Kolkata: While debit card usage is showing distinct signs of slackening, there has been a surge in credit card adoption in India. Data show that in the 5-year period between 2019 and 2024, the use of credit cards in India rocketed by as much as 81%. The surge has been continuing at a remarkable speed even after rising significantly. For example, in June 2024, credit cards in circulation in India jumped by 26% compared to the previous year. One of the most encouraging signs, according to banking circles, is that the use of credit cards is spilling over from the traditional strongholds like urban areas and proliferating in non-metro areas.
According to reports, the expenditure made through credit cards in July 2024 rose by 19% on a y-o-y basis. In September 2024, the amount spent through credit cards jumped by 25%. While many are moving towards credit card adoption, one must know what is an instant credit card. As the name implies, an instant credit card can be issued instantly, and does not make the applicant wait for a few days. Let’s see what an instant credit card is and what are its features.
Eliminating the need to wait for a credit card
The issue a credit card cannot be instant. If you examine a credit card, it becomes obvious why. Apart from the name of the applicant, a lot of data needs to be embossed on a plastic card that needs careful and confidential handling. Therefore, after application has to be evaluated and processed by the company who gets the application for a credit card. Then it has to be made and then dispatched physically to the applicant — the entire process requiring a few days from application to delivery.
However, in order to enable the customer use a credit card straightaway and not wait for a few days for the card to arrive, banks have devised a smart way. They issue what is called an instant credit card. It basically consists of the bank issuing the applicant the information that it needs to have a credit card. These are credit card number, expiry date of the card and CVV. Significantly, CVV is an abbreviation for Card Verification Value. It is usually a four-digit number printed on the reverse of the card and it establishes the identity of the buyer when he/she is conducting a purchase.
Features of an instant credit card
On receipt of application, a bank usually carries out a quiet credit check. It is based on the personal information that the applicant furnishes to the bank with the application. Since the applicant has a phone number linked to the Aadhaar card, an eKYC is quickly conducted with the help of the OTP. Once this eKYC is done, the bank does the credit check to figure out whether it will issue a credit card for the applicant. If the bank decides to issue a card, the applicant is issued card number, CVV and expiry date. The possession of this information enables the applicant to start using the card immediately for online purchase etc.
The usage of credit cards is showing a continuous and steep uptrend in India. While the physical delivery of a credit card needs a few days for the application to be processed, approved, the card printed and delivered, banks have devised a smart way of enabling the applicant to start spending on the card straight away (provided he/she is found credit worthy). Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
