RBI has extended the timing of certain provisions of the Credit Card and Debit Card Master Directive – Issuing and Conduct Instructions, 2022 until October 1, 2022. Here is what credit card and debit cardholders flow need to know.
The Reserve Bank of India (RBI) has extended the timing of certain Provisions of Principal Direction on Credit and Debit Cards – Issuance and Conduct Instructions, 2022. The information was provided by RBI on Tuesday, June 21, 2022 in a notice. Banks and NBFCs issuing credit and debit cards have another three months (until October 1, 2022) to comply with certain standards, including card activation without customer consent, non-capitalization of fees /unpaid levies/taxes for invoicing/composition of interest, among others.
“In light of the various representations received from industry stakeholders, it has been decided to extend the timeframe for implementing the following provisions of the Principal Instruction until October 1, 2022,” RBI said in the notification. It should be noted that the stipulated timetable for the implementation of the rest of the provisions of the General Directorate remains unchanged.
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The provisions of the Master Direction which has been extended until October 1, 2022 are:
1. Paragraph 6(a)(vi) – Card issuers must ask the cardholder for one-time password (OTP)-based consent to activate a credit card, if the credit card has not been activated by the customer for more than 30 days from the date of issue. If no consent is received for card activation, card issuers must close the credit card account at no cost to the customer within seven business days from the date of the customer’s confirmation request.
2. Paragraph 6(b)(v) – Card Issuers shall ensure that the credit limit as approved and notified to the Cardholder is not exceeded at any time without requesting the Cardholder’s express consent. map.
3. Paragraph 9(b)(ii) – No capitalization of unpaid charges/levies/taxes to charge/compound interest.
According to the Master Direction, card issuers must obtain one-time password (OTP)-based consent from the cardholder to activate a credit card, if the credit card has not been activated by the customer for more than 30 days from the date of issue.