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ICICI Bank launches paperless instant credit cards for its customers

The bank's savings account holders can shop online immediately, receive plastic cards later

Ruchika Shah
Published: Aug 9, 2017 06:27:53 PM IST
Updated: Aug 9, 2017 06:29:40 PM IST

ICICI Bank launches paperless instant credit cards for its customers
Image: Shutterstock
 


ICICI Bank on Wednesday launched an instant credit card facility for its customers ahead of the festive season starting with Ganesh Chaturthi this month.
 
The facility will allow ICICI savings account holders to apply for a credit card through the Bank's website and receive a unique card number and Card Verification Value (CVV) number at the end of the process.
 
"It enables the savings account customers of the Bank to get a credit card instantly, in a completely digital and paperless manner," the Bank said in a statement on Wednesday. A physical plastic card would be delivered to the registered address within a few working days.
 
Many customers miss out on cashing in on festive season discounts, because it takes five-seven days for a physical card to arrive. With the new system, customers can shop online immediately, using the card number and CVV.
 
Commenting on the launch of the service, Anup Bagchi, Executive Director, ICICI Bank said: "There will be many interesting offers with online partners in various categories like shopping, travel and entertainment among others. We believe that this unique proposition, which is first of its kind in the industry, will empower our customers to instantly get the credit card online in a few steps and immediately start transacting on e-commerce sites to take advantage of the offers."
 
The process would take only a few minutes and is for pre-qualified ICICI Bank customers, who are ascribed a credit limit based on the Bank's relationship with the him/ her, income of the customer, loan exposure, repayment behaviour, and credit bureau ratings.
 
Depending on the aforementioned criteria, a credit limit of up to Rs 4 lakh is determined which can be extended at a later date (up to Rs 4 lakh) by the Bank just like may be for regular credit cards. "We chose whom to provide the offer and decide the card limit," the Bank said.
 
While the Bank will let its customers pick from eight different cards, there is a joining fee involved for seven of them. However, there will be no difference between the credit card annual fee for instant or regular cards. Even the interest on outstanding amount and the repayment tenure will remain the same on the instant credit card since it will be followed by the delivery of a physical card.
 
Currently, the Bank does not have plans of extending the same facility to reissuance of debit cards in the case of loss or theft as that requires certain checks and balances like a First Information Report (FIR) about the incident to be submitted to the Bank.
 
Is there a risk involved for the bank in providing a paperless instant credit card to its customers?

The Bank does not believes so, since it knows their customers, has their KYC (Know Your Customer) details, their spending habits, their credit bureau score, and takes a call based on this relationship.
 
This instant credit card facility is, however, different from the 'Instant Premium Credit Card against fixed deposits' which is offered to a customer creating a fixed deposit with the Bank.

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