Law for credit card payment soon, says FM

The government is planning to bring a new law to regulate credit card payment. While replying to a question regarding credit card problems, Finance Minister P Chidambaram told the Lok Sabha that such a move is in the offing.

In his question, CPI(M) MP Rupchand Pal had stated that ATM transactions and debit card services are directly given by banks.

But in the case of credit cards, there are other agencies involved. Pal wanted to know why there are no concrete steps to oversee these agencies and credit card transactions.

In reply, Chidambaram told the House, "Credit cards involve agencies like Visa or MasterCard. They are co-branded with banks to issue credit cards. We intend to bring a bill to regulate payment systems."

Later Rupchand Pal told Business standard, "There are lot of gray areas in these new-age financial transactions like credit cards, e-banking, telephone banking, etc. These operations in India are not properly monitored. There is a need of a new law but if Finance Minister wants to bypass the Reserve Bank of India and create a separate mechanism then it won't be welcomed".

In 2006 47 forgery cases related to credit cards were reported. Chidambaram said, "Action is taken in each case. But involvement of bank employees are not yet found. Misuse has been found by service providers and shops."