Good move by IDFCF. This would certainly improve their credit card business. It appears to be a catchy incentive to low risk individuals to acquire an IDFC card and start using it. This is positive for shareholders.
Nobody plans in advance to pay interest on credit cards whether it is 34% or it be 9%. However a 9% card provides an option to delay just in case of unexpected short term cashflow problems. Bank obviously wants to attract low risk entities to apply for the 9% card. It would match individually applicable interest rates to their individual credit risk. For people who never default or have opted for automatic payment system, interest rate does not matter.
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