Credit Card Holders To Get One Time Option To Change Billing Cycle: RBI

Credit Card Holders To Get One Time Option To Change Billing Cycle: RBI

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Source : “Oneindia” via Dailyhunt

In the interest of customers, the RBI came out with credit card regulations recently. As part of the same, it suggested that customers should be given an opportunity -one time option to modify the billing cycle as per their desire.

Billing cycle or billing period as per the definition put by the apex bank is the regular length of time between closing dates of two consecutive bills raised by the card-issuer.

The same provision or ruling shall be granted with effect from July 1, 2022. On the credit card, the payment date generally falls

15-25 days after the billing period ends. For the transactions performed during the billing period, credit card holders enjoy interest free period from the start of the billing cycle to the payment due date. Payments made after the due date are subject to late fee and interest together with an impact on the credit score.

With the new ruling in place that allows you to change the billing period as a one-time option you may choose the billing cycle in a way that the payment due date falls as per your convenience and cash flows.

This will also be convenient for individuals with multiple credit cards. So, here again you can avail one time modification option to meet your end purpose.