Essay on “Plastic Money” Complete Essay for Class 10, Class 12 and Graduation and other classes.

Plastic Money

At present there are three million cards in use with estimated annual billing, Rs. 5000 crore. No one can deny the importance and advantages of credit cards. Thus we see that The Age of Plastic Money has finally come to India. The credit card has become a matter of status. This system is being popular day by day.

There are various categories of credit cards. The category we are assigned,  depends on our annual income and frequency of usage. Generally it is seen – the more exclusive our card category, the higher is the value of services offered. Annex Gold Card holders are offered privileges that range from the highest insurance cover to no preset spending limit. Special corporate cards for frequent travelers and other categories are also available.

According to city Bank, credit card dues can be paid in full or parts. No interest charge is there if dues are paid in full. If dues are paid in parts then the customer is charged interest just like any bank overdraft facility. Banks have decided to take it upon themselves to educate the consumer with regard to card usage. City bank is a pioneer in this field. We should also know the difference between a charge card and a credit card. As regards a charge card we have to pay complete payment every month while in credit card we have the option of clearing part of our bills every month.

A credit card is a source of any time money (ATM). We can use credit card when our bank is closed or on strike. Through  cards we can have the facilities of gifts and insurance. Most credit card companies or Banks allow us a 45 day credit period.

The next thing is the annual fees of the card. This amount is generally from Rs. 700 to Rs. 1000 per year. There are various attractive schemes or offer.

Acceptability is another factor. Most credit cards are accepted widely all over India and Nepal and now, with Standard Chartered’s global credit card, the world. An important aspect that often goes unnoticed is the insurance cover. Most offer complementary life insurance, security covers, baggage loss and more. For instance city bank has been introduced household insurance upto Rs. One lakh for new subscribers.

One of the most important parameters is the loss liability if we lose the card. Most companies have a zero liability programme if we report the loss immediately to the card company and furnish them with a F.I.R American Express the liability is fixed at Rs. 1000, even if we do not report the loss. Once we do so, it comes down to zero. It is necessary to make sure we get facts and rights before taking the responsibility of plastic piece card.