The Apex bank Reserve bank of India reported that the outstanding amount of credit cards dropped down by 1.6% in 2102-2013. As per the RBI data the outstanding amount of credit card reduced to Rs 24,400 crore as on 27th December 2013 in 47 banks.
It seems that since the banks have started charging higher rates of interest on outstanding amount, the customers started paying the amount on time. chairman, Indian Bank, stated that banks are charging customer with an interest of 18% or more if they are not paying the amount on time. In order to save themselves from paying the higher interest rates customers have started paying on time. Otherwise in the year 2011-12 the outstanding amount was about 27.1%.