RBI Card Norms: The Reserve Bank of India has decided to extend the deadline for some changes in the rules of debit and credit cards from July 1.
RBI Card Norms: The Reserve Bank of India (RBI) has given three months to banks and NBFCs to change some rules regarding debit and credit from July 1. According to these rules, from July 1, banks could activate their cards without the consent of the customers. Earlier, banks and NBFCs were to implement the Master Direction on ‘Issuance and Conduct Directions, 2022’ for issuance of credit cards and debit cards from July 1.
Deadline extended till October 1
RBI has issued a notification seeking demand from industry stakeholders, saying that the central bank has decided to extend the deadline for implementation of certain provisions of the Master Direction to October 1, 2022. The provisions for which it has been decided to extend the deadline have rules related to activating the credit card.
Rules regarding credit card
According to Master Direction, if a customer does not activate the credit card within 30 days from the date of issue, the card issuer will seek approval from the cardholder to activate it through an OTP (One Time Password). could.
If the card issuer does not get any approval from the cardholder, then this credit card should be canceled without any charges within the next seven working days.
Changes in these rules
Apart from this, the cardholder was also asked to ensure by July 1 that the credit limit already sanctioned is not violated without taking the consent of the cardholder. In this case also the deadline has been extended till October 1.
RBI has also given three months to implement the rules related to unpaid charges and compounding of interest.