As millions of Indians embrace credit cards for most financial transactions, the Reserve Bank of India is happy to ride this digital wave with Indians. From time to time, it introduces benefits to compel Indians to delve into the world of electronic finance.
In January 2020, with a view to dispelling apprehensions about credit card security, the Reserve Bank of India asked banks to permit solely domestic card transactions at ATM machines and PoS terminals in India.
The advantages of a credit card largely have to do with the safety of use. Additional safety measures that users can avail of with the new Reserve Bank of India safety rules include customizing cash limits on cards.
The Reserve Bank has also developed facilities to modify settings on credit cards so that international transactions may be disabled by users, lowering the risk of fraud. Recent cases of cyber fraud have coxed these steps.
There is a need for more secure ways in credit card dealings as India’s credit card usage has surged manifold, in some ways, due to the lockdown and contactless payments. Besides the advantages of security, credit cards offer financial transparency, convenience, and funds at hand when needed.
The Move Towards Credit Cards
In 2019, India was reeling amid an economic slowdown, with banks and lenders suffering from the fallout of scams and fraudulent acts. Credit was not readily accessible. Nonetheless, this didn’t stop Indian millennials, aspiring to fulfill every materialistic wish, from spending cash. As they continued to invest in everything from homes to devices, they thrived using credit cards.
Several Indians portrayed a demand for better rewards, deals, and discounts in the form of cashback offers. Credit card demand increased by 33% in 2019 from previous years. Armed with new-found information about credit cards, many an Indian has begun to use the best credit card on the market and use it wisely, in order to upgrade basic cards to premium ones.
Credit Card Advantages
People choose to use credit cards and card variants for many reasons. The main aspect of opting for a particular credit card is not just because it seemingly offers advantages, but because the card’s advantages relate to the user. You must always pick a credit card that matches your requirements.
Shoppers choose shopping-related credit cards as they offer rewards and discounts while purchasing products. The pros of a credit card far outweigh the cons, and if used responsibly, credit cards provide remarkable positives:
- Convenience – Instead of carrying a load of cash, you get to carry a single card that meets any expenses. Cards can work on Wi-Fi now and offer contactless payments.
- Introductory Offers – When you initially get a credit card, one of the advantages of a credit card you experience is an offer or a bonus. Some credit cards offer no-cost EMIs for the first year or zero interest offers for a temporary period.
- Cashback – Several credit cards come with cashback deals from time to time. These offers may be tied to a particular brand or product.
- Rewards Points – It’s common knowledge that credit cards offer rewards points when used. On the best credit card, you can get up to 4 rewards points for every 100 – 200 INR you spend, so the more you spend, the more points you accumulate. These can then be redeemed for cash. Premium cards have higher cash limits and greater rewards.
- Safety – Credit cards offer a secure way to pay. If there is a dubious use of a credit card, the credit company stands to lose funds, not you directly.
Credit Line – A credit card gives you a line of credit, so you can buy when you want something and pay later. This is a benefit for emergency use. You also have the convenience of paying for goods in EMIs through your card, affording flagship items.