Overdraft facility with the credit card from the current account is not a dream now. This has become the reality with the fierce competition in the Indian credit card market. The private major Standard Chartered Bank has launched a ‘smart credit gold overdraft’, which will enable its customers to overdraw on their current accounts using a card attached to the account. This will enable the card user to enjoy an increased level of prepaid liquidity.

The funds can be accessed by using the credit card at an ATM machine. The extra funds can be used at any merchant establishment like a credit card . The overdraft amount needs to be be repaid over a period of months as per the convenience of the customer. This overdraft is designed with the aim of giving the customers the unique experience of using many products rolled into one. It’s handy if the card user need cash and can repay it in the short term. The key features of the this smart credit gold overdraft card include convenient access to an open credit line, higher credit limits and reward points on frequent spends and fuel surcharge waiver benefits amongst others. The bank will charge an annual fee of Rs. 1,499 for the service. This premium service initially be launched in the six metros like Mumbai, Delhi, Kolkata, Chennai, Bangalore and Ahmedabad.

Other private sector banks are seriously thinking to follow the footprints of Standard Chartered Bank. The ICICI bank's new card is in the pipe line which will conglomerate overdraft, current accounts and credit cards simultaneously. The stiff competition in the card segment is paving the way for such type of borrower-friendly diversifications.