Contrary to the belief that credit cards cause debt, these can become much better payment modes than debit cards or cash if used responsibly. As the majority of the younger and more populous demographic of the country. Switch to SuperCard use as a useful payment tool, several individuals are learning the benefits and discipline that come with its entitlement. The RBL Bank credit card is one of many credit cards that offer customers many advantages. The Reserve Bank of India announced in June 2020 that it had created a 500 crore INR “Payment Infrastructure Development Fund”, or PIFD in short. It uses to bolster the growth of digital payment systems in rural areas of India and North East regions. An initial seed contribution amounting to 250 crore INR made to the PIFD. The other half, 250 crore INR, contributed by banks issuing credit cards and by network operators. With an impetus to use digital payments already underway in urban areas of the country, the RBI sought to compel populations in rural areas to accept plastic payment. The goal is to spread this mindset to every corner of India.
Steps by the Reserve Bank of India
As recently as January 2021, the Reserve Bank of India stated that it had made a “Digital Payments Index” (DPI) in order to track the extent of payments made through digital channels in India. This composite development is a significant one, given the substantial rise in digital transactions over the past year. Whether this is due to the Covid-19 pandemic or the result of a mindset change isn’t easy to ascertain, but people have sought solutions remotely, as they are prevented from human interaction. The Digital Payments Index has been developed with the base period beginning from March 2018. With that as the commencement period, the DPI for March 2019 clocks at 153.47, and for 2020, at 207.84. It is evident that there is a rise in the use of digital payments, and several are done through credit cards. From March 2021, the DPI of the Reserve Bank of India will appear on the RBI website. The reason for RBI to force digital payment activity is not just to promote credit card usage and eliminate cash transactions, but to promote transparency with efficiency in the country’s financial set-up.
Credit card rewards
According to financial analysts and experts, people don’t use credit cards just for the sake of convenience, though this may be the main factor. According to the latest data from the RBI, credit card transactions shot up in November 2020. With regard to both retail and wholesale purchases. Data includes all digital transactions, along with payments made through NEFT. But the RBI has emphasized a robust increase in transactions with credit cards compared to previous months in 2020. In the retail segment, consumers have been tempted with rewards. And discounts offered by brands, as well as credit card issuers themselves. For instance, when the iPhone 12 line launched in the latter part of 2020. HDFC announced instant cashback offers of 6,000 INR if phones purchased on EMI using their credit cards. On a flagship phone, this may well seem attractive to consumers. People use credit cards for the rewards and offers that they bring, especially at times of sales in festival periods (like Diwali). For instance, the RBL SuperCard reward points accumulate in your credit account as you make more purchases, and you can redeem these to buy desired products.
The RBL SuperCard and its benefits
The RBI encourages banks and credit card companies to provide credit. Card applicants with reward points that act as incentives to use their cards as much as possible. How a reward system works for the cardholder is obvious, but how it works for the credit card company needs to be noted. Every time a cardholder uses a credit card for a transaction, an “interchange” fee earns by the credit card company/bank. This is a kind of commission from the retail outlet at which the card swiped. It varies between 1% to 2.5% of the purchase value. The outlet may negotiate a lower fee with the credit card company if its sales are high. On average, for every 100INR – 200INR spent, the cardholder earns 1- 2 reward points.
The Bajaj Finserv RBL Bank SuperCard is a credit card that offers 5 great things if you apply for it.
- Loaded with fantastic features, the card offers you a convenient payment option, even on EMIs.
- This RBL Bank Credit Card, offered in tandem with Bajaj Finserv. Charges you low rates of interest, just 1.16% while applying for a personal loan on the cash limit compared to other credit cards.
- You get rewards and can save with every purchase you make.
- Avail benefits from partner stores, such as deals and discounts.
- Security analyst is a priority with this card, and features protect cardholders from cybercrime.