The Prime Directive on “Credit and Debit Cards” Issuance and Conduct Guidelines, 2022” was due to come into force on July 1 for banks and non-bank financial institutions (NBFCs). However, in accordance with RBI’s notification published on June 21, 2022, these implementation deadlines for these three components have been extended until October 1, 2022.
Card issuers must request a one-time password (OTP)
If a cardholder has not activated a credit card for more than 30 days after the date of issue, card issuers must request consent based on a one-time password (OTP) before doing so. . Card issuers must terminate the credit card account without charging the consumer within seven business days of seeking consent to activate the card if no consent is granted.
Credit limit approval
Card issuers must ensure that the credit limit that has been approved and notified to the cardholder is never increased without the cardholder’s express consent.
No fees, taxes or levies are capitalized for the purpose of charging or compounding interest.
According to the RBI notification, only the aforementioned dates have been extended until October 1, 2022. While the deadline to implement the others such as credit card billing rules, card closing rules and among others remain unchanged, as of July 1, 2022.
Credit card billing rules
The RBI said: “In order to avoid repeated complaints about late billing, the card issuer may offer to issue bills and account statements via internet/mobile banking with the informed permission of the cardholder. map. Card issuers must have a system in place to ensure that the cardholder receives the billing statement.”
Read more: Credit card billing rules coming into effect July 1, 2022
Credit card closing rules
Banks must honor credit card cancellation requests by immediately contacting the customer via email, text or other means. Customers should have many channels to close their cards, such as a helpline, a dedicated email address, an Interactive Voice Response (IVR), a clearly visible link on the website, online banking, a mobile application or any other form, and cannot insist on any route.