“Every scheduled bank (with the exception of payment banks, state co-operative banks and district central co-operative banks) and all non-banking financial companies (NBFCs) operating in India are subject to the provisions of the RBI relating to credit cards (credit cards and debit cards). – Issuance and Conduct) Directions, 2022,” the RBI notification said.
These rules will come into effect from 1 July 2022.
No delay in credit card billing details
As per RBI Master Guidance, card issuers should ensure that bills/details are made available through email expeditiously and customers have sufficient time to make payments – at least a fortnight – before charging interest .
RBI said, “In order to avoid repeated complaints about late challans, the card issuer may propose to issue bills and account details through internet/mobile banking with the informed authorization of the cardholder. To the card issuers A system should be put in place to ensure that the cardholder receives the billing details.”
Feedback 30 days from the date of filing the complaint
Within 30 days from the date of the complaint, the card issuer must respond to a cardholder who opposes the charge with an explanation and, if necessary, documentary support.
Option to choose credit card billing cycle
Not all credit card issuers follow a standard billing cycle. Cardholders will have a one-time option to customize the credit card’s billing cycle to allow flexibility in this area.
Refund amount will be adjusted to reflect the outstanding amount
Prior to the Payment Due Date, any credit amount for which the Cardholder has not paid as a result of a refund, failed, reversed, or similar transaction will be adjusted against “Payment Due” and notified to the Cardholder.
Credit card closure rules
In order to honor the requests for closure of the credit card, the customer should be informed of the closure immediately by the bank through email, SMS etc. Customers should be provided with various options, such as a helpline, dedicated email address, Interactive Voice Response (IVR), a link that is clearly available on the website, internet banking, a mobile application, or any other method, so that they to lock your card; They cannot insist on a certain path.
“Failure on the part of the card issuer to complete the closure process within seven working days will result in a penalty of Rs 500 per day payable to the customer, till the time the account is closed, provided that there is no There is no outstanding account,’ the RBI said.
Card cancellation within seven days
The credit card issuer is mandated by the Master Directive to comply with any credit card cancellation request within seven business days, provided the cardholder has paid all outstanding amounts.
It is to be noted that if a bank or NBFC does not cancel the account within seven working days, there will be a penalty of Rs. 500 each day till the account is closed, assuming there are no outstanding balances.
As per the master instruction, “The card issuer shall not insist on sending the closure request by post or any other means, which may result in delay in receipt of the request. Complete the closure process from the card-issuer side within seven working days.” Failure to do so will result in a fine of Rs.500 per day payable to the customer, unless the account is closed, provided there is no outstanding balance in the account.”
closing credit when unused
If the credit card is not used for more than a year, the bank can discontinue it.
A credit card holder will be notified and the cancellation process will be initiated if the card has not been used for more than a year. If the Cardholder does not respond within 30 days, the Card Issuer will deactivate the Card Account, provided the Cardholder has paid any outstanding balance.
Credit balance available for transfer to bank account
Once the account is cancelled, any credit balance remaining in the cardholder’s accounts will be transferred to their bank account. Card issuers must access the cardholder’s bank account information if they do not already have it.