Credit cards

RBI extends deadline to implement new credit card guidelines to October 1

Bombay: Attention, debit and credit card holders. The Reserve Bank of India (RBI) on Tuesday extended the deadline for implementing new credit card issuance guidelines until October 1. Earlier, the RBI set the deadline as July 1. It has been decided to extend the deadline for the implementation of the following provisions of the Master Direction until October 1, 2022,” the RBI said in a statement on June 21.Also Read – RBI policy rate likely to cross 6% this fiscal year, report says

The RBI has also extended the deadline for several key changes. According to RBI updates, if the customer does not activate a credit card within 30 days of issuance, banks or card issuers must ask the user for a one-time password to activate. the map. And if the customer does not give consent for the activation of the card, the issuer must close the card within seven working days without additional costs. Also Read – RBI Raises Repo Rate by 50bps to 5.40%; Lend EMI to become more expensive

The RBI said card issuers must ask for explicit consent before increasing the credit limit on a credit card. “Card issuers must ensure that the credit limit as sanctioned and notified to the cardholder is not exceeded at any time without seeking the cardholder’s express consent,” RBI said. Also Read – HDFC Increases Retail Prime Rate Starting Tomorrow; Check how much your EMI home loans will increase

The RBI further said that the terms and conditions for payment of credit card dues will be stipulated. “Unpaid fees/levies/taxes will not be capitalized for billing/compounding interest,” the regulator said.

“The stipulated timetable for the implementation of the rest of the provisions of the Directorate remains unchanged,” added RBI.