RBI extends deadline to implement new guidelines for credit cards till October 1
Beware of debit card and credit card holders. The Reserve Bank of India (RBI) on Tuesday extended the deadline to implement the new credit card guidelines till October 1. Earlier, the RBI had set a deadline of July 1. RBI has also extended the deadline for many important changes. As per RBI’s update, if the customer does not activate the credit card within 30 days of issuance, banks or card issuers will have to obtain a one-time password from the user to activate the card. And if the customer does not agree to activate the card, the issuer must close the card within seven working days at no additional cost.
Explicit consent is required before raising the limit
RBI said card issuers should take explicit consent before increasing the credit limit on credit cards. RBI noted, “Card issuers shall ensure that the credit limit sanctioned and advised to the Cardholder is not breached at any time without the explicit consent of the Cardholder. The provisions of Master Disha have been extended till October 01, 2022.”
Rules will be made for payment of arrears
RBI further said that the terms and conditions for payment of credit card arrears will be laid down. The regulator said, “Unpaid fees/levies/taxes for recovery/compounding of interest shall not be capitalised.