The demonetisation has led to behavioural change among urban Indians, and digital transactions have become a regular method of financial activities post currency ban. 


One of the popular methods of cashless transaction is the use of credit card, and the present situation is pushing people to credit card debts which might soon become a big problem for many. 


The credit card is one of the earliest and popular form of plastic money in India and since every bank is too keen to offer credit cards with some irresistible initial offers and deals many individuals ended up with multiple cards. Since currency ban has led to cash crunch situation, people are using their credit cards for making payments and purchases including big purchases. 


The indefinite limitation on cash withdrawal might further encourage the middle-class Indians to be dependent on credit card which seems the easy way to go cashless but with surchages, fines, penalties, delay charges and many other charges do make credit card payments a burden later than a convenience. 


For understanding the gravity of this situation, here is a fact, a credit card holder has to pay 30% a year without any default charges which is a good number to make anyone reconsider their purchases. 


For any big purchases, EMIs seems like the best option which definitely is favourable for banks but not for the individual card holders who have to pay additional charges for their big purchase. 


The credit card holders are made to feel that anything is within reach, and that makes one pile on more and more debts that might turn out to be a huge amount of debt. And, if the credit card debt remains unpaid, financial activity through banks may be hampered due to endless policies of every individual bank. 


Also, banks have a stricter policy and hostile means of addressing the repayment of credit card debts which definitely needs some sort of governmental advisory or RBI intervention. 


In short, the dependency on credit card due to currency ban might soon see many people struggling with a massive amount of debt that can be incurred in a very less span of time.