remain at only around 10 per cent.
In the first half of this calendar, the growth in credit spend rose significantly over that registered in the previous year but it declined in July and August. If the year-on-year growth in the six-month period between January and June 2013 stood at 27 per cent, it slipped to only 12 per cent during July and August.
Bankers are, however, hopeful that in a month growth should be back as they may be able to go ahead with the zero per cent EMI scheme. They are implementing procedural changes that will bring their system in line with the transparency suggestions of RBI.
“We are already making structural changes to make it completely transparent to the customer and we expect, by November-end, the zero per cent EMI scheme should be back,” said an official with a bank.
In the zero percent EMI schemes, a processing fee was charged, which RBI says is a way to camouflage the interest in the loan. In the subvention scheme there is no charge and the interest to the card issuer is paid by the merchant or the manufacturer but RBI felt that banks were not being transparent to the consumer and so asked them to stop it.
credit card spending
2012 2013 YoY %
Jan 88,676 1,13,920 28.47
Feb 81,965 1,01,036 23.27
March 88,373 1,11,217 25.85
April 1,01,186 1,24,182 22.73
May 93,073 1,24,638 33.91
June 90,269 1,13,764 26.03
July 98,745 1,10,386 11.79
Aug 95,843 1,07,480 12.14