Summary |
The New Economic Policy introduced by the Government of India in 1991 has brought about a sea-change in the Financial Sector in the country. Several developments, which were, at one time, considered unthinkable, took place in India in the financial as well as other sectors as a consequence of the New Economic Policy of 1991. The birth of New Generation Private Sector Banks, step by step opening of the country’s economy, a more liberal exchange control regime, easier access for the private sector to external commercial borrowings and a more benign approach to Foreign Investment in India are some example. These developments were accompanied by the advent of new Financial Products & Services.
Though Credit Card, as a financial product, has been in existence in the country since the 80’s, it was only after the introduction of the New Economic Policy of 1991 that credit cards literally took wings and became well known to a large section of the Indian society as a payment mechanism. Till then, it was considered as something meant only for the elite. The growth of the cards industry during the last two decades has been so substantial that cards are today accepted as a payment mechanism even in remote corners of the country of the number of cardholders and card users has grown from a few prior to 1991 to several crores in 2009.
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