The Reserve Bank of India (RBI) on Tuesday extended certain compliance deadlines for banks and card issuing companies providing credit and debit cards by three more months.
The Master Direction on “Credit Card and Debit Card” Issuance and Conduct Directions, 2022″ was to go into effect on July 1 for banks and non-banking financial institutions (NBFCs). However, as per RBI’s notification issued on June 21, 2022, these timeline to implement these three aspects has been extended to October 1, 2022.
Card-issuers to seek One Time Password (OTP)
If a card holder hasn’t activated a credit card for more than 30 days after the date of issuance, card-issuers must request for One Time Password (OTP)-based consent before doing so. Card-issuers must terminate the credit card account without charging the consumer within seven working days after asking for their approval to activate the card if no consent is granted.
Credit limit approval
Card-issuers must make sure that the credit limit that has been approved and notified to the cardholder is never increased without the cardholder’s explicit consent.
No charges, taxes, or levies are capitalised for the purpose of charging or compounding of interest.
According to the RBI notification, only above-mentioned dates have been extended to October 1, 2022. While, the deadline to implement the others such as credit card billing rules, card closure rules and among others remain unchanged, at July 1, 2022.
Credit card billing rules
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.”
Read more: Credit card billing rules that will be effective from July 1, 2022
Credit card closure rules
Banks must honour credit card cancellation requests by immediately contacting the customer by email, SMS, or other means. Customers must be provided with numerous channels to close their cards, such as a helpline, a dedicated email address, Interactive Voice Response (IVR), a clearly visible link on the website, internet banking, a mobile app, or any other form, and cannot insist on any route.