The reserve bank of India released a new set of guidelines for credit card issuers in India on April 21, 2022. These guidelines include new rules about credit card billing, closure of credit cards, and insurance claim settlements. 

The new Reserve bank of india rules and regulations will be implemented from July 1, 2022, and will be applicable to both public and private sector banks (excluding payment banks, state and district co-operative banks) and non-banking financial institutions. Now let’s have a closer look and see how the new credit card rbi rules are going to be beneficial for us.

Rule 1:

The first change is related to credit card due dates. RBI said that credit card companies should provide a one-time option to modify the statement date of credit cards as per their convenience. 

If you are a credit card user, you’re probably aware that different credit card companies feature different billing cycles, and those who have multiple credit cards often face difficulties in remembering the due dates. That’s why the reserve bank of india mentioned that every credit card user should have the opportunity to customize their credit card billing cycle.

Rule 2:

The next rule says that every credit card closure request should be processed within 7 working days. Otherwise, the credit card issuer will have to pay the customer Rs.500 per day of delay as a penalty. 

This rule only applies if there are no credit card dues on the account you want to close. If you want to know ​​how to get credit card closed? Then feel free to take a look at our faq page.

Rule 3:

The credit card issuers shall inform their customers about the risks of only paying minimum due on credit card bills. RBI also said that all the cons of making minimum due payments should be mentioned in the monthly credit card statements.

If you want to know, ‘what is credit card minimum payment due?’ and ‘how much should you pay on your credit card?’ then feel free to visit our faq page.

Rule 4:

Credit card companies should keep customer information confidential without their direct consent. During the consent process, the credit card issuers should also inform the customer about how and where each and every piece of information is going to be used.

It can be very helpful in preventing misuse of your credit card information and the spam calls and emails that you regularly get about low-cost loans, insurance, offers, etc.

Rule 5:

The rbi guidelines for credit card recovery say that credit card service providers or their agents should not invade the privacy of their customers, humiliate, or harass them (verbally or physically) for debt collection. 

The credit card debt collection process is often characterized by mistreatment, harassment, and humiliation by the recovery agents of credit card issuers. As per the credit card rules in India, these must be stopped or a penalty will be imposed on the company. 

Rule 6:

Most of the credit card companies in India do not mention the credit card APR (Annual Percentage Rate) for various situations like cash withdrawal, balance transfer, payment and non-payment of the minimum amount of credit card, etc.

As per the RBI, issuers must inform their customers about how to calculate the annual interest rate on credit cards? with clear and easy-to-understand examples. This will ensure that customers are well aware of the hidden credit card charges and they can make an informed decision. 

If you want to know how to use a credit card effectively? and ‘how to avoid credit card finance charges?’ you can visit our faq page.

Rule 7:

The application of this rule can simplify the credit card insurance claim process. In accordance with the Reserve bank of india governor Shaktikanta Das, credit card companies should ensure that all nominee information and other relevant information is provided to the insurance company so that, if you need to claim benefits from the policy, you will have minimal difficulties.

Most top credit card companies in India offer several insurance coverages (travel insurance, baggage insurance, accidental insurance, etc) with their cards, but the problem arises when you go to claim the benefits. This new rbi credit card regulation will hopefully solve the problems.

Rule 8:

It says that credit card providers in India can’t upgrade your credit card credit limit or replace your card with a higher variant without your consent.

These are the important Reserve bank of india guidelines that have been issued recently. The new regulation issued by the reserve bank of india is intended to give you a smooth credit card experience. Hidden charges, misuse of information, and delayed credit card services have always been a great concern of credit card users in india. Hopefully, those problems will be reduced with the proper implementation of the new credit card rules and regulations.  

Additionally, if you are looking for the best credit cards to have, please visit our top credit card pages. There you can find an extensive collection of the best credit cards available in India.

To read the RBI notification visit: RBI’s website