Mumbai: Credit card usage in India is witnessing record growth. However, the Reserve Bank has noticed that various financial institutions are encouraging the use of credit cards designed for transactions between users and merchants for other purposes. In this situation, it is indicated that some restrictions on the use of the card are being considered.
Some credit cards now also facilitate person-to-person money transfers, such as transferring house rent and paying tuition fees. If earlier such services were provided by charging a fee, now organizations are encouraging such transactions by waiving the fee and instead offering reward payments.
However, it is known that the Reserve Bank of India believes that this type of money transfer is against the basic principles of credit card usage. It is in this situation that it is thought to bring a regulation that credit cards should not be used for money transfer between individuals.
