SBI to launch Rs 25,000 limit credit card soon
Vijay Jasuja believes that it will take about a year for normality to return post demonetisation as infrastructure like Point of Sale (PoS) terminals acceptance, manufacturing capacity and regulations are time consuming.
Amid the demonetisation causing cash crunch, State Bank of India has decided to seize the opportunities to increase its customer base by offering a credit card with a cap of Rs 25,000 for those at the lower strata of the society.
Vijay Jasuja, Chief Executive SBI Cards & Payment Services (SBI Cards), told media agency in an interview, "For the lower strata of society who do not have credit worthiness to get card, what we understand today is that each bank account has some money. So, we can give them secured card, even if they don't have any credit history. So, card with a limit of Rs 25,000 against the security of bank deposit can be given to anyone."
He further emphasized the trouble is not lack of money to spend, but lack of cards. He claimed that SBI Cards will offer them secured cards in about two-three months.
Since sudden ban of Rs 500 and Rs 1000 notes on November 8,SBI Cards has been witnessing a surge in card usage and expects to add 20-25 per cent more customers.
"Since demonetisation, there is surge in the usage of cards both in terms of number of transactions and volume. Our plan was to grow by 900,000 to 100,000 cards in one year but with this change, it will be extra by at least 20-25 per cent new set of customers," he said.
He also said that the company has simplified card acquisition process and is planning to reduce the income cut-off criteria for giving credit cards to potential customers. He added that even Jan-Dhan account holders can be potential customers.
SBI Cards is also in the process of speeding up customer acquisition process by reducing the delivery period so that more and more people are added to the network. In addition, the company plans to deploy more people on the field to talk to those who want cards, accept their application, document and quicken the period of processing and delivery.
With less encouragement for cash transaction post demonetisation, Jasuja is of the view that there will be major shift in consumers' spending behaviour.
He further said the company's strategy is now that people should be able to get cards in a relatively hassle-free manner and that more and more people should be covered.