Household HSBC Watch

Hongkong and Shanghai Banking Corporation (HSBC) seems to have turned a blind eye to the Reserve Bank of India’s (RBI) draft guidelines on credit cards. HSBC and retailer Trent Ltd have launched a co-branded card that offers 10 per cent discount on monthly grocery purchases. The private label credit card is being offered to customers of Trent’s hypermarket Star India Bazaar without seeking any income proof.

HSBC’s move to do away with the requirement of income proof, however, goes against the spirit of the RBI draft guidelines on credit cards that says banks must be responsible and issue cards only to those with independent financial means after completion of all know your customer (KYC) requirements.