bank account details being swiped and stolen, more and more credit cards are made secure so that even if a credit card is stolen, the money in one's bank account stays safe.

Credit cards now are of various types with different fees, interest rates and rewarding programs. When applying for a credit card, it is important to learn of their diverse types to know the one best suited to their lifestyle and financial status. Different types of credit cards available by banks and other companies/organizations are briefly described below. Standard Credit Card: This is the most commonly used. One is allowed to use money up to a certain limit. The account holder has to top up the amount once the level of the balance goes down. An outstanding balance gets a penalty charge. Premium Credit Card: This has a much higher bank account and fees. Incentives are offered in this over and above that in a standard card. Credit card holders are offered travel incentives, reward points, cask back and other rewards on the use of this card. This is also called the Reward Credit Card. Some examples are: airlines frequent flier credit card, cash back credit card, automobile manufacturers' rewards credit card. Platinum and Gold, MasterCard and Visa card fall into this category. Secured Credit Card: People without credit history or with tarnished credit can avail this card. A security deposit is required amounting to the same as the credit limit. Revolving balance is required according to the 'buying and selling' done. Limited Purpose Credit Card: There is limitation to its use and is to be used only for particular applications. This is used for establishing small credits such as gas credits and credit at departmental stores. Minimal charges are levied. Charge Credit Card: This requires the card holder to make full payment of the balance every month and therefore there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income level and high credit score. Penalty is incurred if full payment of the balance is not done in time. Specialty Credit Card: is used for business purposes enabling businessmen to keep their businesses transactions separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an accredited 4-year college/university course can avail this benefit.

Prepaid Credit Card: Here, money is loaded by the card holder on to the card. It is like a debit card except that it is not tied up with a bank account. There are 40 gold credit cards available in India: ABN AMRO Smart Gold Credit Card American Express Gold Charge Card American Express Gold Credit Card American Express HPCL Credit Card Axis Bank Gold Credit Card Axis Bank Gold Plus Credit Card Axis Bank Secured Credit Card Barclays Bank Gold Credit Card BOBACRD Gold MasterCard Credit Card BOBACRD Gold Visa Credit Card Cancard Visa International Gold Credit Card Citibank Cash Bank Credit Card Citibank Gold Credit Card Deutsche Bank Landmark Gold Credit Card Deutsche Bank Smart Gold Credit Card HDFC Bank Gold Business Credit Card HDFC Bank Gold Credit Card HDFC Womans Gold Credit Card

HSBC Gold Credit Card ICICI Bank Airtel Gold Credit Card ICICI Bank Big Bazaar Gold Credit Card ICICI Bank Gold American Express A Credit Card ICICI Bank HPCL Gold Credit Card ICICI Bank Orchid An Ecotel Credit Card ICICI Bank Solid Gold (MasterCard) Credit Card ICICI Bank Solid Gold (Visa) Credit Card ICICI Bank Toyota Credit Card ICICI Bank Travel Smart Credit Card IndianOil Citibank Gold Credit Card Jet Airways Citibank Gold Credit Card Jet Airways CitiBusiness Credit Card Kotak Mahindra Fortune Gold Credit Card Kotak Mahindra Trump Gold Credit Card NEXTGEN BOBCARD Gold Credit Card Reliance Gold Credit Card SBI Gold and More Credit Card SBI UBI (United Bank of India) Gold Credit Card Standard Chartered Gold Credit Card

8. Ways To Avoid Credit Card Fraud 1. Report fraud as soon as you suspect it Any case of fraud must be dealt with immediately. You need to call your card provider or bank and file an immediate report using a 24-hour number that you have been given. Your card will be cancelled immediately and then the company will help you deal with any further matters.

2. Shop safely When you are out and about shopping there are ways to avoid credit card fraud that you may not have thought of. When the sales assistant gives you back your card take a look at it first to make sure that it is yours before putting it in your pocket or wallet. Also, you should always make sure that nobody sees your pin number whenever you use your card. Try to shield it with your hands. These thieves can be very tricky and use cameras or assistants to watch what number you are keying in for your pin. 3. Check Statements It's surprising how many people don't check their monthly credit card statements. Yet keeping an eye on the amounts charged to your account can be a quick way to determine whether your card is being used by a fraudster or not.

4. Eyes On Your Card Never allow your credit card out of your sight at any time. It might be trendy to slip your credit card into the bill-folder at a restaurant to be charged back at the counter, but this could be an excellent opportunity for a fraudster to take advantage of you. This also goes for anywhere you can't see your credit card being processed in front of you.

5. Don't Be Fooled by Email Phishing Phishing' is the term used to describe a fraudulent email requesting that you click on a link. Youve then encouraged to enter your personal details into a website. Your credit card issuer will never ask you to verify your details or to click on a link to re-enter your details. Millions of people every year get scammed this way.

6. Keep your information private Your bank or credit card issuers should never call or e-mail you for your account information. If you receive such a call or e-mail, call your bank immediately and let them know about it.

7. Secure Online Shopping Sites Even though most people fear shopping online, it can actually be a little safer than shopping in person but only if you check that you're using a secure website. A secure site used encryption to keep your information safe.

8. Safe Statement Disposal Buy a cheap shredder from a discount department store and be sure to shred your old credit card statements and bank statements. There really are people willing to go through garbage to find personal financial details like this. 9. Notify Your Credit Card Issuer Always notify your credit card issuer immediately of a change of address. Be sure your statements and correspondence are being sent to the correct address as quickly as possible.

10. No Sharing It's never a good idea to share your credit card information with anyone for any reason. There are plenty of people every year who are scammed by family members or friends using their credit card details fraudulently. Even if your intentions are good, make sure you enter your own details and take responsibility for your own card

9. Factors before applying for a Credit Card 6 factors to look at before you apply for Credit Card In India Lets see those 6 parameters which you should look at before you apply for a credit card in India. At the end of this article, we will see the detailed results of the credit card survey and find out how different credit cards performed on each parameters, so that if some particular parameter is more important for you, you can just pick a card based on that parameter. 1. Interest rate charged on credit cards The first parameter to look at while choosing a credit card can be the interest rate charged by the credit card company. It can range from 1.99% on cheapest credit card to as high as 3.5% per month on the most expensive credit card. For most of the people who pay their bills on time, this parameter will not matter much, but you never know when you might get into a debt trap kind of situation where you start using your credit card to the maximum limit and pay the interest per month, at that point of time this factor will really matter. Note that interest rate charged is mentioned on per month basis, but a small difference of 1% can be very big, considering it on yearly basis. For example a 1.99% monthly interest rate actually means 27% Yearly and 3.5% monthly means 51% yearly CAGR. 51% yearly CAGR means your Rs.1 lac of credit card debt can actually increase to 7.9 lacs in just 5 years if you dont do something about it and obviously you will run around to improve your cibil score later .

2. Annual Fees & Other charges A lot of credit cards charge a yearly fees and renewal fees (at the time of renewal). Now a lot of people hold a Free credit card for lifetime, but thats just bunch of people who were given the credit card on a telemarketing call, mostly because they are working in some big company and chances are higher that their usage of credit card will be much higher than an average customer, hence the free credit card. But, lot of people apply for the credit card themselves and for them, there are yearly charges (annual fees) and other kind of charges which is applicable to everyone. For example , the penalty charges if you dont pay your dues no due date. There are tons of customers who do not pay their dues on last time and just pay the minimum payment. If this happens a lot of with you , then there is a great chance that you also live with the myth of minimum payments on credit cards. So apart from annual charges, there can be charges like Charges when you pay your credit card bill by cash in any bank branch If you make a demand draft from your credit card If you request for a duplicate statement And many other credit card charges .The list is not a small one Note that if your credit card is FREE as of now, it might carry annual charges when it expires and you apply for renewal and credit card company says Sir , we gave it 100% free only till the card is valid, now its renewed ! 3. Rewards and Offers on Credit Card There are a lot of advantages of using a credit card in form of benefits and reward points. For example You get PAYBACK points which you can use to redeem at various places like www.bookmyshow.com, and book movie tickets by redeeming those points. You also get cash back benefits if you use the card at selected HPCL petrol pumps and you dont pay the fuel surcharge too . There are many other kind of benefits which many credit cards in India offer and those can be different from one credit card to another. This is one very important factor before you choose a credit card because a big number of people just take credit card for these benefits and even if you are not looking for these, you might want it in future at some point of time.

4. Customer Service and Transparency Once I called my credit card company (which is ICICI Credit card) because I wanted to know, if there will be any annual charges on my credit card as the expiry date is over and I wanted to renew the credit card. They gave me a very clear and satisfactory step by step answer which made me feel Great . There was no renewal charges and no annual charges even after renewal. So I was happy. Now it was not the FREE thing here which made me happy alone, It was the way customer care talked to me and treated me like a human. While there are instances when I was not that happy, but overall on an average I would still rate the customer service of my ICICI credit card as good. Well, thats my experience only and others can have bad or worse experience with credit card company. Before you apply for a credit card, you need to look at this very critical aspect of customer service and how transparent are they overall. 5. Convenience to pay the bills Something which you will deal each month is the payment of your credit card bill. Now almost all the credit card companies allow to pay by net-banking, cheque, cash and other ways. But still some banks can be really torturing and not that supportive. It can be cumbersome at times. There has been instances when people paid by cheque before time and it was not processed on time and the person had to suffer because of that and had to run around to get back those charges reversed. 6. How easy was it to apply for credit card Have you gone through frustrating time applying for credit card, really had to run around to get a credit card even when you were totally eligible to get one. While this criteria is not that big, as its a one time event still you can consider it before you apply for one. I recently had a hard time opening a saving account for my brother with ICICI bank because they had no way to accommodate people living on rent with friends, however Kotak bank did it for me, at that point of time, the ease of opening the account was really a big thing for me. In the same way ease of applying for a credit card can be one important factor at times.

Best & Worst Credit Card in India as per Survey Below are the results of the survey which we conducted on credit cards. Have a look at it.

If you look at the above chart you will see that the best credit card in India turns out to be Citibank Credit Card and the second best is HDFC Bank Credit card overall. However this does not mean that other credit cards are not good in all the parameters. ICICI Bank credit card is very close to all the other cards in several parameters. While the SBI Bank credit card and HDFC Bank credit card top the list when it comes to interest rates charged (means they have lower interest rates compared to others), but HSBC Bank credit card comes last. HBSC Bank credit card has not done good in any parameter as per the survey and has lowest ranking in all of them.

Average Credit Card bill for last 6 months 86% people are paying less than Rs 20,000 per month as there credit card bills, thats last 6 months average. Where as only 2% people had more than Rs 50,000 bill per month. I suspect that these people must be using their credit card for various mandatory expenses which is required anyways. Lots of reward points and benefits to them.

Indian credit card industry to witness robust growth

The robust growth in the Indian economy is also witnessed in the credit card industry. Higher disposable income by relatively younger workforce in Mid 20s has made India a perfect market for credit card companies. Here are some statistics and projections of the Indian credit card industry.

Visa, which accounts for 70% of the total card industry is the market leader in India. Visa expects total cards in circulation (both debit and credit) to double to 100 million by 2010 from around 45 million now.

Credit Card purchase volumes in the country are likely to triple to $21 billion by 2010. India is currently the fastest growing Mobile Market in the world and is also among the fastest growing credit card markets in the world.

India has a total 45 million cards under circulation (13 million credit and 32 million debit) and a 40% year-on-year growth.

68% of payment cards in India are debit cards as against 2% in 1998 ICICI bank is Indias largest Credit Card issuer. With the entry of Wal-Mart in India, we will see India becoming the fastest growing Retail market in the world within the next few years.

How credit card companies are making a comeback? After the initial boom period of 2004 to 2006, the Indian credit card industry faced one of its toughest years in 2007-09. However, it seems like the tide is turning with the sector witnessing a dramatic drop in credit card defaults in the last one year. After the initial boom period of 2004 to 2006, the Indian credit card industry had its bubble burst in 2007-09. However, it seems like the tide is turning with the sector witnessing a dramatic drop in credit card defaults in the last one year. According to data compiled by the Credit Information Bureau of India (Cibil), financial health of average individual borrower has risen. The data shows that the proportion of borrowers with a credit score of more than 800 has gone up from around 23% in 2008 to over 62% in 2011. Credit score is a ranking drawn up by Cibil, the largest repository of borrower information in the country, which ranges from 300 to 900, with 900 being most creditworthy. In the last one year, the percentage of cardholders who have not met their payment obligations for more than 90 days has dropped from 2.82% in the fourth quarter of 2010 to 1.62% in Q4 2011. The significance of 90 days is that the Reserve Bank of India requires banks to classify loans that are not repaid in 90 days as non-performing assets. This is a marked turnaround for a business which has been hit by defaults since the 2008 global financial crisis and many banks have got out of the personal loan space completely. Besides a fall in defaults, cardholders are using their cards for a 30% higher value.

LOWER DEFAULTS According to SBI Cards, the country's third largest issuer of credit cards, increased awareness and focus on profitable growth has paid rich dividends. "Credit card issuers are relying a lot on bureau data, which has improved dramatically. This has reduced the scope for delinquencies significantly. The irrational exuberance that we saw in 2008-09 no longer exists. Banks are adopting a more calibrated approach in growing their card portfolios," Kadambi Narahari, chief executive officer of SBI Cards told moneycontrol.com. Also, SBI Cards is careful in enrolling new customers and selling to existing accountholders. "We charge an annual fee ranging from Rs 499 to Rs 2,999 to our customers on all our cards. This helps us weed out serious users from the non-serious ones," Narahari says. The fact of the matter is people have realised the importance of keeping a good credit score, believes Sanjeev Jain, CEO, GE Capital Business Processes Management Services -- SBI Cards joint venture partner. "We have had customers asking us to clean their credit history of an eight-10 year old default as they were unable to avail a home or a car loan because of it," Jain says. However, having only "good" customer means company margins come under pressure, where the real money is made on penalties.

CUSTOMIZED PRODUCTS Besides keeping an eye on who they are dealing with, card companies have also come out with customer-specific products. "For example, if a customer uses his or her card more for eating out, we give them offers related to dining out. If a customer uses the card more to book travel tickets, we offer them cards designed for frequent flyers," Narahari says. Another hit has been the corporate cards. "Companies have found corporate cards a great way to manage cash," Jain says adding, it also cuts down on reckless spending by its executives. Secured cards have also started to gain traction. Basically, what they do is offer customers, who otherwise are not eligible, credit cards based on their fixed deposits with State Bank of India.

"We offer up to 80% of the amount of the fixed deposit to the customers. This strategy removes any scope of delinquency in these accounts. We are also offering cards without a security in areas that we call project towns. We are issuing these cards to corporate employees working in small towns and cities provided the company has very good relationship with us," Narahari explains. Secured cards have formed 10% of SBI cards total portfolio.

'REAL GROWTH IN TIER II & III CITIES' Credit cards are meant for the urban population. That was the popular belief among most industry watchers and market analyst. However, that is not the case now. Products such as secured cards and aggregation of demand have led to a spike in card holders in tier II & tier III cities. Also, the thriving retail scene has also helped the demand in such cities. "The ability to source clients, service them and recover the money holds back most issuers from offering credit cards in deeper geographies. We have expanded our portfolio in tier II and III centres in the past 12-18 months. In many of these locations we are offering credit cards against security. So, if you have a fixed deposit with SBI we will offer you a credit card," Narahari says. In fact, the SBI Card chief expects growth in these small towns to outpace thier urban counterparts. "We are also targeting people who have just joined work. We call them the emerging segment. These are people who have the potential to become good customers in future. Hence, we want to partner them in their early life," he says. SBI Cards, which has a base of 2.2 million cards, hopes to add 1 million new card holders by 2014-15. It is also launching a new high end signature card for HNI customers shortly.

10. TRIGGERS A big trigger for SBI Cards has been the use of the short messaging service or SMS. "Every time our customer makes use of our card, he immediately gets an SMS on the transaction no matter how small it is. This gives a sense of security to the user and helps him track of his account. Mobile commerce has been a big growth driver for us," Narahari says. Security mechanism on the cards has also been upgraded so as to prevent unauthorized transactions. The Reserve Bank of India has mandated card companies to migrate to the high security EMV platform by 2014. This is likely to drastically bring down credit card frauds. The recent White Paper on black money tabled in the Parliament by the finance minister suggested tax incentives for encouraging use of debit and credit cards as these leave audit trails. Credit Card Market Heading for Magnificent Growth in India According to our new research report, Indian Payment Card Market Forecast to 2012, the number of payment cards, categorized as credit and debit cards, is increasing rapidly in India. Phenomenal growth in the number of credit and debit cards in India, over the past few years is an evidence of the aforementioned statement. Apart from increasing consumerism, intensifying competition among card issuers and an expanding financial infrastructure will drive the future growth of the concerned market. The research found that segments, especially credit card market have been showing tremendous growth performance and emerged as a potential investment area for players. With increasing number of credit card holders and rising consumer confidence regarding credit card purchase, the transaction value of credit cards in India is forecasted to increase at a CAGR of around 8% during FY 2011-2013. This growth will be largely attributed to the improving credit card payment infrastructure in the country, with most of the merchants accepting credit card payments at POS terminals. Banks have also tightened their rules of issuing credit cards on account of increasing fraud cases, which have also helped in improving the credit card infrastructure in the country.

However, we observed that the Indian banks dominate the retail banking market, but the scenario is completely different in the credit card market, where foreign banks have managed to capture a sizeable market share. This is mainly due to the fact that while the Reserve Bank of India has imposed several restrictions on the foreign banks, there are no such restrictions on credit card companies. HDFC, Citibank, and Standard Chartered are some of the foreign banks having significant Indian portfolios. Indian Payment Card Market Forecast to 2012, provides an extensive research and rational analysis along with reliable statistics of the Indian payment card market. The report has thoroughly examined current market trends, industrial developments, and competitive landscape to enable clients understanding of the market structure and its progress in the coming years. Besides, the report also provides a brief overview of the key market players. Our forecast presented in the report has been carried out considering the possible postrecession impact on the industry. Further, our report has been prepared with proper insight into the current and future outlook of credit card market in India to provide enhanced knowledge about the market to our clients.

Credit card firms turn cautious, growth to be hit Growth in credit card industry in terms of acquisition of new customers is likely to be weak in the current financial year as most banks and card issuers are no longer looking at expanding their customer base in a reckless manner. Today, there are about 18 million credit card holders, down by a few thousands from what it was in 2009-10. Kadambi Narahari, CEO, SBI Cards and Payment Services Pvt Ltd joint venture between US conglomerate General Electric and the countrys largest lender, State Bank of India told HT that banks want to be careful while issuing new cards and leverage CIBILs (Credit Information Bureau of India) distribution network to ensure that the customer has a clean track record in terms of financial discipline. The expansion in credit card industry has been moderate but banks and credit card issuers are now more focused on increasing the spending on the card, Narahari said. Narahari said that the default rate, which had breached the double digit figure has now come down to a manageable level. While banks have stopped recklessly issuing cards, customers

have also become aware and they do not want to be blacklisted by CIBIL. Therefore, several hundred card holders have shown an urge to clear dues, which has brought down the default rate in the industry, he said. HDFC Bank, ICICI Bank, SBI Cards and Citibank are among the top card issuers with a combined market share of about 70% in the credit card industry.

11. Research Methodology

Kind of Population Area Sample Size Sampling Source of Date Statistical Tool

People having Credit Cards

Shivaji Park , Mahim and Fort

: 50

Convenience Sampling

Questionnaire

: Pie Charts

12. Data Interpretation

Gender

43% 57%

Males Females

Males Females

On conducting a survey it was found that 57% Females and 43% males used credit cards.

Occupation

Other 16%

Business 21%

Professional 28% Service 35%

On conducting a survey it was found that 35% people in the service industry use credit cards in comparison to 28% professional , 21% business and 16% other occupations.

Age Group of people using Credit Cards

16%

Above 60 40 to 60 years

23%

15 to 25 years
15 to 25 years 25 to 40 years

22%

25 to 40 years
39%

40 to 60 years Above 60

On conducting a survey it was found that the credit card is used mainly by the people in the age group of 25-40 years i.e.39%, 23% in 15-25 years,22% in 40-60 years and 16% by above 60 years.

Annual Income

>10,00,000 23%

<1,00,000 12%

1,00,000 to 5,00,000 28% 5,00,000 to 10,00,000 37%

On conducting a research,it was found that credit cards are pre dominantly used by people with having an annual income of 5,00,000-10,00,000 i.e. 37%.

Most Used Credit Card

17% AXIS

Bank Standard Chartered

30% Standard Chartered HSBC Bank

HDFC Bank

HDFC Bank AXIS Bank

28%

HSBC Bank

25%

After surveying the audience it was found that most people use Standard Chartered Bank i.e. 30%.

Best Credit Card services

16%

AXIS Bank

21%

Standard

HDFC Bank
29%

Standard Chartered HSBC Bank

HSBC Bank

34%

HDFC Bank AXIS Bank

On conducting a survey it was found that the best credit card services are provided by HSBC bank as voted by 34% people.

Usage of Credit Cards

8%

Other

38%

30%

E-ticketing Bill Payments

E-ticketing Online shopping Bill Payments Other

Online Shopping
25%

On conducting a survey it was found that most people used their credit cards for E-Ticketing i.e. 38% followed by 30% who use it to pay bills,25% use it for online shopping.

Type of Transaction

Credit Transaction 30%

Cash Transaction 70%

On conducting a research it was found that 70% people still prefer cash transactions over credit card transactions.

Standard Chartered Bank

13.1 History Standard Chartered Bank was formed in 1969 through the merger of two separate banks, the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. These banks had capitalised on the expansion of trade between Europe, Asia and Africa. The Chartered Bank The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. The bank opened in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. The traditional trade was in cotton from Mumbai, indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama. The bank played a major role in the development of trade with the East following the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank, together with the Ionian Bank's Cyprus Branches and established a presence in the Gulf. The Standard Bank The Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson, and started business in Port Elizabeth in the following year. The bank was prominent in financing the development of the diamond fields of Kimberley from 1867. It later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. The bank expanded in Southern, Central and Eastern Africa and had 600 offices by 1953. In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

In 1987 Standard Chartered Bank sold its stake in the Standard Bank, which now operates as a separate entity

THEYRE listed on the London, Hong Kong and Mumbai stock exchanges, and rank among the top 20 companies in the FTSE-100 by market capitalisation. 13.2 Types of Banking Consumer Banking

We offer a wide range of innovative products and services to meet Their customers needs. Wholesale Banking

We bring Their corporate clients local expertise with global insights into today's fastest growing markets.

SME Banking

We provide tailored solutions to help customers set up and grow their small and medium enterprises. Islamic Banking

We have a wide range of Shariah-compliant financial products based on Islamic values. The Private Bank

We offer a full range of customised wealth management services for high net worth clients. Online Banking

Get access and manage your finances anytime, anywhere, with your online and mobile banking.

13.3 Their growth Since 2000, weve made a number of alliances and acquisitions. These have made it possible to broaden Their locations and products in key regions and countries. 2012

Turkey - acquisition of Credit Agricole Yatirim Bankasi Turk A.S., a provider of corporate and investment banking services 2011

Singapore acquisition of GE Moneys Singaporean auto and personal loans provider Canada and Australia acquisition of Gryphon Partners, a mining and metals corporate advisory firm 2010

Africa - acquisition of Barclays African custody business China we became an investor in Agricultural Bank of China, one of the top commercial banks in China

India we launched Their first ever Indian Depository, allowing investors in India to participate in Their growth 2009

Africa acquisition of First Africa Holdings Limited Asia acquisition of Casenove Asia India we increased Their investment in UTI Securities to 74.9% 2008

Taiwan acquisition of the 'good bank' portion of Asia Trust and Investment Corporation Brazil acquisition of Lehman Brothers team in Brazil Vietnam we announced raising Their strategic stake in Vietnam's Asia Commercial Bank to 15%

South Korea acquisition of South Korea's Yeahreum Mutual Savings Bank

Global we completed the acquisition of American Express Bank, a wholly-owned subsidiary of American Express Company, with operations in 47 countries

South Korea Standard Chartered First Bank Korea Ltd acquires an 80% stake in South Korea's A Brain, a funds administration company

India acquisition of a 49% strategic stake in India's UTI Securities, a leading local broking firm. 2007

Global we completed the acquisition of Harrison Lovegrove, a leading global oil and gas M&A advisory boutique

Global we acquired Pembroke, an aircraft leasing, financing and management firm. 2006

Taiwan acquisition of Hsinchu International Bank (USD1.2bn) Pakistan acquisition of 95.37% of Union Bank (USD487m) Indonesia acquisition of a 26% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD193m). Total stake held in PermataBank by consortium today is 89%.

Africa acquisition of 25% in First Africa Group Holdings Ltd. 2005

Acquisition of a 20% stake in Fleming Family & Partners (USD78m) China acquisition of 19.99% of China Bohai Bank (USD123m) Bangladesh acquisition of Amex Bank's Bangladesh business (USD25m) Vietnam acquisition of 8.56% stake in Asia Commercial Bank (USD22m) Global acquisition of a minority stake (6%) in Travelex as part of Apax-led consortium South Korea acquisition of Korea First Bank (USD3.3bn). 2004

Global acquisition of ANZ's Project Finance business with assets Indonesia acquisition of 63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD355m)

Hong Kong acquisition of PrimeCredit 2000

Hong Kong acquisition of Chase Manhattan Card Company (USD1.32bn) Global acquisition of ANZ Grindlays (USD1.34bn).

13.4 Their strategy

We aspire to be the world's best international bank, leading the way in Asia, Africa and the Middle East. We focus on building deep and long-standing relationships with Their clients and customers and constantly look to improve the quality of Their products and services. Their success In the last nine years we have reported record income and profits. Twenty-fTheir of Their markets now deliver over US$100 million of income, fTheirteen over US$100 million in profit. Listed on the London, Hong Kong and Mumbai stock exchanges, we rank among the top 20 companies in the FTSE-100 by market capitalisation. Their focus on basic banking Their success is a result of being obsessed with the basics of banking - balancing the pursuit of growth with a disciplined management of costs and risks and keeping a firm grip on liquidity and capital. Through Their international network and expertise, we facilitate trade across markets, enable multinational clients to conduct complex business transactions and service the needs of an increasingly international consumer base.

13.5 Their Awards Every year we are recognised for Their achievements in banking and finance. Here are some of the awards we have won in the past year.

Euromoney Awards for Excellence 2011

Best Investment Bank in Africa Best Project Finance House in Africa Best Flow House in Africa Best Bank in Tanzania Best Bank in Hong Kong Best Cash management House in Asia Best Investment Bank in the Middle East Best Project Finance House in the Middle East Islamic Finance 2011

Best Project Finance House Most Improved Islamic Bank in Asia

Global Finance Global Finance Awards 2011

World's Best Foreign Exchange provider in Africa, Asia Pacific, Southeast Asia Best Bank Awards 2011

Best Bank in Africa

Best Investment Bank Awards 2011

Best Debt Bank in Asia Best Investment Bank in Singapore Best Supply Chain Finance Providers 2011

Best Supply Chain Finance Provider in Asia Stars of China 2011

Best Supply Chain Finance Provider (Foreign) Best Small Business Lending (Foreign) World's Best Derivatives Providers 2011

Best Interest Rate Derivatives Bank World Best Internet Bank Awards 2011

Best Bill Payment and Presentment in Asia Best Design for a Global Banking Website Best Consumer Internet Bank - Singapore World's Best Sub-Custodian Banks 2011

Best Sub-Custodian Bank in Asia Best Sub-Custodian Bank in Africa Worlds Best Treasury & Cash Management Providers 2011

Best Bank for Liquidity Management in Asia Best Bank for Liquidity Management in Africa

GTR Leaders in Trade 2011

Best Trade Finance Bank in South Asia (including India, Pakistan and Bangladesh) Number 2 Best Supply Chain Finance Bank Number 2 Best Trade Finance Bank in Asia Pacific

Asia Leaders in Trade 2011

Best Commodity Finance Bank in Asia-Pacific Best Trade Finance Bank in Singapore Best Trade Finance Bank in Bangladesh

PFI PFI Awards 2011

Asia Bank of the Year AsiaRisk Asia Risk Awards 2011

Interest Rate Derivatives House of the Year Corporate Rankings 2011

Number 1 overall for Derivatives in Asia Number 1 for Currency Derivatives Number 1 for Interest Rate Derivatives The Asset Country Awards 2011

Best Debt Bank in China Best Debt Bank in Singapore Best Debt Bank in Vietnam Best M & A House in India Best Debt House in India Best Bank in Pakistan Best Debt House in Pakistan

Transaction Banking Awards 2011

Best Transaction Bank Best Trade Finance Bank in India Best Structured Trade Finance Bank Best Cash Management Specialist for Payments and Receivables in Asia Best Cash Management Bank in Southeast Asia Best Cash Management Bank in the Middle East Best SME Bank in Hong Kong Triple A Awards 2011

Best SME Bank, Hong Kong Triple A Islamic Finance Awards 2011

Best Islamic Project Finance House The Asset Triple A Regional Awards 2011

Best Leveraged Finance House Best Project Finance Advisory House Best Asian Currency Bond House Best Securitisation House The Asian Banker Technology Implementation Awards 2011

Best eBanking Project in Thailand International Excellence in Retail Financial Services Awards 2011

Best Customer Relationship Management in Hong Kong Best Payments Product (Pay Any Card) Asian Private Banker Asian Private Banker Awards 2011

Best Private Bank in the Middle East

The Banker The Banker Awards 2011

Best Investment Advisory in the Middle East Bank of the Year Awards 2011

Best Bank in Afghanistan Best Bank in Tanzania Best Bank in Zambia Bank of the Year - Financial Inclusion Middle East Industry Awards 2011

Best Investment Advisory Services / Priority Banking in the UAE Emeafinance Middle East Banking Awards 2011

Best Foreign Bank - Bahrain Best Foreign Investment Bank - Bahrain Best Foreign Bank - Jordan Best Foreign Investment Bank - Jordan Best Foreign Bank - Oman Best Foreign Bank - UAE Best Foreign Investment Bank - UAE Treasury Services Awards 2011

Best cash management services in EMEA Best FX services in the Middle East Lloyd's List Asia Awards 2011

Ship Financier Award

Lloyds List Awards 2011

Ship Financer Award Trade and Forfaiting Review Trade and Forfaiting Review Awards 2011 (Readers' Poll)

Best Trade Bank in Africa - Gold Best Trade Bank in Asia-Pacific - Bronze Trade & Forfaiting Review Awards 2011

Best Trade Bank in Africa Best Trade Bank in Asia-Pacific

The Banker and Professional Wealth Management Magazine, Financial Times - Global Private Banking Awards 2011

Best Private Bank in Asia Best Private Bank in India Banking and Payments Asia Trailblazer Awards 2011

Process Excellence Award in Thailand Service Excellence Award Best in Category (Breeze) China Trade Finance Awards 2011

Best RMB Cross-Border Settlement Bank CorpComms DigiAwards 2012

Best Corporate Website Dun & Bradstreet - Polaris Software Banking Awards 2011

Best Foreign Bank in India Best Priority Sector Lending - Foreign Bank in India Finance Asia Country Awards for Achievement 2011

Best Foreign Commercial Bank in India The Financial Times and Investors Chronicle Wealth Management Awards 2011

Best Global Private Bank

FX Week Best Banks Awards Survey 2011

Best Bank for FX in Asia-Pacific Best Bank for Emerging Asian Currencies Global Custodian Agent Banks in Major Markets Survey 2011

Leading Clients - Top Rated in Hong Kong Leading Clients - Top Rated in Japan Leading Clients -Top Rated in Singapore Leading Clients -Top Rated in South Korea Hong Kong General Chamber of Small and Medium Business 2011

Best SMEs Partner, Hong Kong Hong Kong Service Awards 2011

Priority Banking (Financial Services) in Hong Kong ICSA Hermes Transparency in Corporate Governance Awards

Best FTSE 100 Annual Report IDC Financial Insights Innovation Awards 2011

Excellence in Customer Centricty in Hong Kong Interactive Media Awards 2011

Outstanding Achievement in Banking Jane's Transport Finance Awards 2011

Shipping Finance Innovator of the Year Shipping Leasing Innovator of the Year Risk.net Structured Product Asia Awards 2011

Best in China Best in India Award for Structured Products SCMP/IFPHK Financial Planner Awards 2011

Company for Financial Excellence- Banking in Hong Kong Company of the year- Banking in Hong Kong

Industry Winner- Banking in Hong Kong Treasury Management International Awards for Innovation & Excellence in Treasury 2011

Best Bank for Cash Management - Middle East & Africa Best Bank Financial Supply Chain - Asia Best Bank Capital Markets & Investment Banking - Asia Web Marketing Association's Web Awards 2012

Bank Standard of Excellence, Financial Services Standard of Excellenc.

13.6 Background of Standard Chartered Credit Cards

Types of Credit Cards Credit cards have come to the rescue of people with hot pockets. They, nowadays, put their trust in the innovation of credit cards where they need not carry large sums of money with them; instead simply carry a credit card which is linked up with their bank account enabling them to make payments without batting an eye. It is a trend, now, to make payments at a hotel, restaurant or a departmental store/ mall using a credit card. Because of the fear of one's bank account details being swiped and stolen, more and more credit cards are made secure so that even if a credit card is stolen, the money in one's bank account stays safe. Credit cards now are of various types with different fees, interest rates and rewarding programs. When applying for a credit card, it is important to learn of their diverse types to know the one best suited to their lifestyle and financial status. Different types of credit cards available by banks and other companies/organizations are briefly described below. Standard Credit Card: This is the most commonly used. One is allowed to use money up to a certain limit. The account holder has to top up the amount once the level of the balance goes down. An outstanding balance gets a penalty charge. Premium Credit Card: This has a much higher bank account and fees. Incentives are offered in this over and above that in a standard card. Credit card holders are offered travel incentives,

reward points, cask back and other rewards on the use of this card. This is also called the Reward Credit Card. Some examples are: airlines frequent flier credit card, cash back credit card, automobile manufacturers' rewards credit card. Platinum and Gold, MasterCard and Visa card fall into this category. Secured Credit Card: People without credit history or with tarnished credit can avail this card. A security deposit is required amounting to the same as the credit limit. Revolving balance is required according to the 'buying and selling' done. Limited Purpose Credit Card: There is limitation to its use and is to be used only for particular applications. This is used for establishing small credits such as gas credits and credit at departmental stores. Minimal charges are levied. Charge Credit Card: This requires the card holder to make full payment of the balance every month and therefore there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income level and high credit score. Penalty is incurred if full payment of the balance is not done in time. Specialty Credit Card: is used for business purposes enabling businessmen to keep their businesses transactions separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an accredited 4-year college/university cTheirse can avail this benefit. Prepaid Credit Card: Here, money is loaded by the card holder on to the card. It is like a debit card except that it is not tied up with a bank account.

13.7 Top Standard Chartered Bank Credit Cards

Super Value Titanium Credit Card by Standard Chartered Bank Credit Card Type: Rewards, Fuel

5% cash-back* on all fuel pumps (HPCL,IOC, Shell, BP etc.) 5% cash-back on telecom bills (BSNL, Airtel, Aircel, Idea, Tata etc.) 5% cash-back on utilities bills (Electricity, Water etc.). 1 Reward Point per Rs.100 spent in other categories. Apply for Standard Chartered Super Value Titanium Credit Card Card Type MasterCard Card Tier Titanium Annual Fee* Rs.0 Joining Fee Rs.0 APR 37.2%

* 2nd year onward annual fee is Rs.750. You can get a cash back of a maximum of Rs. 100/Transaction, Rs.500/Month or up to Rs. 6,000/Year with this card on Their purchase on fuel, utility and telecom. Minimum transaction value of Rs. 500 to avail cash back

Gold Rewards Credit Card by Standard Chartered Bank Credit Card Type: Rewards

2 Reward Points per Rs.100 spent. Plus additional benefits. Apply for Standard Chartered Gold Rewards Credit Card Card Type Card Tier Annual Fee* Joining Fee APR

Visa

Gold

Rs.0

Rs.0

37.2%

* 2nd year onward annual fee is Rs.250

Manhattan Platinum Credit Card by Standard Chartered Bank Credit Card Type: Rewards

5%* cash-back on spend at supermarkets and department stores such as Reliance Trends, Pantaloons, Lifestyle, Westside, Central, Shopper Stop, Mark & Spencer, Reliance Fresh, Big Bazaar, Food Bazaar, More.

5 Reward Points per Rs.100 spent in other categories. Plus additional benefits. Apply for Standard Chartered Manhattan Platinum Credit Card Card Type Visa Card Tier Platinum Annual Fee* Rs.0 Joining Fee Rs.0 APR 37.2%

* 2nd year onward annual fee is Rs.999. Cashback- Max Rs. 200/transaction, Max Rs. 500/month

Platinum Rewards Credit Card by Standard Chartered Bank Credit Card Type: Rewards

5 Reward Points per Rs.100 spent on hotels, dining, fuel 2 Reward Points per Rs.100 spent on other categories. Plus additional benefits. Apply for Standard Chartered Platinum Rewards Credit Card Card Type Card Tier Annual Fee* Joining Fee APR

Visa

Platinum

Rs.0

Rs.0

37.2%

* 2nd year onward annual fee is Rs.750

Bajaj Finserv Platinum Credit Card by Standard Chartered Bank Credit Card Type: Rewards

5 Reward Points per Rs.100 spent at supermarkets, department stores, grocery and retail apparel stores.

2 Reward Points per Rs.100 spent on other categories. 1 extra Reward Point per Rs. 100 for spend above Rs. 50,000 in a statement cycle.

10 Reward Points per Rs.100 spent on yTheir birthday Apply for Standard Chartered Bajaj Finserv Platinum Credit Card Card Type MasterCard Card Tier Platinum Annual Fee* Rs.0 Joining Fee Rs.0 APR 37.2%

* 2nd year onward annual fee is Rs.999

Breeze Banking Credit Card by Standard Chartered Bank Credit Card Type: Rewards, Fuel, Travel

5X Reward Points on yTheir chosen high spend categories such as fuel, movies, travel, department stores etc.

Design yTheir own card with yTheir own picture. Apply for Standard Chartered Breeze Banking Credit Card Card Type MasterCard Card Tier Titanium Annual Fee* Rs.0 Joining Fee Rs.0 APR 37.2%

* 2nd year onward annual fee is Rs.999

Platinum Elite Credit Card by Standard Chartered Bank Credit Card Type: Rewards, Premium , Travel

5 Reward Points per Rs. 100 spent on hotels, dining, and fuel. 2 Reward Points per Rs. 100 spent on other categories. Complimentary membership to 600+ airport lounges worldwide. Access to 2000+ golf cTheirse worldwide including that in India. Up to 30% off on leading restaurants across India. Apply for Standard Chartered Platinum Elite Credit Card Card Type Visa Card Tier Platinum Annual Fee* Rs.6,000 Joining Fee Rs. 4,995 APR 37.2%

Emirates Platinum Credit Card by Standard Chartered Bank Credit Card Type: Premium , Rewards, Travel

4 Skywards Miles per Rs. 150 spent. Skywards miles is a frequent flyer program

of Emirates Airlines

27,500 bonus miles when you pay fee. Miles can be redeemed for tickets, upgrades and other items.

Complimentary membership to 600+ airport lounges worldwide. Rs. 1 Crore travel insurance. Apply for Standard Chartered Emirates Platinum Credit Card Card Type MasterCard Card Tier Platinum Annual Fee* Rs. 3,000/13,999 Joining Fee Rs. 0 APR 37.2%

Yatra Platinum Credit Card by Standard Chartered Bank

Credit Card Type: Rewards, Travel, Fuel

10% cash-back on base fare of tickets booked at yatra.com (max cashback Rs. 250 for domestic and Rs. 750 for international tickets)

10% cash-back on hotels and holidays booked at yatra.com (max cashback Rs. 1000)

4 Reward Points per Rs. 100 spent on yatra.com, 2 Reward Points for other purchases except fuel

Waiver of cancellation charges for tickets booked at yatra.com 2.5% fuel surcharge waiver across all petrol pumps. Exciting joining gifts and vouchers

Apply for Standard Chartered Yatra Platinum Credit Card

Card Type Visa

Card Tier Platinum

Annual Fee* Rs. 0

Joining Fee* Rs. 499 / 999

APR 37.2%

* 2nd year onward annual fee is Rs. 499. Get travel vouchers worth Rs 4000 with Rs. 499 joining fee. Get travel vouchers worth Rs. 8500 with Rs. 999 joining fee.

Standard Chartered Yatra Platinum Credit Card

Save while you travel Perfect for frequent travellers looking for great deals, enjoy cash back on yTheir travel and hotel spends both in India and abroad.

10% Cashback on travel spends on Yatra.com Joining gifts worth Rs. 4000 Yatra cancellation fee waiver on all bookings on Yatra.com 4X Rewards for spends at Yatra.com, and 2X Rewards on all other spends (except fuel) A powerful Credit Card that offers cash back on travel as well as rewards on all other spends.

Get 10% cashback on yTheir travel spends on Yatra.com along with 4X rewards, exciting joining gifts vouchers and waiver on Yatra cancellation fees for flights booked on Yatra.com. No restriction on frequency of cash backs availed. Earn 2 reward points for every Rs. 100 spent except on fuel. Save on yTheir fuel spends: Get 2.5% fuel surcharge waiver. Benefits Best suited for those who enjoy travel. A Credit Card that brings together great benefits in the form of cash back as well as rewards.

10% Cashback on travel spends on Yatra.com * - Domestic travel & Hotels - International travel & Hotels - Exciting welcome gifts * For further details please refer to the Terms & Conditions.

4X Rewards on spends at Yatra.com2X Rewards on all other spends (except fuel) - Dining - Shopping - Hotels

Convenient Payment Options * - BillDesk - NEFT / IBFT - Visa Money Transfer - Net Banking - ECS

BREEZE BANKING Card

Build yTheir card to suit yTheir individual needs Enjoy a card that lets you personalise yTheir banking experience

Design yTheir own card by uploading a picture or choosing from Their gallery

Earn 5X rewards on where you spend the most Get great offers and discounts from vendors specific to Breeze banking

Platinum Rewards Card

For the financially smart spender Enjoy one of the best rewards program and unmatched lifestyle benefits

Get the best in class rewards at hotels, dining outlets and more locally and overseas.

Leave all yTheir worries to Their concierge service. Enjoy unmatched offers on holidays, golfing retreats, movie tickets, dining and more.

Benefits

The Platinum Rewards Card offers one of the best in class Rewards Program and offers unmatched Lifestyle benefits - tailor made for the financially smart spender.

Attractive Rewards Concierge Services

Manhattan Platinum Card

Shopping can be rewarding. Enjoy cash back as well as rewards whenever you shop

Get 5% Cashback every time you shop at supermarkets and departmental stores

Earn 5 reward points for every Rs. 100 spent except at supermarkets and departmental stores.

Benefits

Best suited for those who enjoy shopping. A powerful Credit Card that brings together serious benefits in the form of cash back as well as rewards.

5% Cashback on Credit Card spends at Supermarkets & Departmental Stores* - More

- Reliance fresh - Big Bazaar - Food Bazaar *Indicative list

5X Rewards on all yTheir other Credit Card spends on - Hotels - Dining - Airline ticket Reservation - Fuel

Convenient Payment Options * - BillDesk - NEFT / IBFT - Visa Money Transfer - Net Banking - ECS

Super Value Titanium Card

Greater savings all round Enjoy cash back on fuel and telephone bills

5% Cashback on Fuel across all petrol pumps 5% Cashback on all telecom payments including phone bills 5% Cashback on all utility bill payments

Benefits For the individual who knows his mind and his pocket. The card offers great savings as cashback on Fuel and Telephone bills

5% Cashback on Fuel across ALL petrol pumps 5% Cashback on all Telecom payments including phone bills 5% Cashback on all Utility bill-payments

Inner Circle Platinum Card

Go for more and get the most Enjoy the privileges of a world class Platinum card and unmatched benefits of Lifestyles exclusive Inner Circle membership

Up to 7X Rewards or 5% value back on spends at Lifestyle & Home Centre. Gift Vouchers of INR 1500* subject to minimum spends. Reward Redemption at Lifetsyle, Home Centre, Max, Spar & other Inner Circle affiliated stores.

Tiered RewardsTheir unique tiered rewards ensure that you get more value back as you spend more. Earn a minimum of 6 and up to 9 X reward points or 6%* value back at all Lifestyle and Inner Circle affiliated stores.

Welcome Gift CouponsDiscount coupons of total worth INR2500* will be sent with yTheir credit card to make it a delightful beginning.

Wide Range of Redemption OpportunitiesReward points earned on the card can be redeemed across all Inner Circle affiliated stores like Lifestyle, Home Centre, Bossini, Max Retail, SPAR, Citymax chain of restaurants (Polynation, Fun city, The Yellow Chilli, Gloria Jean's coffee).. The value of 1 Reward Point = INR 0.60.

Emirates Platinum Card

Enjoy unmatched bonus miles The perfect card for frequent travellers, golfers, and those that are a cut above.

Earn 4 Skywards Miles for every Rs.150 spent on the card. Get 27,500 bonus Miles for a fee. Access to over 500 VIP airport lounges across the globe Comprehensive travel insurance coverage of Rs. 10 Million

Benefits The Emirates Platinum credit card epitomizes rare luxury and rare value. Its an offering that spoils you for luxury. Best suited for frequent travelers, golfers, and lets just say for those that are a cut above.

Earn and Fly*Earn 27,500 miles and fly to Dubai. Earn 55,000 miles and fly to Rome, Paris, London and such other exciting places. Earn 85,000 miles and fly to U.S.A.

*Miles may vary as per availability & type of fare. Please refer towww.skywards.com for more details.

Relax in Luxury Complimentary Membership to over 600 lounges globally. Nominal usage fee of USD 27 per member.

Be Safe while you fly

- Comprehensive Travel Insurance upto Rs.10 million

covering Air Accident, Hijack , Trip delays, Baggage loss and much more.

14. CONCLUSION

The major benefit of a credit card is that the individual using it does not require ready cash to make payments for various purchases. No immediate cash is required for several expenses when a person has a credit card. This will ensure that the person does not have to carry the money with him/her at the time of making the expense. Free credit is the advantage that sets credit cards apart from other types of borrowings. Most of the borrowings by an individual whether short term or long term come with a cost in the form of interest. As long as a person pays within the credit period the amount spent using a credit card, there will be no interest charge to be paid, which means free credit for the cardholder. However, one has to be alert in using the credit because any slip-up can lead to a position where he/she needs to pay a heavy charge. The best thing about a credit card is that there is no restriction about the time and place of its use. A credit card can be used in any city; more importantly, when traveling abroad it frees a person from having to keep foreign currency with them. This is a major relief because carrying foreign currency around in a foreign land becomes a bit difficult task for any traveller. Thus, a credit card becomes very important for someone who is on a long trip across different nations or needs to travel worldwide for business. The limit on a credit card is fixed. This means that a person knows the maximum amount that can be spent on his/her credit card. If cardholders take due care this also becomes a way in which they are able to track the expense that they make, and this can limit the amount spent by them using their credit cards. Having credit cards with a specific limit will help in achieving this objective. Over the Internet you need a credit card as most e-commerce sites allow payments only through credit cards.

15. LIMITATIONS

There are various features of a credit card that seem to be a gift for the person using the card. But a little bit of carelessness can change the entire position and the same factor can end up being a curse for the credit card user. The cost for this has to be paid in the form of higher interest and charges that make it a costly way to use funds if due care is not taken. Interest cost The interest that a person pays while using a credit card is the highest among all the options available in the market. Specific loans come at reasonable rates, for example, a car loan can be taken at an interest rate of 14%-15% per annum. Similarly, a personal loan where there is no restriction on the end usage is available at the rate of 18%-19% per annum but when it comes to a credit card the amount paid by a user is anything between 35%-42% depending upon the exact rate charged. This makes credit cards one of the costliest ways of borrowing, and hence one has to be extra vigilant in trying to avoid this high cost. Charges The payments made by a credit card user do not end with interest charges because there are a lot of other payments that might be required to be paid on the credit card. This is mainly in the form of penalties and charges. For example, inability to pay the required amount of the credit card in time can lead to a late payment charge that can be anything between Rs 300-Rs 500. Similarly, making expense over the credit limit might be permitted by the credit card company but this comes at a hefty price in the form of a high charge. All these can add up to a significant figure, increasing the overall cost of using the credit card. Credit trap Things are great as far as the usage of the credit card is concerned when things are under control. In such a position, there can be no charge and no interest payment but the moment one falls into the revolving cycle there are a whole lot of factors that impact the person at the same time. For example, the moment one full payment is

missed every single expense is covered by the interest rate and no credit period is available. Similarly, more and more usage of credit cards is encTheiraged which often makes the payback a difficult task for the user. Multiple credit cards The other disadvantage is that people accumulate more and more credit cards as these are issued very easily by banks. This makes the problem of managing multiple credit cards a very difficult task. Remembering the payment dates and amounts for each one along with the other requirements often become a tough task leading to missing out on some occasions. This can result in a large amount of charges coming in which is an additional cost. Using multiple credit cards also leads to lower control over the overall finances because of the large amount of borrowings that pile up. Overspending A credit card is the worst enemy of impulsive buyers. A credit card user is always liable to develop a tendency of overspending. For example, if yTheir salary is Rs.50, 000 and the credit limit on yTheir card is Rs.1, 00,000, it doesnt mean that you can afford to spend Rs.1,50,000. The additional Rs.1,00,000 is just a loan facility provided, and as all loans are repaid this one too needs to be paid off.

16. Questionnaire on Credit Cards

Name: _______________________________ City: _______________________

Date: ________________

State: ______________________________

Mobile No.:________________________________

1. Gender o Male o Female

2. What is Your Occupation? o Business o Service o Professional o Others- ________________

3. Age Group of Credit Card users. o 15 to 25 o 25 to 40 o 40 to 60 o Above 60

4. Annual Income of the Credit Card user. o < 1,00,000. o 1,00,000 to 5,00,000 o 5,00,000 to 10,00,000 o > 10,00,000

5. Which Bank Credit Card do you use? o Standard Chartered o HSBC Bank o HDFC Bank o AXIS Bank o Other

6. How long have you been using the Credit Card? o Less than 6 months o 1 to 2 years o 2 to 4 years o More than 4 years

7. How often do you use your Credit Card? o Daily o Once a week o Once a month o Often

8. Which bank provides you with the best Credit Card Services? o Standard Chartered

o HSBC Bank o HDFC Bank o AXIS Bank o Other

9. For what purpose do you use your Credit Card? o E-Ticketing o Online Shopping o Bill Payment o Other- ___________

10. On a daily basis what kind of transaction would you prefer? o Cash Transactions o Credit Card Transactions