Coronavirus has worsened the economic condition of all the people of the country. If someone’s business is stalled, then someone’s salary is getting cut. At the same time, many banks are reducing the credit card limit of customers.
new Delhi. Coronavirus has worsened the economic condition of all the people of the country. If someone’s business is stalled, then someone’s salary is getting cut. At the same time, many banks are reducing the credit card limit of customers. According to a report in ET , an internal memo from Axis Bank stated that the credit limit of about two lakh customers has been reduced. This memo is seen by ET. Accordingly, this limit was reduced from 15 April. Some Axis Bank customers confirmed this. The credit limit for this group has been reduced by 30-90%.
90% reduction in credit limit
A customer of Axis Bank told ET that the credit limit on his Axis Bank Vistara card has been reduced from Rs five lakh to just Rs 50,000, while he has been paying the outstanding on time. When asked customer care, it was told that this happened due to technical disturbances and it will be rectified in a few days. Another customer said that his limit has been reduced from seven lakhs to one and a half lakh rupees.
Ambuj Chandna, President (Customer Assets) of Kotak Mahindra Bank, says that it is not as if any special action has been taken in the current situation. According to credit card expenses and repayment, we decide the credit limit of the customers and in some cases increase or decrease it.
Credit card dues increased a lot last month
. According to the RBI data, at the end of February, the credit card dues were at an all-time high of Rs 1.1 lakh crore. There were over 5.6 crore active credit cards in the country at the end of January. HDFC Bank has tightened the eligibility condition for personal loans and has also reduced the limit. Its limit has now been reduced to 70-80% of the annual salary of the applicant, whereas earlier it was 100%.
read this also: Do those investing in mutual funds schemes need to panic now? Banks are only giving loans to these retailers. Banks are also reducing loans and merchant enterprise overdrafts to retailers. In the internal memo of HDFC Bank, the branch managers have been directed that such loans should be given only to grocery stores, pharmacy and dairy till further orders. ET has seen this memo.
