HDFC Bank issues 4 lakh credit cards post-RBI ban

The bank will relaunch its Millennia, MoneyBack+ and Freedom cards, to which it has added a host of new features and benefits.

HDFC Bank has issued 4 lakh credit cards since the Reserve Bank of India (RBI) lifted a regulatory embargo on issuance of new cards by the lender in August. The largest private bank by assets plans to relaunch three credit card products, which will be available to customers in October, it said on Wednesday.

The bank will relaunch its Millennia, MoneyBack+ and Freedom cards, to which it has added a host of new features and benefits. Creating and co-creating new card products is part of the bank’s strategy to straddle every customer segment across the Indian market, said Parag Rao, group head – payments, consumer finance, digital banking & IT, HDFC Bank.

The bank also plans to partner with other entities to expand its customer base. Last week, HDFC Bank had announced a strategic tie-up with Paytm to deliver financial solutions to consumers and merchants across the country.

“We looked at our existing 15 million customers and how we could show them much more value. We are thankful to these customers for being with the bank and we would like to reward them by revamping and relaunching a couple of our products so that they get far more value than before,” Rao said.

The Freedom card is targeted at consumers who have just started earning and are used to making online purchases. Meant for first-time job-seekers, it will offer credit limits ranging between Rs 15,000 and Rs 50,000. The MoneyBack+ credit card is aimed at middle-class families seeking value on their everyday spends. The Millennia card is meant for the affluent, tech-savvy consumer in the age group of 25 to 40 years. The refashioned card will offer cashbacks on spends on shopping, dining, entertainment and travel.

“Our research over the last 15-20 years and a lot of customer feedback tells us that once you cross the first three-four years of credit card usage, your requirements become more fine-tuned and sharper. Some customers love reward points, some love cashbacks, discounts and deals,” Rao said. Over the next three to four quarters, HDFC Bank will gain back its market share in the number of cards in force, he added.