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Basanti Bag
PC15MBA-034
United Bank of India
SIMILARITIES:
Both cards offer special rewards, such as points and
cash back on purchases made through the card.
Debit cards and credit cards can be used to make
online payments with the help of the Pin number
assigned to them.
They can be used to withdraw money from ATMs,
depending on the cash limit available on these cards.
DIFFERENCES
In the case of a credit card, the issuer offers credit and
overdraft facilities. This facility is not available with a debit
card, which will only debit payments from existing and
available funds within the cardholders account.
A credit cardholder therefore has a monthly bill to pay in
every month that the card is used. If they don’t pay that
bill, high interest charges are applied. A debit card holder is
free from the hassle of paying those bills, and from the risk
of building up large debts to credit card companies.
CREDIT CARDS:
Usage increased since early 1990s
Total number of cards increased from 2.69 crores in
December 2003 to 4.33 crore in December 2004.
Working group was set up for regulatory mechanism of
the credit cards
RBI received many complaints regarding various
undesirable practices by credit card issuing
institutions and their agents.
The working group has given recommendations
regarding the terms and conditions to be highlighted
and advertised to the customers
These recommendations are being processed within
RBI guidelines for healthy growth in the development
of plastic money in India.
HOUSING FINANCE
Loan to NRIs
the loan amount and interest rates depends on:
― Loan tenure
― Purpose of loan
― Repayment capacity of borrowers
― Estimated value of property
― Clear title deeds of the borrower
― Cost of the fund to the financier