The provisions relating to credit cards under the RBI (Credit Card and Debit Card – Issues and Conduct) Directions 2022 will be applicable to scheduled banks and NBFCs.
New Delhi. The Reserve Bank of India (RBI) has issued Master Directions for issuing credit and debit cards. These directions have been issued on Thursday i.e. April 21, 2022. The provisions relating to credit cards under the RBI (Credit Card and Debit Card – Issues and Conduct) Directions 2022 will be applicable to every scheduled bank except Payments Banks, State Co-operative Banks and District Central Co-operative Banks. Apart from this, there are instructions for all Non-Banking Finance Companies (NBFCs) operating in India.
The directions will be effective from July 1, 2022.
According to a statement issued by the central bank, these directions cover the general and conduct rules relating to credit, debit and co-branded cards, which will be governed by Prudential applicable to credit, debit and co-branded cards. , Payment and Tech and Cyber Security related directions. These directions will be effective from 1st July 2022.
Highlights of Master Directions
>> The card issuing company may issue credit cards/charge cards for personal use along with add-on cards wherever required. Companies can also issue cards linked to overdraft accounts which are similar to personal loans. Apart from this, the company can issue business credit cards to business entities/individuals for business expenses. Add-on cards will be issued only to those individuals who are specifically identified by the main cardholder under the Personal and Business Credit Card categories.
>> Any request for closure of the Credit Card will be completed by the Credit Card Issuing Company within 7 working days, provided all due amounts are paid by the Cardholder. After the credit card is closed, the cardholder will be immediately notified about the closure through email, SMS etc.
>> The card issuing company will publicize the interest rates charged to different categories of customers through their website and through other means.
>> The card issuers shall ensure that there is no delay in sending the bill and there should be sufficient days (at least a fortnight) for the payment to be made before charging the interest to the customer. The card issuers shall ensure that incorrect bills are not generated and issued to the cardholders.
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