New credit card rules: these rules will come into force on July 1, 2022

The Reserve Bank of India (RBI) has issued new criteria for issuing credit and debit cards via a notification on 21st April 2022. These include new restrictions regarding cancellation of credit cards, charging , etc.

“Every Scheduled Bank (except 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 Credit Card Provisions of the RBI (Credit Card and Debit Card – Issuance and Conduct) Instructions, 2022,” the RBI notification stated.

From July 1, 2022, this regulation will come into force.

No delay in credit card billing statement

According to the main RBI guidelines, card issuers should ensure that invoices/statements are provided promptly by email and that customers have sufficient time to pay – at least a fortnight – before interest accrues. are taken.

The RBI said: “In order to avoid repeated complaints about late billing, the card issuer may offer to issue bills and account statements via internet/mobile banking with the informed permission of the cardholder. map. Card issuers must have a system in place to ensure that the cardholder receives the billing statement.”

Response 30 days after filing a complaint

Within 30 days of the date of the complaint, the card issuer must respond to the holder who disputes a debit with an explanation and, where applicable, proof.

Ability to choose credit card billing cycle

Not all credit card issuers adhere to a standard billing cycle. Cardholders will have a unique option to customize the credit card billing cycle to allow flexibility in this area.

The refund amount will be adjusted to reflect the amount due

Prior to the payment due date, any credit amount resulting from refunds, failed, reversals or similar transactions for which the cardholder has not made payment will be adjusted to the “payment due” and communicated to the card holder.

Credit card closing rules

The customer must be immediately informed of the closure by e-mail, SMS, etc. by the bank so that it honors requests for closing a credit card. Customers should have a variety of options, such as a helpline, dedicated email address, Interactive Voice Response (IVR), clearly accessible link on the website, internet banking, mobile app or any other method to close their cards; they cannot insist on a certain route.

“Failure on the part of card issuers to complete the closing process within seven working days will result in a penalty of Rs 500 per day of delay payable to the customer, until the account is closed provided there is no has no outstanding balance in the account,” the RBI said.

Cancellation of the card within seven days

The credit card issuer is mandated by the primary directive to comply with any request to cancel a credit card within seven business days, provided the cardholder has paid all outstanding balances.

It should be noted that if a bank or NBFC does not cancel an account within seven working days, there will be a penalty of Rs. 500 per day until the account is closed, assuming it does not. there is no outstanding balance.

According to senior management, “The card issuer should not insist on sending a close request by mail or any other means that may cause a delay in receiving the request. Failure on the part of the card issuers to complete the closing process within seven working days will result in a penalty of Rs 500 per day of delay payable to the customer, until the account is closed provided there is no no balance on the account. ”

Closing of credit if not used

If a credit card is not used for more than a year, the bank may close it.

A credit card holder will be notified and the process to cancel the card will be initiated if it has not been used for over a year. The Card Issuer will deactivate the Card Account if the Cardholder does not respond within 30 days, provided the Cardholder has paid any outstanding balance.

Credit balance available to be transferred to a bank account

Once the account is cancelled, any remaining credit balance on cardholders’ accounts will be transferred to their bank account. Card issuers must have access to the cardholder’s bank account information if they do not already have it.

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