Banks have also been asked to provide reasons in writing in case a credit card application has been rejected. In case of unsolicited card the RBI will hold the banks responsible for any liabilities resulting from the misuse of such credit cards. Banks will have to reverse the charge and also pay a penalty to the consumer in case there is any misuse of such credit cards.

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Most banks in India charge between 35%-40% depending on your credit history and the offer you have signed up for. In developed countries like the US the rate of interest is 12%-15% . This is mainly because of the high default rates in countries like India and risk factors associated with it. In developed countries consumers are rewarded with cheaper interest rates for prompt payments which are also not followed by banks in India.

Consumers in India have always had to pay what the banks demand, this new ruling looks like a step in the right direction finally.

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The card offers privileges like accelerated rewards program, exclusive rewards catalogue, a powerful air mile conversion option and travel benefits which include Rs 1 crore air accident insurance and complete fuel surcharge waiver across pumps. There is also a full-fledged concierge service, ‘i-Assist’ to address the lifestyle needs of the cardholders.

The Platinum Identity Credit Card offers the following features:

- Welcome privileges - Golf Fee Card with two year membership and Priority Pass
- Accelerated rewards earn – double reward points on international spends, fast-forward earning through the powerful Xpress Rewards program
- Exclusive rewards redemption catalogue ‘Hand-picked Rewards’ featuring premium brands
- Superior air mile conversion program – Convert your reward points into air miles
- Comprehensive air accident insurance of Rs. 1 crore
- Complete waiver of fuel surcharge
- ‘Specials’ -Exclusive offers in lifestyle categories
- ‘i-Assist’ - A round-the-clock, complimentary service that provides assistance with travel and restaurant reservations, gift arrangements, event tickets, and more.

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The ‘2 in 1 transit credit card’ is a first of its kind in India and offers many exciting privileges to the Delhi Metro users. Some of the features include discounts of travel fares on Delhi Metro, 2 reward points for every Rs.100 spent on Delhi Metro and 1 reward point for every Rs.100 spent anywhere else. The reward points are convertible into Delhi Metro miles which can be exchanged for free rides on the Metro. The credit card also offers 5 free add on cards so the entire family can use it.

Check out the TV Ad below.

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The new credit card to be launched by the end of 2009 will be available to the Indian consumer at lower interest rates and risk reduction capabilities. The idea is to increase the use of plastic money among Indians. A similar approach by the Chinese government called “Union Pay” has been successful since it launch in 2002.

If these credit cards are available at lower interest rates, is it possible that banks will also lower their high interest rates to match it? Credit card users in India pay a higher interest rate compared to most countries in the world. This credit card should come as some relief hopefully.

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Click here to know more about the credit card and apply.

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So what is Identity Theft?

If a person obtains your personal or financial information with the purpose of committing fraud it is called Identity Theft. Thieves usually use your personal information to represent you falsely and apply for credit cards or bank accounts. Even before you know your information could have been used to apply for loans or borrow funds that you may end up being liable for. The reason why it takes time is because we often fail to review our credit card or bank statements thoroughly.

How is Identity Stolen?

Your trash bin is a gold mine of personal information. Thieves often go through trash to recover old telephone bills, credit card statements, bank statements or junk mail that may have personal information.

Stealing or pick pocketing this is a plain and straight forward approach that thieves could use to get access to your vital financial information.

Phishing, this is where it gets hi-tech. You often get spam e-mails that look like it was sent from your bank. They make it look so real that you would be fooled into thinking it was genuine. They ask for your personal information and before you know thieves have access to your bank account.

It could even happen at a gas station or a restaurant where you hand over your credit card to an unreliable employee who can copy and misuse your credit card information.

So what do thieves do with your identity?

New age thieves can cause a lot of damage with your stolen identity. They can open new credit card accounts and not pay the bills. They can open new bank accounts under your name, apply for loans, or they could simply call the bank and request for a change of address and ask them to mail you a new credit card. There is no limit to what they can do with your information.

So how do you protect yourself from identity theft?

It always pays to be careful with how you handle your personal information. Awareness is your biggest weapon against this crime. Be aware and know how to detect if you have become a victim of identity theft. Here are some steps to safeguard your identity:

1. Shred old telephone, credit card, bank statements or any financial document that you wish to throw away
2. Never click on suspicious looking links in your email
3. Change your computer/online password regularly and make it difficult to guess
4. Protect your wallet; do not store PIN numbers with your credit cards/ATM cards. Call the bank and report it stolen immediately to avoid any liabilities.
5. Do not give your financial information over phone to suspicious telemarketers. Offer to call them back at the bank before disclosing any financial information.
6. Do not share your PIN numbers with anyone.

These are just some tips; there is a lot that you can do to avoid being a victim. The important thing to do is to be aware and be in control of your identity.

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The whole idea behind this initiative is to provide easy access to users where they can use their mobile phone to make purchases. I am not sure how they plan to implement this. Credit card applications are screened and filtered before being approved as being credit worthy, how are they going to screen mobile phone users? Based on their last statement? I can understand if existing credit card users are able to use their mobile phones as another medium to perform a transaction but converting a mobile phone user into a credit card user?

Using your mobile to carry out banking operations is fine since you do not need any credit worthiness to do that, but providing credit facility on the same will be interesting to watch.

Like I said, this is still on paper and a lot of thought needs to go into it. How safe is this going to be? More people loose mobile phones than they loose credit cards, is this going to be secure enough?

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