According to the bank chairman and managing director TR Sridharan, the credit card division has formed a three-year plan up to 2001 and aims for a member base of one million by then. The bank also plans to change the accounting system for its credit card operations within the coming months.

Cancards will now offer a householders' insurance policy under the Cancomfort Scheme, which has been specially designed for Cancard by New India Assurance Company. Through this scheme, New India Assurance makes available personal accident and mediclaim policies to Cancard holders at attractive concessional rates. The householders' insurance cover would benefit householders through substantial concessions in premium rates.

To keep pace with facilities being offered by other credit cards, especially those issued by multinational banks, Cancard Proprietory Cards, Cancard Mastercards and all cards issued by Cancard's nine affiliate banks will now become ATM cards. Cancard Visa already offers this facility, which is available at the 12 networked ATMs of Canara Bank in Bangalore and Delhi.

Canara Bank is also working out an arrangement to jointly share its ATM network with that of a few other banks in coordination with Visa and Mastercard International.

As part of its three-year plan, Canara Bank, along with State Bank of India, has commissioned research on the concept of smart card at the Indian Institute of Technology, Mumbai. The bank will also opt for the debit card once the VSAT linkage is available to banking operations in the country and more interconnectivity is achieved between cities.

Cancard recorded a total business turnover of Rs 260 crore for 1997-98 and has set a target of Rs 450 crore for 1998-99, thus planning a growth of 73 per cent owing to the new features introduced. At present, it has a card base of 1.75 lakh compared with 1.32 lakh during the previous fiscal.

Cancard Visa has in its fold nine banks of which Corporation Bank, Indian Overseas Bank, Laxmi Vilas Bank, Karur Vysya Bank, Saraswat Co-operative Bank, South Indian Bank and Nedungadi Bank will continue with the arrangement. Though Syndicate Bank and Dena Bank are still in its fold, the former is planning to withdraw from the credit card business while Dena Bank is planning to launch its own credit card in association with Visa. Union Bank already withdrew from the arrangement last year and has joined a similar arrangement with the Bank of India for the IndiaCard.