The Indian government plans to roll out a slew of new credit cards by the end of the year, including a card offering cash back for purchases of more than Rs1,000.
The National Credit Card Corporation of India (NCCI) is aiming to provide more than 15 million new credit card users by the year-end, with most of the cards being of higher denomination, said a senior government official, who declined to be named.
The government plans on issuing cash back cards for purchases between Rs1 and Rs5,000, with the highest-value cards offering cash rewards ranging from 20 per cent to 40 per cent.
The card has already been introduced to merchants in New Delhi and Mumbai.
The National Credit Union Act, which has been in force for nearly three decades, requires banks to issue cards in denominations up to Rs500 and offers a cash-back guarantee of at least 20 per for every Rs1 spent.
The cards, which are expected to be introduced in India’s five biggest cities by the middle of next year, are expected help boost the country’s credit card usage and the government’s efforts to bring down the countrys high credit card penetration.
The credit cards will also be available at a discount.