SBI had launched the credit card in Delhi last month. The card will be launched in other metros and 13 local head offices of SBI over the next few months.

Said SBI chairman M S Verma: "Credit cards were here before, but it is only now that the plastic card culture is picking up. SBI Cards plans to have a market share of 30 per cent by 2001 by which time the cardbase is expected to touch six million."

Speaking on the occasion of the card launch, GE Capital's chairman and chief executive officer Gary C Wendt said: "Our commitment to constantly deliver value-added world class products and services has made GE Capital one of the world's largest issuers of private label credit cards. We intend to leverage our operational experiencein this area for the benifit of Indian customers, as well as SBI customers."

Aimed at benefiting first-time credit card users, the SBI card is positioned as a utility card, which is convinient, safe, easy to use, widely accessible and extensively accepted, and will be made available to consumers across all segments, said Vishal Pandit of the card venture. "We will not canniblise the existing card base. We will grow the market," he said.

The threshold eligibilty limit for the SBI card is a gross annual income of Rs 60,000 (Rs 75,000 for the salaried). The joining fee has been pegged at Rs 250 with an annual fee of Rs 500 with an monthly interest of 1.5 per cent. A lost card protection facility will limit the card holders liability at Rs 1,000. One of the major attractions for SBI card holders is widespread acceptancy as a result of State Bank's vast branch network.

The SBI card will operate on the Visa network initially, but later on may lock into the MasterCard settlement systems as well. Said VisaInternational Asia Pacific's general manager and executive vice-president (south-East Asia and Greater China), James G Murray: "With 54 per cent of the world's payment cards commanding 59 per cent of the world's payment card volume, Visa, is a natural partner of choices for State Bank and bank's worldwide with its enormous brand equity and product portfolio."

SBI and GE Capital have set up two joint ventures in the country: a marketing company, SBI Cards & Payment Services Ltd to focus on the marketing and distribution of SBI Cards and GE Capital Business Processes Management Services Ltd to handle the technology and processing needs. SBI holds 60 per cent stake in the marketing company while GE Capital holds an identical stake in the processing outfit.