A number of new regulations will come into force following the Reserve Bank of India’s guidelines on the issuance and use of credit and debit cards.
- The rules governing credit and debit cards, especially those relating to billing and closing credit cards, have been updated by the Reserve Bank of India.
- The central bank announced in a notification that these credit card regulations will come into effect on July 1.
- Issuer and operator guidelines for credit and debit cards have been developed by the central bank.
The rules governing credit and debit cards, especially those relating to billing and closing credit cards, have been updated by the Reserve Bank of India. The central bank announced in a notification that these credit card regulations will come into effect on July 1. Issuer and operator guidelines for credit and debit cards have been developed by the central bank.
List of credit card rules changed from July 1:
NO MORE FALSE INVOICES:
It is the responsibility of card issuers to prevent incorrect invoices from being issued and sent to cardholders. In the event of a debit being disputed by a cardholder, the card-issuing company must respond within 30 days of the cardholder’s complaint with an explanation and, where applicable, proof.
NO DELAY IN SENDING INVOICES:
The RBI said card issuers must ensure that there are no delays in the delivery, dispatch or emailing of invoices and statements and that customers have sufficient time to make payments before interest is charged. In accordance with RBI guidelines, card issuers must have a system in place to ensure that the cardholder receives the billing statement.
NON-CLOSURE OF CREDIT CARD TO ATTRACT HEAVY PENALTIES:
According to the RBI, credit card issuers must honor cardholder cancellation requests within seven working days. The RBI has stated in its rules that after a credit card is closed, the cardholder should be notified immediately of the closure by email, SMS, etc. If the card issuers fail to complete the closure process within seven working days, the customer shall be charged a penalty of Rs. there is no outstanding balance on the account.
NO UNSOLICITED CREDIT CARD:
In its new credit card restrictions, the RBI has strongly banned the issuance of unsolicited credit cards. If an unsolicited card is issued or an existing card is upgraded and activated without the recipient’s express consent and the recipient is charged, the card issuer must not only immediately reverse the charge, but also pay the recipient a penalty equal to twice the amount of the canceled charges.
The period of time during which a credit card bill is generated is known as the billing cycle. RBI regulations state that effective July 1, your credit card billing cycle will begin on the eleventh day of the previous month and end on the tenth day of the current month.
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