December 19, 2016
Even though demonetisation has led to an increase in credit card usage in the country, overall value of credit card transactions has dropped. According to bankers, there has been a drop in high-value purchases with credit cards such as purchase involving jewellery and consumer durables. However, there has been an overall increase in the number of credit card transactions as more people are now using their credit cards to make payments for daily essentials such as groceries. Overall, there has been an increase in the usage of debit cards for purchases. Earlier, many people used their debit cards only to withdraw cash from ATMs. But post demonetisation, people are using their debit cards for all kinds of payments due to the shortage of paper currency.
Industry experts are of the opinion that credit card usage and overall value of transactions will soon be on the rise as the government has announced multiple incentives for card payments. The central government has been pushing for a digital and cashless economy and have even announced discounts and other incentives for people to go cashless.
If you are someone who uses his or credit card on a regular basis to make payments now, do keep in mind that your card comes with a high interest rate. Make your payments on time and preferably pay your card balance in full to avoid paying interest.