Credit Card new rules to be imposed from July 1: Reports

The Reserve Bank of India (RBI) released new guidelines for credit and debit card issuing and operations. The Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022, are set to go into effect on July 1, 2022, according to reports.

These credit card directives apply to all scheduled banks (excluding payments banks, state co-operative banks, and district central co-operative banks) and non-banking financial enterprises (NBFCs) operating in India.

If the credit card account is not terminated by a certain date, the card issuer will be compelled to pay a fine to the cardholder, according to the instructions.

What You Should Know About Credit Card Termination:

1) The RBI has stipulated that any request to terminate a credit card be executed within seven working days by the credit card issuer, subject to the cardholder paying all outstanding bills.

2) After contacting the cardholder, if a credit card has not been used for more than one year, the process of closing the card will commence.

3) Keep in mind that the cardholder must be notified of the credit card closure via email, SMS, or other means as soon as possible.

4) Customers must be able to make requests for credit card account cancellation through a variety of channels provided by the credit card issuer.

5) Helpline, dedicated e-mail-id, Interactive Voice Response (IVR), widely accessible link on the website, internet banking, mobile app, or any other form are some of these channels.

6) The card-issuer must not rely on sending a closing request by mail or any other method that could cause the request to be delayed.

7) If the card issuer fails to deliver the credit card closure within seven working days, the consumer should be charged a penalty of Rs500 each day of delay until the account is closed, assuming no outstanding charges.