American Express Travel-Related Services vice-president and country manager Sanjay Rishi told reporters here that the 1.99 per cent monthly interest is significantly lower than the 2.95 per cent charged by other major credit card companies.

The card will also offer the balance transfer service which allows card members to transfer their outstanding balances from their other cards to the American Express credit card.

"An additional benefit is the low introductory interest rate of 1.45 per cent per month for the first six months, which will be available to the card members from the day the card is issued. This facility will enable card members to save up to 50 per cent on their interest charges," said Rishi.

Rishi said that there are 30 lakh credit card holders and their combined billing is estimated at Rs 5,000 crore. Nearly 90 percent of the card business is in the top eight cities.

He said nearly 50 lakh Indians are estimated to be in the upper middle class segment, according to the National Council of Applied Economic Research (NCAER). The number is likely to reach the one-crore mark in the next three to four years.

"These people have high disposable incomes but are prudent about spending. Their increasing aspirations are fuelled by availability of world class products. The increasing avenues of information are also fuelling demand for real value of a product," he added.

The new credit card will be offered to existing American Express card members holding charge cards as well as to all potential customers who are currently holding other credit cards and seeking to revolve credit, said Rishi.

In addition to the money-saving benefits, the new credit card will provide customers access to the American Express membership rewards programme which offers card members reward points every time they spend on the credit card or wheneverthey transfer balance of it, he added.

American Express is the world's largest travel-related services company with over 42 million cards worldwide and more than $17 billion in annualised travel sales from its owned offices.