RBI's new guidelines for credit cards: All you need to know

Here we list some key changes in Reserve Bank of India's (RBI) new credit card rules that come into effect from July 1, 2022.

RBI's new guidelines for credit cards: All you need to know

No charges will be levied on disputed transactions such as scams and fraud by the cardholder until the disagreement is proven. Credit: Getty Images

Card-issuers do not follow a standard billing cycle for all credit cards issued. In order to provide flexibility, cardholders shall be provided with a one-time option to modify the billing cycle of the credit card as per their convenience. Credit: Getty Images

Cardholders should get the implications of paying only ‘the minimum amount due’ from the card issuers. Credit: Reuters Photo

Closure request raised by the applicant needs to be closed within SEVEN working days (Subject to payment of all dues by the cardholder). A delay in closure within seven days will result in a penalty of Rs. 500 per day to the customer. Credit: Getty Images

The card issuers need to ensure that the loans offered through the credit cards are in compliance with RBI instructions on loans. Credit: Getty Images

Card-issuers shall quote Annualized Percentage Rates (APR) on credit cards for different situations such as retail purchase balance, balance transfer, cash advances, non-payment of the minimum amount due and etc. The method of calculation of APR shall be given with clear examples for better understanding. Credit: Getty Images

Card issuers shall not unilaterally upgrade credit cards and enhance credit limits. A mandatory consent is requested from the cardholder whenever there are any changes in terms and conditions. Credit: Reuters Photo

Written consent of the applicant will be now required before the issuance of a credit card. Credit: Getty Images

Card issuers/their agents shall not resort to intimidation or harassment of any kind, either verbal or physical, against any cardholder in their debt collection including any act of public humility, making threatening and anonymous calls or making a false and misleading representation. Credit: Getty Images