Checkout Key Highlights of RBI’s New User Friendly Guidelines for Credit and Debit Cards (April 2022)

Now, Credit and Debit Card Holders will have a lot to cheer about with RBI’s New User Friendly Guidelines. Check all the key info inside.

by FighterMan Updated: 22 Apr, 2022, 15:23 IST
2 1311

The RBI announced new rules regarding Issuance and Conduct Directions of Credit and Debit Cards yesterday i.e. 21st April 2022. As per these, card issuers such as banks, third-party apps (OneCard, PostPe, Dhani, Simpl, LazyPay, etc), and other financial service providers must follow these rules or are liable to a penalty.

These new rules must come into effect by 1st July 2022 as RBI has set this deadline for card issuers. We have highlighted some of the Key Guidelines which will be useful to card holders.

RBI’s New Guidelines for Credit and Debit Cards (April 2022)

Credit/Debit Card Closing
  • Your Credit Card Closing request must be honored within 7 working days provided there are no outstanding payments on the card. If not then you will be paid ₹500/day as penalty. For Debit Cards there is no penalty.

  • Card Issuers should have multiple channels for Credit/Debit Card Closing requests such as IVR, Email, Helpline, Mobile App, website, etc. They cannot insist on sending a closure request via post/courier (HDFC has this).


Automatic Closure of Unused Cards

If a card has not been used for more than a year, it shall be closed after intimating the cardholder, within a period of 30 days post intimation. There are more reasons to use it with the latest Credit Card offers!

Transfer of Credit Balance to Bank A/C

After the closure of a credit card, any credit balance available on the card must be transferred to the card holder's bank account. Here are some Bank offers for you worth a checkout!

Billing Cycle Modification

Now, you will get a one-time option to modify the billing cycle/bill date as per your convenience. Currently, some banks do offer this option.

Refunds & Payments

A refund processed before the due date must be considered as a payment and the outstanding amount to be adjusted accordingly and notified. This is definitely worth it as each bank has its own set of rules for Refunds & Payments.

Spam

You will not get unsolicited offers for loans or other credit facilities without your explicit consent. This rule might also include soliciting for products such as insurance.

You can also go through RBI’s official Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 document for all the details. What do you think of these new rules? Please do share below.

2 Comments  |  
2 Dimers
  • Sort By
Deal Newbie Deal Newbie

Nice rules especially 1st one.

Deal Newbie Deal Newbie

Yes, must-have rules to protect credit card customers.

replyuser
Click here to reply
Reply