Business Credit Cards for Bengali Businessmen

West Bengal Chief Minister Mamata Banerjee today launched a Micro Business Credit Card, which will give a boost to MSME sector in the state. At a programme here at the state secretariat, Banerjee said the Micro Business Credit Card, the first of its kind in India, would facilitate small and medium business entrepreneurs in the state.

"We must concentrate on small things. Small grows into big. We must take care of the small. No one becomes a big industrialist in a day," Banerjee said. "Business credit cards are being given so that even farmers can start businesses," she said.

With the launch of the card, the small and medium entrepreneurs would be able to avail of cash credit or loan up to Rs 5 lakh for their business activities, even without collateral security. The chief minister thanked the authorities of the State Bank of India for extending support to the state government in this venture. Giving the details, she said that a fund of Rs 200 crore had been created for the purpose and a simplified clearance process chalked out. "We will start facilitation and clearance centres in Bardhaman, Durgapur, Asansol and other places to expedite the clearance process," she said.

Banerjee further said that under the scheme there would be no requirement of guarantee up to Rs 5 lakh. "We have given Kisan Credit Cards to 65 lakh people in three years. Nearly 3.2 crore people out of 9 crore in the state get rice at Rs 2 per kilogram. It is my duty to help the people to progress." she added.

SBI Chief General Manager Prashant Kumar said the scheme had been taken up by them as a pilot project and added "on its success we will introduce it in other states. We thank the state government for taking such an initiative." State Finance Minister Amit Mitra and the Panchayat and Rural Development Minister Subrata Mukherjee were present on the occasion.

latest RBI guidelines on Credit cards

The RBI on has warned banks and financial institutions to strictly follow its guidelines on credit cards regarding transparency in charging interest rates and levying other fees on customers or face penal action.
"All banks are once again advised to strictly adhere to the guidelines... both in letter and spirit," an RBI circular said, adding that the violation would invite penal action. 

The RBI has issued fresh directives in view of the numerous complaints from credit card holders, especially with regard to excessive finance charges and issuance of unsolicited cards, it said. 

Besides, complaints like charging annual fee on what were being offered as free cards, issuance of loans over phone, disputes over wrong billing, difficulty in accessing the credit card issuers and poor response from the call centres, it said. 

Giving detailed guidelines for credit card operations, the RBI had earlier asked the banks to declare upfront the interest rate, various charges and the methodology of calculation of finance charges with illustrative examples. 

As per an RBI circular issued in 2007, card companies should prescribe a ceiling rate of interest, including processing and other charges in case of small value personal loans and loans similar in nature. 

There should be transparency in levying differential interest rates, it had said, adding, the banks should publicise through their website and other means, the interest rates charged to various categories of customers. 

The circular also advised banks to indicate to the credit card holder upfront, the methodology of calculation of finance charges with illustrative examples, particularly in situations where only a part of the amount outstanding is paid by the customer. 

RBI had also asked banks to ensure that wrong bills are not raised and issued to customers. In case, a customer protests any bill, the bank should provide explanation and, if necessary, documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances, the circular had said. 

There are host of banks, which issue credit cards, including ICICI Bank, HDFC Bank, SBI Cards, Punjab National Bank. Besides, many foreign banks like Standard Chartered, HSBC, Citibank also offer them. 

There are about 1.9 crore credit card users in India.
moreRBI guidelines on Credit Card

SBI Card - now the most trusted Credit Card

SBI Card has received the title of the most trusted brand in credit card segment. The title was conferred by Reader's Digest Asia Trusted Brands Survey. SBI Card has been voted as the best since the last three years.

The card mainly focuses on customer directed activities. The 250 service camps laid recently had been a part of this move. The camps helped SBI Card reach 2,10,000 customers across 31 Indian cities.

Which Low interest Credit Card to Apply?

SBI Card in the only credit card in India which facilitates its customers with 13 different modes of payment.

Last year, SBI Card won several Indian and Asian awards including the most trusted brand in credit card category in the Reader's Digest Asia Trusted Brands 2009 Survey, a consumer choice award from CNBC Awaaz and ‘Asia's Best Mature Captive Services Delivery' award from the Shared Services Outsourcing Network (SSON).

Reader's Digest Asia Trusted Brands Survey was came into existence in 1999 and has successfully been carried out so far.

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"Pay with Points" from American Express

American Express, through its Membership Rewards program, has introduced ‘Pay with Points’, a feature that makes booking flights easier and faster than before for its Platinum cardmembers and the Platinum Reserve credit cardmembers. Pay with Points feature allows cardmembers to instantly redeem membership rewards points for all or part of the cost of any leading airline ticket without blackout dates or restriction when booking travel through American Express Membership Travel Services. 

Which Airline Credit Card to apply?

In the past, American Express cardmembers were able to convert rewards points to frequent flyer miles with Membership Rewards partner airlines. Now in addition, with this ‘Pay with Points’ feature, the cardmembers have an option to use their membership reward points to fly on any leading airlines free of blackout dates or restrictions or memberships to Frequent Flyer programmes.


Cardmembers can call American Express Membership Travel Services to book tickets availing of a choice of airlines to fly including leading domestic and over 50 international airlines. Cardmembers can pay for tickets by combining points with part payment on their American Express Platinum Cards as well as pay fully with the points earned. 

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