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Prepaid Credit Card India

By: EconomyWatch Content Date: 15 February 2010

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The plastic money industry in India, including credit cards and debit cards, is growing steadily. While the demand for regular credit cards in India is high, with over 27 million cardholders in 2009, according to Business Standard, the usage of prepaid credit card India is still in its nascent stage. These cards are, however, increasingly being offered by several major banks, including ICICI, AXIS Bank, HDFC and SBI, to individuals as well as corporate clients.

Popular Prepaid Credit Card India Options

Prepaid credit cards are often wrongly confused with debit cards. In reality, a prepaid credit card aims to cater to a specific purpose. Prepaid credit cards in India are commonly offered in the following versions:

Travel Currency Prepaid Credit Card

This is a secure and convenient method of making payments while traveling outside the country, without hassling about money changers and converting travelers’ cheques. Travel currency cards, available on the MasterCard and Visa platforms, can be bought in different foreign currency demotions. Most banks have a minimum card recharge denomination. For instance, to have an AXIS Bank travel currency card in US dollars, a cardholder is required to make a minimum deposit of $250. The maximum currency load on a travel prepaid credit card is governed by the Reserve Bank of India.

Gift Prepaid Credit Card

Most gift prepaid credit cards in India are offered in collaboration with either Visa or MasterCard, thereby facilitating worldwide acceptance. These are an excellent gift alternative, empowering the receivers to utilize the card to make purchases according to their needs and preferences.

Some important features of a gift prepaid credit card are:

Available in multiple denominations, which may be as low as Rs.1,000 and as high as Rs.50,000.
Offered in multiple designs to suit different aesthetics.
Option to redeem unutilized balance for cash.

Annuity Prepaid Credit Card

These are typically co-branded credit cards, offered in collaboration with an insurance provider, such as Life Insurance Corporation. These cards help to receive annuities and pension directly from the provider without the hassle of standing in queues to receive a cheque. The amount debited to the card account can be used for purchases and payments, like a regular debit card.

Finally, prepaid credit cards in India include those intended exclusively for corporate clients, such as the corporate gift card for gifting employees, corporate payroll card for transferring salaries and corporate rewards card for offering bonuses and incentives to employees.

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