The new rules for credit cards issued by RBI will be applicable from July 1. This includes rules regarding card issuance, billing and card closure. The new card rules will be applicable to banks (except payment banks, state co-operative banks and district central co-operative banks) and all non-banking finance companies (NBFCs) in India. The central bank has issued these rules under the Reserve Bank of India (Credit Card and Debit Card – Issues and Conduct) Directions, 2022. Its purpose is to save people in the country from exploitation by credit card companies.
Credit card will not be issued without application: Under the new rules, RBI has prohibited credit card companies from issuing new credit cards without application from the customer. Now no bank or NBFC will be able to upgrade the credit card without the consent of the customer. Along with this, if the company has issued a credit card without the customer’s approval and sent a bill in his name, then the company will not only have to withdraw his bill but will also have to pay a fine under the new rules.
Penalty will have to be paid if the credit card is not closed after the application: RBI was receiving frequent complaints from the credit card companies from the customers that even after the application for closure of the credit card, many companies are delaying in closing the credit card or Then refuses to close. Clear instructions have been given in this regard under the new rules. If the application for closure of the credit card is made by the customer, the company has to close the credit card within 7 days and the same should be communicated to the customer immediately through SMS and email.
Change in the billing cycle of credit cards: RBI has also changed the billing cycle of credit cards under the new rules. Now the credit card bill will be generated on the 11th of every month. Its billing date will be from 11th to 10th of every month.
Credit card company cannot send wrong bills: According to the new rules of RBI, if any company sends wrong bills to customers, then it is required to be resolved within 30 days of filing the complaint. Along with this, the credit card company will have to tell the reason for which this bill was sent to the customer.