Industry Odisha Bureau, Jul 9: The white paper reportedly prepared by the the Credit Information Bureau (India) Limited (CIBIL) has reportedly found out that the number of Indian credit card users is lower than the developing countries, while it is 25% of the overall credit-active population.
Media reports quoting the findings of the CIBIL-prepared white paper said that, “India has 5.2 crore credit cardholders, which is just 25% of the overall credit-active population of about 25 crores. On the contrary, Columbia’s proportion stands at 62%, UK’s 70%, USA’s 81% and Hong Kong’s 98%.”
Media reports quoting the findings of the CIBIL-prepared white paper also said that, “There are at present alternatives like the Unified Payments Interface (UPI), personal loans, et al, posing a tough competition to the credit card.”
Media reports further added that, “While a merchant discount rate of up to 2% is charged for each credit card transaction at present, a user cannot add credit cards from other networks to UPI apps.”
The CIBIL white paper reportedly noted that, “While the number of users holding three or more credit cards has grown to 22% from the 12% that used to be a decade ago, the share of live cards in consumption loans has decreased to 38% from the 56% that used to be a decade ago.”
Notably, “CIBIL is India’s first credit information company, established in August 2000, and is licensed by the Reserve Bank of India (RBI) to collect and maintain credit information on individuals and businesses. It plays a crucial role in the financial system by providing credit reports and credit scores to banks and financial institutions, helping them assess the creditworthiness of borrowers.”
