Banks and credit card companies in India are, reportedly, trying to manage the credit card dues by blocking cards.
According to reports, some companies are blocking the cards even for not paying minimum dues on monthly payments at the mentioned time, whereas others are disabling cards within ten days after the set date. However, banks pointed out that they give enough notice before disabling the cards.
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Kotak Mahindra Bank spokesperson was quoted by The Times of India as saying that they give a sufficient window period of 72 days from the due date before they disable the card.
Banks recently started adopting strict practices for issuing credit cards as total outstanding dues or debts touched 6% in India after the 2008 crisis.
SBI Card CEO Pallav Mohapatra said right now, delinquency levels are at 1.5%.
"From an industry standpoint, there is some risk build-up on account of the external environment," Mohapatra added.
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By GlobalDataCredit Information Bureau (CIBIL), India’s apex body providing credit information, consumer relations senior vice president, Harshala Chandorkar, said a lot of customers have misconceptions about minimum dues and they are not aware that they would have to pay a high interest on the balance.
