Banks made distance from tourism and transport sector, closed new credit cards, reduced the limit of old ones – News18

New Delhi. The country is again recovering from the second wave of the Coronavirus Pandemic (Coronavirus Effect On Tourism Sector). The central government has also recently announced an economic relief package. Even after this, the situation in the tourism and transportation sector is worse. Alam is that banks are not even issuing new credit cards to the people working in these sectors.
Dilip Thakur, who works as Tour and Travels Agents in Manali, Himachal Pradesh, said that he had started his own firm in the beginning of last year itself. Meanwhile, the lockdown was imposed. Business destroyed. Therefore, applied for a credit card in the bank for emergency purchases. After a year, the bank told that his profile has become negative. Hence credit card will not be issued. The same has happened with Mahendra Singh Raghuvanshi, the operator of Raghuvanshi Travels in Bhopal, Madhya Pradesh. He said that the work of travel has come to a standstill since last year. The increase in the price of diesel has done the right thing. Raghuvanshi filled the installments of the car on time but due to the corona virus, the entire savings got exhausted. When I applied for a loan in the bank, the application was not approved.
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If the government is doing such discrimination, then why should the banks be left behind?
Travel Agents Association of India (TAAI) Vice President Jai Bhatia says that many tour operators associated with him have complained about banks reducing credit card limits and not issuing new cards. A memorandum has also been submitted to the Central Government in this regard. Pradeep Lulla, president of the Travel Agents Federation of India, says that the government had not made any announcement for the travel industry in the first package of the self-reliant campaign. Now in the second economic relief package, a loan of Rs 1 lakh has been announced to 10700 tourist guides on government guarantee and only 904 tourist agencies have got a loan of up to Rs 10 lakh. There are more than 3,000 tour and travel agencies in the UFTAA (Universal Federation of Travel Agent Association). These have been abandoned. Apart from this, hotels, tour package agents, taxi owners and drivers etc. have also been left out. When the government itself is doing such discrimination, why should the banks lag behind?
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A general rule to check the profile of the person concerned before giving a loan
Ashwini Rana, Founder, Voice of Banking, says that it is a general rule in banks to see the profile of the person concerned before giving a loan. If the risk is high then the loan application is rejected. By the way, nowadays the loan or credit card limit is decided by looking at the CIBIL. But there has been a lot of impact from many sectors in the Corona period. Maybe that is why banks are scrutinizing the profiles of people in these sectors more closely. If banks are rejecting the application, then the customer has the option of NBFCs and Fintech companies. However, their interest rate is high.
Rs 2,300 crore fall in revenue of only three companies
Tour and travel operators provide services like air/bus ticketing, hotels/packages for both leisure and corporate travel in India and abroad. According to a report by Crisil, their revenue is about 11 thousand crores. Whereas, according to Jai Bhatia of TAAI, if all the agents, big or small, are included, then it works out to about 20 thousand crores. According to Crisil, only three companies saw a fall in revenue of Rs 2,300 crore in the last financial year. This was only 20% of the total revenue. Due to the nationwide lockdown and other restrictions, the number of visits has remained very low.

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