Money & Banking
Banks told to issue debit, credit cards with user’s photo

Banks have been advised by the RBI to also consider cards with PIN and signature laminated cards or any other advanced methods to prevent misuse of stolen cards

The Reserve Bank of India (RBI) had asked banks to consider issuing debit and credit cards with photographs of the cardholders to prevent misuse of stolen cards, the Lok Sabha was informed today.
In a written reply in the Lok Sabha, minister of state for finance Namo Narain Meena said, “Banks have been advised by the RBI that with a view to reducing the instances of misuse of lost/stolen cards, they may consider issuing cards with photographs of the cardholders or any other advanced methods that may evolve from time to time”.
As regards with credit cards, banks have been advised by the RBI to also consider cards with PIN and signature laminated cards or any other advanced methods, the minister said.




5 years ago



5 years ago

As all the tamper proof checks, viz., biometrics of ten fingers,both eyes' iris images are embedded in "Adhaar", why not carry this card with Debit card or Credit instead of insisting the Banks to reissue the said cards with photo.



In Reply to S BHASKARA NARAYANA 5 years ago

Thanks for you comment.
Kindly understand Aadhaar is not a card but simply a number that unless connected to the database cannot do authentication.
You may also want to read and . These two article discusses in detail the future of payment systems.

Ramesh Iyer

5 years ago

If RBI has indeed advised Banks to issue Debit &/ Credit Cards to customers to prevent fraud and misuse of stolen cards, it is certainly a welcome step. However, seems many Banks are not following this 'advise', as a private bank I have an a/c with refused to issue me a Debit & Credit Card with my photo, stating that they had 'discontinued' issuing such cards 'long back'.
I appreciate many of RBI's policies to protect investors' interests, such as -

1. Requirement of Verified-By-Visa or MasterCard SecureCode as 2nd level of protection for online transactions.
2. 'Advising' Banks to carry customer's photo on their Debit / Credit Card.

Though these are steps which would help in transactions within the country, card-holders remain exposed to frauds like skimming, and subsequent misuse of these at International locations (including websites).

Banks require your consent to raise fixed interest rate

State Bank of India (SBI) has been ordered by National Consumer Disputes Redressal Commission to refund the ‘excess’ interest charged to five parties who had fixed-rate home loans with the Bank, as it had not given them time to assess the impact of the rate increase.

Fixed-rate term loans usually contain a clause that entitles the bank to revise the interest rate every two years. This...

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Loans to industry continues to be weak

RBI released its sector-wise monthly loan data for January 2013 which reveals that non-collateralized loans (credit cards and personal loans) and vehicle loans were the best-performing segments

Industry loans remained weak (year-on-year) y-o-y in January 2013 YTD (year-to-date). The key growth drivers within the industry segment have been power, iron & steel, chemicals and roads. Retail loans and agri loans are the strongest—retail loans grew at 13.5% y-o-y and agri loans grew at 19.8% y-o-y in January. Within retail, non-collateralized loans (credit cards and personal loans) and vehicle loans were the best-performing segments. This is according to an analysis of key trends by Nomura Equity Research in credit trends based on the RBI’s (Reserve Bank of India) sector-wise monthly loan data for January 2013.


As of January 2013, aggregate non-food credit growth was 14.6% y-o-y with primary contributions from industry (15.2% y-o-y), agri (19.8% y-o-y) and retail (13.5% y-o-y).  As per the RBI's weekly statistical supplement, non-food credit as of 22 February 2013 was 16% y-o-y.


On an YTD basis (April 2012-January 2013), aggregate non-food credit growth was 7.9% over the base of March 2012 (compared with 10% in YTD FY12 and 14.6% in YTD FY11). The key contributions to YTD growth came from retail loans at 10.1% and industry at 8.3%. Agri loans grew at 6.8% while SME (small and medium enterprises) loans grew at 4.6%. Ex-infra industry growth was 4.9% during this period. 


Within the industry sector, y-o-y growth for key sub-sectors was 28.4% for power, 18.7% for iron & steel, 19.2% for engineering, 18.7% for roads, and 22% for chemicals. Loans to the telecom sector were flat y-o-y. 


One interesting observation to note is the declining loan share of medium & “small & micro” corporates within the industry segment. At their peak during April-August 2009, these corporates commanded a 12% and 17% loan share, respectively, within the industry segment, with large corporates having a 71% share. Comparatively, as of January 2013, the medium corporate share is now 9%; small & micro 13%; and large corporate share 78%. This share shift has been driven by the increasing loan share of the infrastructure segment which has increased from 24% in Jan 2009 to 34% in January 2013 (as a percentage of industry loans).


Over the last one year, medium corporates have lost the loan market share to the large corporates (11% share for medium corporates declining to 9%), while the small and micro corporates have held their ground. In Nomura’s view, this reflects the loan portfolio decisions of large banks like SBI which have been cutting back their medium corporate exposure over the last one year.


Within retail loans, credit card loans had the highest y-o-y growth at 24.3%, followed by vehicle loans at 21%, other personal loans at 16.3% and mortgages at 12.3% in January. Within mortgages, the bulk of the increase in January 2013 came from low-ticket mortgage loans which fulfil priority sector norms. 


In the services segment, loans to the retail trade had the highest y-o-y growth at 27.8% followed by loans to NBFC at 21.6%.


Nomura predicts that if we assume that the same quantum of loan growth for February 2013 and March 2013 as was achieved during February 2012 and March 2012 then the industry can expect to see loan growth of 13.8% for FY13F.


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