Mumbai: Attention, debit card, and credit card holders. The Reserve Bank of India (RBI) on Tuesday extended the deadline to implement new guidelines related to credit card issuance till October 1. Earlier, the RBI had set the deadline for July 1. “Considering various representations received from the industry stakeholders, it has been decided to extend the timeline for implementation of the following provisions of the Master Direction to October 01, 2022,” the RBI said in a statement on June 21.
The RBI has also extended the deadline for several key changes. As per the updates from the RBI, if the customer does not activate a credit card within 30 days of issuance, the banks or card-issuers must seek a one-time password from the user to activate the card. And if the customer does not provide consent for activating the card, the issuer should close the card within seven working days without any extra cost.
The RBI said that the card issuers must ask for explicit consent before increasing the credit limit on a credit card. “Card-issuers shall ensure that the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder,” RBI mentioned.
The RBI further said that the terms and conditions for payment of credit card dues will be stipulated. “The unpaid charges/levies/taxes shall not be capitalised for charging/compounding of interest,” the regulator said.
“The stipulated timeline for implementation of rest of the provisions of the Master Direction remains unchanged,” RBI added.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
