Dhanlaxmi Bank is countering recent moves in India by launching, not dropping, a credit card business by introducing platinum and gold cards on March 22, an official from the Thrissur-based bank tells PaymentsSource.
“These cards are targeted at the bank’s premium savings accounts customers,” he says. “However, that is not to say that first-time customers cannot apply for it.”
The bank is using a “Pay by Transaction” billing mode, according to the official. “Under this mode, instead of a monthly billing cycle, the interest-free credit period is considered for individual transactions from the day of purchase,” he says. “A customer thus enjoys a 45-day interest-free credit period on each purchase and does not need to time the purchase based on the billing cycle.”
The bank will offer 5% cash back on grocery purchases, a priority pass for lounges and a worldwide concierge service for all its credit card customers, the official adds.
Dhanlaxmi is the first Indian bank this year to enter the credit card business. Most of the country’s recent card news has been negative, with some issuers, such as ABN Amro, stopping the issuance of credit cards (
