New Delhi: Following the global established practice, ICICI Bank will block all the cards issued by it to a customer if he defaults on repaying dues of any one card. Multinational banks like Citibank and Standard Chartered Bank already follow this practice. A senior ICICI Bank official said that even today ICICI Bank blocks all the cards issued to a customer if he defaults on one card. However, to make things more transparent, the bank has included these latest guidelines in credit card statement issued to customers. Other banks are also likely to follow the suite to make things more transparent. The official said that the credit card default has become a big problem in countries like US and other developed economies. Indian banks must take measures to contain the non-performing assets on credit cards, which is over 15% of the total loan of at around Rs 50,000 crore extended on cards. ICICI Bank has informed its customers about the new guidelines, which will come into effect from October 5. As per the new terms, if a customer holds two or more cards from ICICi Bank and defaults in making payments in one of the cards, ‘‘ICICI Bank is authorised to block the credit limit as made available to the card member under all other ICICI Bank’s card accounts as well as withdraw such privileges/ benefits as made available under all such card accounts, till such time the defaulting card account is regularised by the card member.” The statement said ICICI Bank shall not be required to provide any additional notice to block all cards. To make the recovery process more effective, banks recently empowered themselves with a tool that allows them to ask employers to deduct the outstanding amount from an employee’s salary.
* Making It Transparent *Indian banks must take steps to contain NPAs on cards, which is over 15% of total loan of at around Rs 50,000 crore offered on cards, says an official New guidelines say ICICI Bank will not be required to provide any additional notice to block all cards, in case of default A Bank can also recover the credit card dues from your account in the same bank, without informing you. The bank need not seek your consent while debiting your account against the payment for card --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
