The provisions relating to credit cards under the RBI (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022 shall apply to every Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Cooperative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India. These rules will take effect from July 1, 2022.
Here are some of the points regarding credit card billing.
Billing cycle in credit card
A billing cycle is the time frame in which a credit card bill is generated. Your billing cycle will begin on the 11th of the previous month and end on the 10th of the current month if your credit card statement is generated on the 10th of every month.
No delay in billing statement
Card issuers must ensure that bills/statements are sent, emailed promptly, and that the consumer has a sufficient number of days, at least one fortnight to pay before interest is charged, according to the RBI master direction.
The RBI said, “In order to avoid repeated complaints about late invoicing, the card issuer may propose issuing bills and account statements via internet/mobile banking with the cardholder’s informed authorization. Card issuers must implement a system to ensure that the cardholder receives the billing statement.”
Cardholder to get reply within 30 days from the date of complaint
Card issuers must verify that no incorrect bills are generated and distributed to cardholders. If a cardholder objects to a bill, the card issuer must offer an explanation and, if relevant, documentary evidence to the cardholder within 30 days of the complaint date.
No charges until dispute is resolved
Transactions that the cardholder disputes as “fraud” will not be charged until the issue is resolved.
Option to change billing cycle
For all credit cards issued, card issuers do not follow a typical billing cycle. In order to enable flexibility in this area, cardholders will be given a one-time option to change the credit card’s billing cycle to their preference.
Refund amount will be adjusted to payment due
Any credit amount originating from refund, failed, reversed transactions or similar transactions before the payment due date for which the cardholder has not made payment will be adjusted to the ‘payment due’ and reported to the cardholder.
Cardholder approval is must to increase the credit limit beyond a set limit
Card-issuers is required to obtain the cardholder’s consent to adjust credit amounts beyond a cut-off of one percent of the credit limit or Rs 5,000, whichever is lower, arising from refund, failed, reversed transactions or similar transactions against the credit limit for which the cardholder has already made payment. Within seven days of the credit transaction, the permission must be requested via e-mail or SMS.
As per RBI Master Direction, “The card-issuers shall reverse the credit transaction to the cardholder’s bank account, if no consent/response is received from the cardholder. Notwithstanding the cut-off, if a cardholder makes a request to the card-issuer for reversal of the credit amount outstanding in the card account into his/her bank account, the card-issuer shall do it within three working days from the receipt of such request.”