rbi credit card guidelines: Credit, debit card ‘new rules extended; Find out what changes will be made – rbi extends deadline to implement new guidelines for credit cards MIGMG News

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Mumbai: The Reserve Bank of India (RBI) on Tuesday extended the deadline for implementation of various provisions related to credit card issuance till October 1. Earlier, the deadline was July 1. In view of various statements received from industry stakeholders, it has been decided to extend the implementation till October 1, 2022, the RBI said in a statement.

Extended the deadline for these major changes
If the credit card is not activated within 30 days of the customer’s issuance, the bank or card issuer must obtain a one-time password from the user to activate the card. If the customer does not consent to activate the card, the issuer must close the card within seven working days at no extra cost.

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Card issuers must seek explicit consent before raising the credit limit on a credit card. “Card issuers should ensure that the credit limit is not violated at any time as approved and notified to the cardholder without the explicit consent of the cardholder,” the RBI said.

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The Reserve Bank of India (RBI) has said that the terms and conditions for payment of credit card payments along with the minimum amount will be fixed. This was to ensure that there would be no negative debt forgiveness. An example is included in the appendix. The regulator said, “Unpaid fees / levies / taxes will not be capitalized for interest / compounding.”

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Credit card rules will change
In early April, the Reserve Bank of India issued a set of guidelines that card issuers must follow when issuing debit or credit cards. The new rules will take effect on July 1. The Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directive, 2022, includes instructions on billing and credit card closure. The provisions will apply to every Scheduled Bank (excluding Payment Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India.

The regulator states that your credit card billing cycle will begin on the 11th of the previous month and will end on the 10th of the current month if your credit card statement is generated on the 10th of the month. Furthermore, there should be no delay in the credit card billing statement. According to the RBI, card issuers need to ensure that bills / statements are sent promptly, emailed and that the customer has sufficient days before charging interest, paid at least a fortnight.

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