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.
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.
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.
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
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.
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.
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.