From adjusting refunds against amount due to charges for disputes, here are the new credit card rules effective from July 1
Reserve Bank of Indiahas come out with a new set of guidelines aimed at protecting the interests of credit cardholders.
- The new guidelines make card issuers responsible for sending card statements on time, resolving disputes in a timely manner and more.
- Here are the key highlights of
RBI’s guidelines for credit cards.
AdvertisementCredit card users and issuers have some new rules to be aware of, as the Indian central bank, the Reserve Bank of India (RBI), has announced new changes that come into effect from July 1, 2022.
Recently, RBI came out with a new set of guidelines for credit and debit cards, directing credit card issuers to implement changes like no hidden charges and offering insurance on credit card frauds, theft, etc.
Now, the central bank has offered a new set of guidelines aimed specifically at solving some pain points of credit card users, like billing cycle related concerns, charges on disputed transactions and more.
These changes will come into effect from July 1, 2022, giving enough time to credit card users as well as issuers.
Here are all the new credit card changes:
No charges on disputed transactions until the dispute is resolved.
To enable flexibility in cases where card issuers do not follow a typical billing cycle, card holders will get a one-time option to change their credit card’s billing cycle. Note that this option is already available across some banks.
Refunds for failed or reversed transactions will now be adjusted towards the amount of payment due from the card holder.
Card holders will get replies for complaints raised regarding incorrect bills within 30 days.
Card issuers shall ensure that bills are generated and sent to card holders without any delay, and that the holder shall get at least 15 days’ time to make the payment.
Card issuers shall obtain permission from the card holder to increase credit limit beyond a set limit, in case of refunds or reversed transactions. The cut-off for this has been set at 1% of the original credit limit or INR 5,000, whichever is lower.
From no hidden charges to insurance on credit card frauds and lost cards, here are RBI's new guidelines for credit and debit cards
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