Banks chasing away credit card customers?

With the economic slowdown hitting everybody, banks are also facing the heat. Banks like ICICI, HSBC and HDFC which were at one time aggressively acquiring new customers are now chasing away new customers. This is because of the increasing default rates and low rate of credit card transactions.

According to RBI data over 22 lakh credit cards have gone out of circulation since April 2008 either due to non renewals or cancellations. Banks have now started issuing fewer cards and no longer pursuing new customers with incentives like they used to do before. Banks have even started charging annual fees which was earlier waived off for new customers. Customers have also reduced their use of credit by over 5% as compared to the 25% increase last year.

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