The Reserve Bank of India (RBI) has released the new guidelines for issuing debit and credit cards, effective from July 1, 2022. The new guidelines are regarding the billing, closure of credit cards, and other services related to cards.
The terms regarding credit cards under the RBI’s (Credit Card and Debit Card – Issuance and Conduct) directions, 2022 shall apply to every Schedules Bank and Non-Banking Financial company offering services in India. Payments Banks, District Central Cooperative Banks, and State Cooperative Banks are excluded.
The fresh guidelines are issued related billing cycle in credit cards which will begin on the 11th of the previous month and end on the 10th of the current month if a credit card statement is generated on the 10th of every month. As per the guidelines, there should be no delay in sending billing statements and customers must have a sufficient number of days to pay before interest is levied. If the customer raises concern over an incorrect bill, the card issuer must reply within 30 days from the date of complaint.
The transaction that the cardholder disputes as fraud will not be charged until the issue is not addressed. The card issuer shall give a one-time option to change the credit card’s billing cycle to their preference. Any credit amount originating from refund failed, reversed transactions shall be adjusted to the payment due. The card issuer must take the cardholder’s approval to increase the credit limit beyond a set limit.
