IndusInd Bank has launched a new ODCC Linked Credit Card, aimed at businesses looking to use their existing Overdraft (OD) or Cash Credit (CC) limits for everyday business spending.
Unlike a conventional business credit card that comes with a separately sanctioned credit limit, the new card is linked directly to the business’s existing working capital facility. This allows eligible businesses to make card-based payments using their sanctioned OD/CC limit, offering greater flexibility in managing day-to-day expenses.
Features of ODCC Linked Credit Card
One of the key advantages of the ODCC Linked Credit Card is that businesses can leverage their existing sanctioned OD/CC facility instead of maintaining a separate credit card limit.
- Access to Existing OD/CC Limit: Use the sanctioned working capital facility for eligible card transactions.
- Expense Tracking: Consolidated transaction statements can help businesses monitor and reconcile expenses.
- Employee Cards: Add-on cards may be issued to authorized employees, subject to bank approval and applicable controls.
- Spend Controls: Businesses can implement spending controls and merchant category restrictions.
- Contactless Payments: The card supports contactless transactions.
- Real-Time Alerts: Transaction alerts and fraud monitoring provide additional security.
Who Can Apply?
The card is primarily targeted at businesses that already have an active Overdraft or Cash Credit facility with the bank. SMEs, mid-corporates, traders, distributors, manufacturers and service businesses could benefit from the product, particularly those with recurring operational expenses or seasonal working capital requirements.
Businesses will also need to meet the bank’s eligibility criteria, including satisfactory account eligibility and completion of the required KYC and documentation.
Bottom Line
Businesses first need to maintain an active OD/CC facility with IndusInd Bank. The ODCC Linked Credit Card can then be applied for through the bank’s Relationship Manager. Once approved, the card is linked to the sanctioned working capital facility, after which eligible purchases can be made through the card. Transactions can subsequently be monitored through statements and reporting tools.
The product could be particularly useful for businesses that want the payment convenience and expense management features of a commercial credit card without creating an entirely separate credit facility.