Soon Banks will be hiking their sub-PLR rates and other retail rates like credit card and auto loans rates. Previously in April RBI in three phases hiked the cash reserve ratio (CRR) by 75 basis points, sucking Rs 27,500 crore from the banking system.
A Mumbai-based chief of a public sector bank said, “Since, we cannot hike our prime lending rates (PLR), since the finance minister has asked us not do so, we will increase the sub- PLR rates which are availed of by the corporate cheaper than the PLR,”
On the other hand the country’s largest credit card player, ICICI Bank has crop up a concept of “tiered pricing”.
Simultaneously, the bank is claiming that it has reduced the rates.
Meanwhile the customers of few foreign banks are receiving their latest credit card statements in which the banks have started informing about the rate hikes.
According to the sources from Citibank, recently it has raised credit card rates and is charging the customer about 3-3.5% on a monthly basis. The other foreign bank, Netherlands –based ABN AMRO Bank has raised its credit card rates from 3.1% to 3.2-3.5% on monthly basis, which will be effective from June 1.
The ICICI Bank credit card customers will also be seeing rise in rates going up by 2%. As per the sources at present the bank is charging 1.51%-3.41% against a flat 2.99% earlier.
Wednesday, May 14, 2008
How fraudsters skim your credit card details
Now day’s card reading device is available to skim the credit card or debit card data. Some time back Mumbai police arrested one person for purchasing card-reading device through online shopping site.
Let us see what is skimming and how it is done.
Skimming is the direct transfer of electronic data from the magnetic strip on a credit card or debit card to a card-reading device.
The skimmed data is then transferred from the reading device onto another plastic card having a magnetic strip on it. With this fraudster can create a card with the same characteristics and use it freely - till identified or caught.
Be careful skimming is illegal.
Generally skimming takes places at petrol stations, restaurants, hotels and such outlets where the swipe terminal is away from your sight.
What are the warning signs of skimming?
A shop assistant when takes your card out of your sight in order to process your transaction then there are full chances your credit or debit card details can be skimmed. In case you are asked to swipe your card through more than one machine. You might notice something suspicious (an attached device) around the card slot on an ATM. You notice a strange or unauthorized transaction in your account.
Safety measures from becoming a victim of skimming:
Keep your PIN safe. You should not disclose your PIN number to anyone. Keep watch on people who try to offer “help” at an ATM. Examine the ATM carefully before using it. If it doesn't look right, don’t use it. If an ATM has any unusual signage, don't use it.
In case your card gets stuck in the ATM machine after the transaction or after pressing ‘Cancel’, contact your card issuing authority immediately. Keep a check on your bank account statements to ensure that there are no unusual withdrawals.
Let us see what is skimming and how it is done.
Skimming is the direct transfer of electronic data from the magnetic strip on a credit card or debit card to a card-reading device.
The skimmed data is then transferred from the reading device onto another plastic card having a magnetic strip on it. With this fraudster can create a card with the same characteristics and use it freely - till identified or caught.
Be careful skimming is illegal.
Generally skimming takes places at petrol stations, restaurants, hotels and such outlets where the swipe terminal is away from your sight.
What are the warning signs of skimming?
A shop assistant when takes your card out of your sight in order to process your transaction then there are full chances your credit or debit card details can be skimmed. In case you are asked to swipe your card through more than one machine. You might notice something suspicious (an attached device) around the card slot on an ATM. You notice a strange or unauthorized transaction in your account.
Safety measures from becoming a victim of skimming:
Keep your PIN safe. You should not disclose your PIN number to anyone. Keep watch on people who try to offer “help” at an ATM. Examine the ATM carefully before using it. If it doesn't look right, don’t use it. If an ATM has any unusual signage, don't use it.
In case your card gets stuck in the ATM machine after the transaction or after pressing ‘Cancel’, contact your card issuing authority immediately. Keep a check on your bank account statements to ensure that there are no unusual withdrawals.
Friday, May 9, 2008
Hike in credit card rates act as silent killer
The increase in EMIs on housing loans have given pain to homeowners especially the ones who had borrowed when the interest rate were generous. On top of that most of the cardholders are not paying the credit card bills in full which has also become costlier though with far less visibility.
In the past few months the credit card companies have hiked interest rates towards which cardholder are not paying attention. Over the past 2-3 months most of the major card issuers including ICICI Bank, SBI Credit Card and other leading players have hiked interest rates by 3-5%.
The procedure of charging the interest on credit cards is the interest is charged when a customer carry forward credit beyond the payment cycle. The monthly rate can range between 1% and 3.4%, translating to 12-42% on an annual basis. However there has been hike in overall interest rates therefore, card companies have also affected a hike.
ICICI Bank, is the largest issuer of credit cards with over 7.5 million live cards, has increased interest rates from 2.9% to 3.15%. Thus there is an annual increase of almost 3%.
Sachin Khandelwal, head of ICICI Bank’s cards portfolio said, “We have increased the interest rates on credit cards last month, which will be effective for the billing from August. Impact on the consumers will be known only in September. The hike is a consequence of the general tightening of interest rates and most big players have already done it. ICICI was in fact the last to do it.”
On the other hand SBI Cards, joint venture between SBI and GE Money is the second-largest issuer of cards in India, has also increased rates. Though, the company has defined the rates on parameters like spending and payment behavior. The charges have gone up from 2.99% to 3.1%.
“SBI Cards charges interest rates ranging from 0.99-3.1% depending on the spending pattern and payment behavior of the consumer,” SBI Cards & Payment Services CEO Roopam Ashthana said.
Experts expressing their views said other major credit card issuers have also hiked rates in line with leading players. But some companies do not mention the interest rate charged on the monthly statements sent out to customers, therefore these rate hikes often go unnoticed by consumers. However, some companies do send out reports regarding this.
“All applicants are advised of the maximum interest rate chargeable at the time of application, at the time of card issuance and thereafter every month in their credit card statement,” Mr Ashthana said.
He added provision for a change in interest rates is mentioned in the terms and conditions given to a consumer at the time of issue of card.
In the past few months the credit card companies have hiked interest rates towards which cardholder are not paying attention. Over the past 2-3 months most of the major card issuers including ICICI Bank, SBI Credit Card and other leading players have hiked interest rates by 3-5%.
The procedure of charging the interest on credit cards is the interest is charged when a customer carry forward credit beyond the payment cycle. The monthly rate can range between 1% and 3.4%, translating to 12-42% on an annual basis. However there has been hike in overall interest rates therefore, card companies have also affected a hike.
ICICI Bank, is the largest issuer of credit cards with over 7.5 million live cards, has increased interest rates from 2.9% to 3.15%. Thus there is an annual increase of almost 3%.
Sachin Khandelwal, head of ICICI Bank’s cards portfolio said, “We have increased the interest rates on credit cards last month, which will be effective for the billing from August. Impact on the consumers will be known only in September. The hike is a consequence of the general tightening of interest rates and most big players have already done it. ICICI was in fact the last to do it.”
On the other hand SBI Cards, joint venture between SBI and GE Money is the second-largest issuer of cards in India, has also increased rates. Though, the company has defined the rates on parameters like spending and payment behavior. The charges have gone up from 2.99% to 3.1%.
“SBI Cards charges interest rates ranging from 0.99-3.1% depending on the spending pattern and payment behavior of the consumer,” SBI Cards & Payment Services CEO Roopam Ashthana said.
Experts expressing their views said other major credit card issuers have also hiked rates in line with leading players. But some companies do not mention the interest rate charged on the monthly statements sent out to customers, therefore these rate hikes often go unnoticed by consumers. However, some companies do send out reports regarding this.
“All applicants are advised of the maximum interest rate chargeable at the time of application, at the time of card issuance and thereafter every month in their credit card statement,” Mr Ashthana said.
He added provision for a change in interest rates is mentioned in the terms and conditions given to a consumer at the time of issue of card.
Citibank and Delhi Metro launched co-branded transit credit card
Delhi Metro Rail Corporation (DMRC) in a tie up with Citibank launched a co-branded '2-in-1' credit card, the Delhi Metro Citibank credit card. The card will double up as an access card for users of the transport system and also provide them with some other benefits.
Mr P S Jayakumar, Country Business Manager, Citi India said the "2-in-1" transit card combines the benefits of the Metro smart card with the advantages of a credit card.
It is the first of its kind of credit card in India that doubles up as a contact –less access card for Delhi Metro stations, allowing users 'tap and go entry', along with the advantages of a Citibank credit card, and is available to customers from today.
Earlier in 2006, Citibank had conducted trials of the “tap-and-go” or contact less payment at select New York City subway stations, in association with MTA and MasterCard. Following the trials, the service was rolled out at the New York subway MTA. However, the DMRC co-brand card is associated with Visa.
In addition to convenience, the card will also offer several benefits, including exclusive shopping deals and discounts in Delhi and the national capital region (NCR), fuel surcharge waivers at Indian Oil outlets and other privileges associated with a Citibank Credit Card.
The card is unique in several other ways. It is a "Delhi Delights" offering unique deals from some of the biggest brands in Delhi, including Dominos, Fun Cinemas, Nirula's, Bercos, India Today and VLCC. The card also carries reward points. Reward points accumulated on this card can be redeemed for free Metro rides, at the Citibank point-of-sale terminals, which are presently installed at Rajeev Chowk, Kashmere Gate, Barakhamba, Pitampura, Rajouri Garden and Dwarka Mor Metro Stations. These are scheduled to soon spread across other stations as well. Additionally, the card offers double reward points for Metro spending, and will not require the mandatory security deposit of Rs50.
"Citi has successfully launched similar products in New York and Singapore, both of which have been extremely well received. We expect to launch similar products in more countries in the next few months," said Surath Chatterjee, regional head of card products, Citi Asia Pacific
DMRC's director for operations Raj Kumar says, "DMRC is always looking to improve the transit customer's experience. We believe this product is the next step in providing our travelers unmatched convenience and reduced waiting times by combining an efficient payment mechanism with the Metro experience." He further added, "We are in talks with the Delhi Government to extend the reach of the card to city buses." He said discussions are at a preliminary stage and if the proposal gets approved, the same card could be used for traveling by buses.
On the customer attainment through the agreement, P. S. Jayakumar country business manager, global consumer group, Citi India said about two lakh Metro commuters can become card users. He said Citigroup is having about 36 lakh credit card users in the country.
Mr Jayakumar, country business manager, global consumer group, Citi India said, "As the Metro extends its operations further into Delhi and NCR, and with the forthcoming Commonwealth Games in 2010, the Delhi Metro Citibank credit card will fulfill the need of a world-class product for hassle free travel and shopping."
The Special Privileges on the Delhi Metro Citibank Credit Card:
Mr P S Jayakumar, Country Business Manager, Citi India said the "2-in-1" transit card combines the benefits of the Metro smart card with the advantages of a credit card.
It is the first of its kind of credit card in India that doubles up as a contact –less access card for Delhi Metro stations, allowing users 'tap and go entry', along with the advantages of a Citibank credit card, and is available to customers from today.
Earlier in 2006, Citibank had conducted trials of the “tap-and-go” or contact less payment at select New York City subway stations, in association with MTA and MasterCard. Following the trials, the service was rolled out at the New York subway MTA. However, the DMRC co-brand card is associated with Visa.
In addition to convenience, the card will also offer several benefits, including exclusive shopping deals and discounts in Delhi and the national capital region (NCR), fuel surcharge waivers at Indian Oil outlets and other privileges associated with a Citibank Credit Card.
The card is unique in several other ways. It is a "Delhi Delights" offering unique deals from some of the biggest brands in Delhi, including Dominos, Fun Cinemas, Nirula's, Bercos, India Today and VLCC. The card also carries reward points. Reward points accumulated on this card can be redeemed for free Metro rides, at the Citibank point-of-sale terminals, which are presently installed at Rajeev Chowk, Kashmere Gate, Barakhamba, Pitampura, Rajouri Garden and Dwarka Mor Metro Stations. These are scheduled to soon spread across other stations as well. Additionally, the card offers double reward points for Metro spending, and will not require the mandatory security deposit of Rs50.
"Citi has successfully launched similar products in New York and Singapore, both of which have been extremely well received. We expect to launch similar products in more countries in the next few months," said Surath Chatterjee, regional head of card products, Citi Asia Pacific
DMRC's director for operations Raj Kumar says, "DMRC is always looking to improve the transit customer's experience. We believe this product is the next step in providing our travelers unmatched convenience and reduced waiting times by combining an efficient payment mechanism with the Metro experience." He further added, "We are in talks with the Delhi Government to extend the reach of the card to city buses." He said discussions are at a preliminary stage and if the proposal gets approved, the same card could be used for traveling by buses.
On the customer attainment through the agreement, P. S. Jayakumar country business manager, global consumer group, Citi India said about two lakh Metro commuters can become card users. He said Citigroup is having about 36 lakh credit card users in the country.
Mr Jayakumar, country business manager, global consumer group, Citi India said, "As the Metro extends its operations further into Delhi and NCR, and with the forthcoming Commonwealth Games in 2010, the Delhi Metro Citibank credit card will fulfill the need of a world-class product for hassle free travel and shopping."
The Special Privileges on the Delhi Metro Citibank Credit Card:
- 10 per cent discount on travel fare paid with the '2-in-1' card
- 2 reward points for every Rs100 spent on the Metro, 1 reward point for every Rs100 spent elsewhere
- Facility for converting all reward points into Metro Points for free Metro rides (at the POS terminal itself)
- Associated with Visa international, accepted at over 14 million merchant outlets worldwide
- 2.5 per cent surcharge waiver on IOC petrol pumps
- Five free lifetime add-on cards
- The ''Delhi Delights'' offers from the best brands of Delhi
Tuesday, May 6, 2008
Police arrested a person for using others debt cards
Hyderabad police nabbed a person for using international debit cards issued to others for his personal use.
Police found Gangster Venkat Reddy alias Aziz Reddy two international debt cards - ING Vysya and ICICI bank in his wallet during the panchanama by the Shaikpet tahsildar on Thursday. The investigating office had collected information about details and transactions of the used by the gangster.
According to the sources in the police department said the ING Vysya international debit card recovered from the gangster, was in the name of one Srujan Kumar of SBI colony at Bakaram near Gandhinagar. Srujan Kumar runs a computer institute in Gandhinagar. When police interrogated him, Srujan Kumar reportedly told them that he had given his debit card to one Pavan Kumar. He reportedly expressed doubts that Pavan Kumar might have given it to Aziz Reddy.
Surprisingly, Pavan Kumar is neither a friend nor a relative of Srujan Kumar. The latter told police that Pavan Kumar knew him as he did a two-and-half-month computer course in his institute.
Srujan Kumar got the ING Vysya Bank debit card in May 2007 and there were Rs 1.40 lakh transactions in the last one year. Police department sources said currently balance in the account is nil.
Police officers told press the other debit card, issued by ICICI Bank, was issued elsewhere. "We are waiting for details from ICICI Bank, Mumbai which may come in a day or two.''
Police told that they recovered another debit card from his car which was on the name of another person.
Meanwhile, the black Innova's owner Abu Bakar is still at large. From the investigation the police recovered that Bakar's father Humayun Khan is a 'tantrik' and Aziz Reddy used to go to him for the well-being of his family for the last 11 years. A month ago, he took his wife to Humayun Khan as she was not well, police said.
"We are trying to locate Aziz Reddy's wife's address. The only evidence we have is her photograph,'' a senior police officer said.
Police found Gangster Venkat Reddy alias Aziz Reddy two international debt cards - ING Vysya and ICICI bank in his wallet during the panchanama by the Shaikpet tahsildar on Thursday. The investigating office had collected information about details and transactions of the used by the gangster.
According to the sources in the police department said the ING Vysya international debit card recovered from the gangster, was in the name of one Srujan Kumar of SBI colony at Bakaram near Gandhinagar. Srujan Kumar runs a computer institute in Gandhinagar. When police interrogated him, Srujan Kumar reportedly told them that he had given his debit card to one Pavan Kumar. He reportedly expressed doubts that Pavan Kumar might have given it to Aziz Reddy.
Surprisingly, Pavan Kumar is neither a friend nor a relative of Srujan Kumar. The latter told police that Pavan Kumar knew him as he did a two-and-half-month computer course in his institute.
Srujan Kumar got the ING Vysya Bank debit card in May 2007 and there were Rs 1.40 lakh transactions in the last one year. Police department sources said currently balance in the account is nil.
Police officers told press the other debit card, issued by ICICI Bank, was issued elsewhere. "We are waiting for details from ICICI Bank, Mumbai which may come in a day or two.''
Police told that they recovered another debit card from his car which was on the name of another person.
Meanwhile, the black Innova's owner Abu Bakar is still at large. From the investigation the police recovered that Bakar's father Humayun Khan is a 'tantrik' and Aziz Reddy used to go to him for the well-being of his family for the last 11 years. A month ago, he took his wife to Humayun Khan as she was not well, police said.
"We are trying to locate Aziz Reddy's wife's address. The only evidence we have is her photograph,'' a senior police officer said.
RBI will launch IndiaPay credit card
By the end of the next year the Reserve Bank of India (RBI) is planning to launch an IndiaPay credit card – an Indian version of the China UnionPay card.
On Saturday evening in a press conference RBI executive director R B Barman told , "Inspired by the success of the China UnionPay card, we will be launching a similar one in our country to promote the use of plastic money among Indians. The credit card will be especially designed for the common people with low interest rates and risk reduction facilities.”
Barman said the National Payment Council of India (NPCI) is preparing guidelines for the registration process of the card. The NPCI authorities has been authorized to decide on the type of the card - whether it would be a smart card or something else.
"If all our plans and government procedures gel well then we can hope to release this card in the market by the end of 2009," he added.
The China UnionPay card was introduced in 2002. The card can be used at over over 85,000 ATM counters of 14 major and other minor banks across the world. Besides, the card can function as regular MasterCard or Visa credit cards abroad.
On Saturday evening in a press conference RBI executive director R B Barman told , "Inspired by the success of the China UnionPay card, we will be launching a similar one in our country to promote the use of plastic money among Indians. The credit card will be especially designed for the common people with low interest rates and risk reduction facilities.”
Barman said the National Payment Council of India (NPCI) is preparing guidelines for the registration process of the card. The NPCI authorities has been authorized to decide on the type of the card - whether it would be a smart card or something else.
"If all our plans and government procedures gel well then we can hope to release this card in the market by the end of 2009," he added.
The China UnionPay card was introduced in 2002. The card can be used at over over 85,000 ATM counters of 14 major and other minor banks across the world. Besides, the card can function as regular MasterCard or Visa credit cards abroad.
Friday, May 2, 2008
Police recovered credit card of slain air hostess
The credit card of Sheeba Thomas a former air hostess with Virgin Atlantic airlines has been recovered by the Noida police.
Sheeba, a former airhostess with Virgin Atlantic airlines, was murdered by motorcycle-borne assailants around 11.20 pm on April 8 in sector 31 while she was returning home from a party, in her car.
Earlier police had nabbed Lacchi who revealed the names of others involved in the crime. On April 18 police arrested main accused, Mukesh alias Mukhia who during interrogation confessed before the police that he and his three accomplices had killed her when she tried to fend off their attempt to rob her.
Gajendra Shrotriya, Station Officer of Sector 20 police station, on Wednesday told to press that Mukhia have confessed that he had hidden Sheeba’s credit card in bushes at an abandoned plot in Sector 37. He said, Mukhia took out the credit card, which bore Sheeba's name, from the bushes and handed it over to the police.
Meanwhile the third accused in the case, Ashok, surrendered at the Chief Judicial Magistrate's court at Noida. Shrotriya said the police would seek Ashok's custody.
Sheeba, a former airhostess with Virgin Atlantic airlines, was murdered by motorcycle-borne assailants around 11.20 pm on April 8 in sector 31 while she was returning home from a party, in her car.
Earlier police had nabbed Lacchi who revealed the names of others involved in the crime. On April 18 police arrested main accused, Mukesh alias Mukhia who during interrogation confessed before the police that he and his three accomplices had killed her when she tried to fend off their attempt to rob her.
Gajendra Shrotriya, Station Officer of Sector 20 police station, on Wednesday told to press that Mukhia have confessed that he had hidden Sheeba’s credit card in bushes at an abandoned plot in Sector 37. He said, Mukhia took out the credit card, which bore Sheeba's name, from the bushes and handed it over to the police.
Meanwhile the third accused in the case, Ashok, surrendered at the Chief Judicial Magistrate's court at Noida. Shrotriya said the police would seek Ashok's custody.
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