Credit card holders will get a unique option to change the billing cycle: RBI
In the interest of customers, the RBI has recently issued credit card regulations. Along the same lines, he suggested that customers have the option – just once – to change the billing cycle to their liking. The billing cycle or billing period as defined by the umbrella bank is the regular length of time between the closing dates of two consecutive bills issued by the card issuer.
The same provision or decision is pronounced as of July 1, 2022.
On the credit card, the payment date usually falls 15 to 25 days after the end of the billing period.
For transactions made during the billing period, credit cardholders enjoy an interest-free period from the start of the billing cycle until the payment due date. Payments made after the due date are subject to late fees and interest, as well as credit rating impact.
With the new decision in place that allows you to change the billing period as a single option, you can choose the billing cycle so that the payment due date falls as per your convenience and cash flow .
This will also be convenient for people with multiple credit cards. So again, you can benefit from a unique modification option to achieve your end goal.
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Article first published: Thursday, May 5, 2022, 9:40 p.m. [IST]