PERCEPTION TOWARDS CREDIT CARDS IN INDIA A STUDY TO UNDERSTAND THE FACTORS AFFECTING THE PURCHASE OF CREDIT CARDS

Abstract

A credit card is a little plastic payment card that is given out to customers. It enables its holder to make purchases of goods and services on the promise that they will be paid for. The card's provider establishes an account which is revolving (Revolving account) and offers the cardholder (or user) a line of credit from which they can borrow money to pay a merchant or receive a cash advance. Indian banks are currently giving credit cards to prospective consumers in a flood. International banks with operations in India have also jumped on board, enticing devoted credit card customers with aggressive advertising and supposedly competitive incentive programmes. The four primary components of a bank's credit card revenue are the yearly fee, interchange fee, revolving fee (interest on revolving credit), and additional fees. According to credit card providers, the Indian credit card market is expanding at a rate of between 20 to 25 percent yearly. In July 2022, there were 78 million credit cards in use. Also, in May 2022, the total amount spent on credit cards rose to INR 1.13 lakh crore, a record high. The COVID-19 pandemic caused the growth trajectory to drop during FY 2020–21, when credit card spending climbed only significantly by 9%. This is despite the significant total increase in credit card spending. Also, the Reserve Bank of India (RBI) took a few actions that prohibited some of the biggest credit card providers from issuing new cards in India. A drive towards a cashless economy and the promotion of digital transactions was made using credit cards. In the case of India, is it possible? India is a developing country, and many regions still need to be developed. According to this perspective, the goal of this research work is to determine how individuals feel about digital payments in general and credit card payments in particular. The study included 114 respondents from India as its sample. In order to make wise judgements, policymakers and the government will benefit from this research.