Publish Date: | Wed, 22 Jun 2022 12:31 PM (IST)
Attention debit card and credit card holders. The Reserve Bank of India (RBI) on Tuesday extended the deadline for implementation of new guidelines related to issuance of credit cards till October 1. Earlier RBI had set a deadline of July 1. RBI has also extended the deadline for many important changes. As per RBI’s update, if the customer does not activate the credit card within 30 days of issuance, banks or card issuers will have to collect a one-time password from the user to activate the card. And if the customer does not provide consent to activate the card, the issuer must close the card within seven working days at no additional cost.
The RBI said that card issuers should seek explicit consent before increasing the credit limit on credit cards. RBI noted, “Card-issuers shall ensure that the credit limit sanctioned and advised to the Cardholder is not breached at any time without obtaining explicit consent from the Cardholder. RBI said in a statement on June 21,” It has been decided to extend the time limit for implementation of the following provisions of the Master Direction up to October 01, 2022.
RBI further said that the terms and conditions for payment of credit card dues will be prescribed. The regulator said, “Unpaid fees/levies/taxes will not be capitalized for recovery/compounding of interest.
Posted By: Navodit Saktawat