The Reserve Bank of India has amended rules regarding credit and debit cards, including those relating to closure of credit cards and billing. These rules are going to come into effect from July `1, the central bank has said in a notification. The central bank has come up with master directions on issuance and operation of credit and debit cards. The provisions relating to this under the Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022, will apply to Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India.
Here are the credit card rules that will come into effect from July 1
No Unsolicited Credit Card: The RBI has strictly prohibited the issue of unsolicited credit cards in its new credit card rules. “In case, an unsolicited card is issued/existing card upgraded and activated without the explicit consent of the recipient and the latter is billed for the same, the card-issuer shall not only reverse the charges forthwith, but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed,” it said.
Billing Cycle: A billing cycle of a credit card is defined as the time frame in which a credit card bill is generated. From July 1, your credit card billing cycle will begin on the 11th day of the previous month and end on the 10th day of the current month, the RBI guideline has mentioned.
No Delay in Sending Bills: “Card-issuers shall ensure that there is no delay in sending/dispatching/emailing bills/statements and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged,” the RBI has said. Card-issuers shall put in place a mechanism to ensure that the cardholder is in receipt of the billing statement as per the orders of the RBI.
No More Wrong Bills: Card-issuers will have to ensure that wrong bills are not raised and issued to cardholders. “In case, a cardholder protests any bill, the card-issuer shall provide explanation and, wherever applicable, documentary evidence shall be provided to the cardholder within a maximum period of 30 days from the date of complaint,” said the order.
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Source: News18