Phone bills can be automatically debited to the card-member's account, with no service charge. Card-members can also settle their MTNL phone bills at special payment outlets or at MTNL offices with no service charge levied.

According to Sanjay Rishi, vice president and country manager, American Express Travel Related Services, India and Area Countries, this co-branded credit card will offer unique features like the `cash back' facility that provides consumers a credit of 1.7 per cent on phone charges billed to the card each year, he added.

The card also offers "Phone Pe" services, under which the card-members can use the phone to pay for virtually any service such as electricity, school fees, medical bills, insurance premiums or to order a draft in favour of anyone including themselves.

Apart from this, all MTNL American Express credit card members will also get the Calling Line Identification (CLI) facility, which is now offered by most MTNL telephone exchange, free of charge, said Rajagopalan. In fact, MTNL and American Express are already working with equipment suppliers to offer co-branded Card-members special discounts on purchase of CLI enabled phones, said Rishi.

The card also offers other benefits which American Express extends to its other card members, including the balance transfer service, which allows the card members to transfer their outstanding balances from other credit cards to this co-branded card at an interest rate of 1.99 per cent, thereby enabling them to save up to 32 per cent in interest costs, added Rishi.

The card, which is globally valid, also insures the card members for Rs 5 lakh in case of an air-accident and Rs 2 lakh in case of a non-air accident.Co-branded cards are gaining increasing popularity around the world. For the partner companies, the co-branded card helps create customer loyalty, generates higher product usage, offers higher acquisition efficiencies, and enables better risk management.

MTNL listing on NYSE in a day or two
MTNL might finally be listed on the New York Stock Exchange (NYSE) by the end of June. According to S Sunderesan, director (finance), MTNL, last week NYSE had already cleared MTNL's application, which is now pending approval from SSE, the American equivalent of Sebi. "We expect them to give a clearance any day now and hope to be listed by June 30."