Why bank is devaluating cc ?

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bobby_123

Why bank is devaluating cc ? any reason behind this ?   I had seen now days many are using cc very heavily for all kind of purchases ... 

what is main reason behind devaluation ?

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Deal Lieutenant Deal Lieutenant
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People take loans & emi , buy iPhone, bikes and everything, also not to mention greed of extra cashback on higher purchase.

Later don't pay bill , keep banks waiting, penalty increases, still customer didn't pay, bank hire recovery agent, bank bear loss.

Legal hassle.

This is the sole & simple reason, cc will get devalued & good cc cards will become hard to get.

All chappris have destroyed everything.

Major bike companies like KTM, bearing loss & thinking of pulling out of India.

KTM offered good bikes at a decent price range, but since chappris started buying it , many people bought different bikes in same price range. As they don't want to be labelled chappri.

Same will happen with many brands in future.

Deal Cadet Deal Cadet
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exactly tea seller has told rbi to make upi as the only mode of payment

Deal Lieutenant Deal Lieutenant
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@denilsond4

Same tea seller giving Rupay offers and UPI based offers. Which u rr  looting & many others.

Anything on that?

Still better than Harvard Graduate, who promised gold coins as payment method to potato seller.

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Deal Subedar Deal Subedar
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feature abuse is the key reason.

Deal Cadet Deal Cadet
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not really


Feature abuse is not the key reason because.. "feature abuse (i would say future induce)" is the key LURE to get people taste credit and make them addicted like drug


So after getting addicted to credit people wont mind feature (people will forget feature because of drug), 

1) when they want that 45 days craving time of rotation and 

2) their craze of buying in EMI's which they can't buy normally without 6month salary upfront 


So its just interest rate got high and CC's company have high cost of money to give it for free for 45 days so they are reducing the rewards so that the actual people who need this 45 days credit will use CC's rather than reward hunters lol


Remember CC company needs people who get addicted to 45 days and EMI's and other things apart from this , they dont want you to get addicted to rewards xD they want sheep to slaughter not a sheep that eats too much of rewards

so high interest rate (cost of acquiring money) is the key reason

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Deal Lieutenant Deal Lieutenant
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People take loans & emi , buy iPhone, bikes and everything, also not to mention greed of extra cashback on higher purchase.

Later don't pay bill , keep banks waiting, penalty increases, still customer didn't pay, bank hire recovery agent, bank bear loss.

Legal hassle.

This is the sole & simple reason, cc will get devalued & good cc cards will become hard to get.

All chappris have destroyed everything.

Major bike companies like KTM, bearing loss & thinking of pulling out of India.

KTM offered good bikes at a decent price range, but since chappris started buying it , many people bought different bikes in same price range. As they don't want to be labelled chappri.

Same will happen with many brands in future.

Deal Cadet Deal Cadet
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What I have observed is that 8 out of 10 KTM bike owners in India are too young to have savings or income of their own to afford the KTM brand bike.

Also, 9 out of 10 KTM bikes on the road are not properly washed, kept clean, or maintained well. Broken mud-guards, scratch marks on the paint work, bent crash guards, loose-sounding chains, etc. I think this is because the KTM owners don't spend their own hard-earned money to buy it (maybe their parents are buying it for them), hence they don't take care of their bikes.

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Deal Cadet Deal Cadet
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I remember reading in a recent survey that, as of 2024, 80% of digital and online transactions in India are now using UPI.

Demotivating credit card rewards, might help increase the UPI share further. I think this is what the finance department wants and might have advised banks to reduce rewards for credit card usage.

Deal Cadet Deal Cadet
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exactly tea seller has told rbi to make upi as the only mode of payment

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Deal Cadet Deal Cadet
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Main reason is too much credit availability (even RBI stated credit is too much growing in India) but lack of good interest rates to support the growth of these huge volume of credit (you can see lot of people easily getting credit card for the past year few years after covid, even I who was not into credit cards got 7 lol in last 7 months when my credit history is 15years 3 months lol but i took first credit card in the recent 7months only - now with 7 credit cards in just 7 months) 


so profit is not much for CC companies when everyone gets credit cards and not using much lol and that too when people are getting MULTIPLE credit card just for offers (like me) .. so cc companies have to have their balance sheet healthy so cutting off rewards expenses for credit cards

So i would say competition among cc company trying to acquire more active client for their credit card product back fired lol.. its just a cycle now soon the cycle will revamp and again rewards starts to grow more. so wait and enjoy the cycle, new rewards will come (when interest rate gets down)

Side note: I am in the process to get my 8th credit card lol xDDDD fingers crossed

Commentator Commentator
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High cost of credit due to interest rate hike. Also number of revolvers might be going down. So credit card companies not making much money. therefore rewards should be lesser only.

Deal Newbie Deal Newbie
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cc devaluating because of money rotation and Abusers and there is a challenge to counter those abusers and Money Rotators in most of the cases.

Deal Cadet Deal Cadet
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Credit card is long for ages built around money rotation lol nothing new

So not the case
Finance Mentor Finance Mentor
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