Get ready to pay annual fee on credit cards

High rate of delinquencies

Mumbai: Apart from interest charges, now get ready to pay an annual fee on credit cards as well. Given the increasing rate of delinquencies on credit cards, banks may soon go back to the practice of issuing cards selectively like other financial products based on income documents and other parameters, say bank officials.

While this was the practice followed in the initial phase after credit cards were introduced in the country, in the last few years banks have been issuing credit cards indiscriminately to attract more customers. However, this will soon change and annual fees on credit cards in some form are expected to come back because of high cost in issuing and maintaining credit cards.

Text: Business Line

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