Rules governing credit and debit cards, particularly those pertaining to billing and credit card closure, have been updated by the Reserve Bank of India. The central bank announced in a notification that these credit card regulations would take effect on July 1. The issuer and operator guidelines for credit and debit cards have been developed by the central bank.
List of credit card rules changed from July 1:
NO MORE WRONG BILLS:
It is the responsibility of card issuers to prevent incorrect bills from being raised and sent to cardholders. In the event that a cardholder disputes a charge, the card-issuing company must respond within 30 days of the cardholder’s complaint with an explanation and, if necessary, documented proof.
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NO DELAY IN SENDING BILLS:
The RBI has stated that card issuers must make sure there is no delay in delivering, dispatching, or emailing bills and statements and that customers have enough time to make payments before interest is levied. In accordance with the RBI’s directives, card-issuers must set up a system to make sure the cardholder receives the billing statement.
NON-CLOSURE OF CREDIT CARD TO ATTRACT HEFTY PENALTY:
According to the RBI, credit card issuers must honour cancellation requests from cardholders within seven business days. The RBI has said in its rules that following the closure of a credit card, the cardholder must be immediately informed of the closure via email, SMS, etc. If the card issuers fail to complete the closure process within seven working days, the customer will be charged a penalty of Rs. 500 each day of delay up until the account is closed, provided there are no outstanding balances on the account.
NO UNSOLICITED CREDIT CARD:
In its new credit card restrictions, the RBI has strongly forbidden the issuance of unsolicited credit cards. If an unsolicited card is issued or an existing card is upgraded and activated without the recipient’s express consent and the recipient is billed for it, the card issuer must not only immediately reverse the charges but also pay the recipient a penalty that is equal to twice the amount of the reversed charges.
BILLING CYCLE:
The period of time during which a credit card bill is generated is known as the billing cycle. The RBI regulation states that as of July 1, your credit card billing cycle will start on the eleventh day of the previous month and end on the tenth day of the current month.
