Banks will pay you Rs 500 every day if they don’t follow this rule

Changing the credit card rule: A host of new guidelines for billing, issuing and closing credit cards have come into effect since the beginning of this month. The Reserve Bank of India has introduced these new credit card rules to provide better transparency between cardholders and the issuer, while providing more security and a sense of power to the customer. The RBI with key guidelines on the issuance and operation of credit and debit cards earlier this year. The related provisions under the Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Guidelines, 2022 have already come into effect.

“In exercising the powers conferred by Sections 35A and 56 of the Banking Regulation Act 1949 and Chapter IIIB of the Reserve Bank of India Act 1934, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby issues the instructions hereinafter specified,” the RBI said in a statement dated April 21.

What has changed under the new credit card rules?

As part of the new major guidelines, the RBI has introduced a series of new guidelines on how credit card issuers can operate. This includes changes in credit card closing, billing as well as issuance.

The provisions of these instructions relating to credit cards shall apply to all scheduled banks (excluding payment banks, state cooperative banks and central district cooperative banks) and to all non-banking financial companies (NBFC) operating in India, he said.

Credit card closing rule: card issuers must pay Rs 500 per day for breaking this rule

When it comes to closing the credit card, the RBI has recommended a host of directions in its mandate. “Any request to close a credit card must be honored within seven business days by the credit card issuer, subject to payment of all dues by the cardholder,” the central bank said. .

Among these mandates, the central bank said that the card issuer will be required to pay Rs 500 every day to the customer if he does not close his credit card within seven working days after making an application.

“Failure on the part of the card issuers to complete the closing process within seven working days will result in a penalty of Rs 500 per day of delay payable to the customer, until the account is closed provided there is no has no outstanding balance in the account,” the RBI said.

“Following the closure of the credit card account, any available credit balance on the credit card accounts will be transferred to the cardholder’s bank account. Card issuers must obtain the cardholder’s bank account details, if this is not available with them,” he said.

Further, the RBI has made it clear that the card issuer should not insist on sending a close request by post or any other means that may cause a delay in receiving the request.

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