RBI Mandates New Credit Card Billing Rules w.e.f July 2022

Published On: 30 Apr 2022

 

The Reserve Bank of India (RBI) recently released new guidelines related to credit cards and debit cards. These new directives would be effective starting July 2022 and are applicable to all Scheduled Banks, except for Payments Banks, State Co-operative Banks and District Central Cooperative Banks, as well as to Non-Banking Financial Companies (NBFCs) within the country. Amongst the many provisions provided, below we give you a gist of new credit card billing guidelines.

Important Points to Note About Credit Card Billing:

1. Credit Card Billing Cycle:

RBI has stated that “Card-issuers shall ensure that there is no delay in sending/dispatching/emailing bills/statements and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged”. It has also urged issuers to take measures to avoid repeated complaints from cardholders regarding late invoicing.

2. Resolve Billing Complaints within 30 days of Raising the Issue

If the customer finds any discrepancy in the credit card bill and raises a complaint, the issuer is expected to direct an explanation along with providing relevant documentary evidence within 30 days of the customer issuing the complaint.

3. Hold Charges on Transactions Disputed as “Fraud” Until Resolved

If a customer disputes any transactions as “fraud” in the credit card statement, no charges will be levied against it until the issue is completely resolved

4. Flexible Billing Cycle

Since there is no standard billing cycle for different credit card issued by banks or NBFCs, RBI has made it flexible for cardholders by providing a one-time option to modify the credit card billing cycle as per their convenience.

5. Refund/Failed/Reversed Amount to be Adjusted Against ‘Payment Due’

As per the new guideline, any credit amount which is a result of refund, failed transaction, or a reversed transaction for which the payment hasn't been made before the credit card payment date shall be immediately adjusted in the “payment due”. The cardholder would be notified about the same accordingly.

6. Cardholder’s Consent Required for Increasing the Limit Arising out of Refund/Failed/Reversed Transactions

Credit card issuing banks and NBFCs need to seek consent within seven days of the transaction from the cardholder when adjusting the credit amount beyond a cut-off, one percent of the credit limit or ₹5000 (whichever is lower) that is arising out of refund, reverse transaction, or a failed transaction, for which the payment is made. In case no consent or response is received, the card issuers shall reverse the credit transaction to the cardholder’s bank account.

Our Partners

RBL Bank
RBL Bank

The Bajaj Finserv RBL Bank SuperCard offers you unlimited benefits of a credit card coupled with additional rewards. You can use it on diverse platforms, shop with it in a single swipe, use it to withdraw cash without paying any interest, and save more on each transaction.

Axis Bank
Axis Bank

Axis Bank brings to you an amazing range of Credit Cards offer benefits from lifestyle to travelling, dining and much more. You can conveniently pay your utility bills, get great discounts on online shopping, grab extra movie tickets and much more.

SBI Card
SBI Card

SBI Card presents a wide range of credit cards designed specially to suit the financial needs of the cardholders. This exciting range of various Credit Cards is now available at Bajaj Markets in just a few simple clicks.

Citibank
Citibank

Citibank brings to you a wide range of credit cards that suit your needs perfectly. Whether you want to travel or save big on your daily spends, you can always find the perfect Citibank Credit Card for your needs. Read the features and benefits of each credit card here at Bajaj Markets, compare and apply for the best credit cards from Citibank.

ICICI Bank
ICICI Bank

ICICI Bank is here to offer you a wide range of credit cards that are designed as per your requirements. Enjoy great benefits, discounts, rewards, and more with the ICICI Bank credit cards. Compare each of them here on Bajaj Markets and apply for the one that suits your needs the best.

Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab