Taking moratorium may hit your credit card limit
Banks are lowering the limits on credit cards or blocking them for certain customers
Card issuers start reviewing their portfolios in times of economic stress more aggressively to cut down risk
Since the middle of April, scores of credit card customers—those of Axis Bank Ltd and Kotak Mahindra Bank Ltd being the most vocal among them—have taken to Twitter to complain to their banks about a sudden reduction in their credit card limit. Some cardholders have seen their credit limits reduced by up to 80% over the past week or so. Some said the limit was reduced because they opted for a moratorium on their cards, but others said they were affected even though they took a moratorium for their personal loans but paid their credit card dues on time. Then there were those who said their cards were blocked even though there were no outstanding dues against them. So what’s happening?