RBI gave big relief: Credit card holders will now be able to choose the billing cycle of the credit card as per their convenience. They will get a chance to change it only once. This new rule will come into effect from 1 July 2022.
RBI has given big relief to the credit card holders. Now they will be able to choose the billing cycle of the credit card as per their convenience. They will get a chance to change it only once. This new rule will come into effect from 1 July 2022. Till now, the billing cycle is also fixed by the bank according to the date on which the credit card is issued.
Earlier, the Reserve Bank of India (RBI) has prohibited banks from issuing credit cards or increasing the limit of existing cards or introducing other facilities without the approval of customers. Failure to comply with this will have to pay double the amount of the bill as fine to the companies concerned. The central bank said that the person in whose name the card is issued can make a complaint to the RBI Ombudsman. The Ombudsman will decide the amount of fine.
Strict action on intimidators
The central bank has also prohibited intimidation or harassment from card issuing entities or third parties acting as agents for collection of dues from customers. This guideline will come into effect from July 1, 2022.
Who will do credit card business
As per the guidelines, commercial banks with a net worth of Rs 100 crore can undertake credit card business independently or in tie-up with card issuing banks/Non-Banking Financial Companies (NBFCs). Regional Rural Banks are also permitted to issue credit cards in partnership with their sponsors or other banks. RBI has made it clear that NBFCs will not start credit card business without its approval.
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