After the rules are issued by RBI, customers can change the billing cycle/period of the credit card more than once as per their wish.
The Reserve Bank of India has given great relief to the customers by changing the rules related to credit cards. Credit card holders will now be able to change the billing cycle of the card more than once as per their convenience. Earlier banks and other financial institutions used to give the opportunity to do this only once, but RBI has asked to remove this limit. The Central Bank has recently implemented this rule.
Make changes like this
- For this, first of all the previous dues will have to be paid.
- After this, the credit card company will have to ask for changes in the billing cycle through phone or email.
- In some banks you can also make these changes through mobile app.
- This will be beneficial
Customers can decide the bill payment date as per their convenience and sufficient cash - You can maximize the interest free period in credit cards
- Can pay different credit cards on the same date
What is billing cycle?
A customer’s total credit card bill (statement) comes on the 6th of every month. In such a situation, its billing cycle will start from the 7th of that month and will end on the 6th of the next month. All credit card transactions made during this 30 day period will appear on the credit card statement. It contains information about all card payments, cash withdrawals, credit card bill payments. This billing period can range from 27 days to 31 days depending on the card type and credit card provider.
This is how customers will be affected
Till now only the credit card companies decided what would be the billing cycle of the credit card issued to the customer. Sometimes customers had to face a lot of problems due to this, but after the rules were issued by RBI, customers can change the billing cycle/period of the credit card more than once as per their wish.
Avoid paying minimum due
Banks also offer the option of making minimum payment instead of paying the entire balance of the bill. But what they don’t tell customers is that doing so not only charges interest on the outstanding amount in the current billing cycle, but will also void the interest-free period on all other transactions made in subsequent billing cycles. This means that all transactions made after the due date attract interest until the total outstanding amount is fully repaid. Experts say that to avoid this, it is best to pay the bill in full by the due date.
Bill payment date will also change
If a customer changes his billing cycle, his credit card bill payment due date will also change. This due date may be 15 to 20 days from the date of the statement. This means that the customer gets an interest free period of 45 to 50 days, which includes 30 days of the billing cycle and 15-20 days till the due date. There will be no additional charges for payment within this time limit.
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