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Rebound sign in debit card use

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By The Telegraph Online
  • Published 16.11.09

Mumbai, Nov. 15 (PTI): Debit card payments increased 38 per cent in the first half of the current fiscal to Rs 11,780 crore, signalling an uptick in consumer sentiment, the Reserve Bank of India said.

During the first six months of the last fiscal, debit card payments stood at Rs 8,531 crore, according to the RBI’s latest monthly bulletin.

“The rise in debit card payment is because of a spurt in consumer activities,” said an economist with a leading bank on condition of anonymity.

On the other hand, credit card transactions in the country have slumped 12 per cent in the first six months of this fiscal to Rs 29,330 crore as shoppers have decided against using their cards amid the ongoing economic slowdown.

During April-September this year, credit card transactions stood at Rs 29,330 crore against Rs 33,470 crore in the first six months of the last fiscal.

In September, credit card payments slipped to Rs 4,902 crore from Rs 5,635 crore in the same month of fiscal 2009.

The credit card business has been on a downslide since November last year.

The fall in credit card payment continues despite an increase in retail credit disbursal.

Experts said this might be because some banks had reduced credit limits of customers, thus hampering business.