RBI’s new guidelines for credit and debit cards

RBI’s new guidelines for credit and debit cards: These days, there is a huge demand for credit and debit cards in the market. Everyone wants to have debit and credit cards for his convenience. With the high adoption of credit cards in India, the Reserve Bank of India (RBI) has recently announced new rules and regulations to protect consumers or customers from fraud and hidden charges.

The RBI has a long list of guidelines, rules, and regulations for other banks and credit card issuers. These new guidelines cover debit cards and credit cards both.

This is well known that credit cards have gained popularity after this COVID-19 pandemic. According to a survey, the total number of credit cards in December 2019 stood at 55 million, which has now increased to approximately 72 million at the end of February 2022. It means, there is a growth of nearly 30% in credit cardholders.

The RBI’s main idea behind these new guidelines is to enhance the customer’s protection, especially in cases of fraud, theft, unauthorized usage, etc.

Now we are going to tell you these new guidelines related to credit cards:

  • There will be no hidden charges on credit cards issued free of charge.
  • The card issuers can now have an insurance cover for liabilities arising out of lost credit cards, or credit card frauds.
  • They will require a one-time password to activate a credit card that has not been activated within 30 days.
  • Any type of information about the cardholders will not be shared with any credit bureaus before the activation of the card.
  • EMI conversion with interest will not be disguised.
  • In case of rejection of a credit card application, the customer shall convey in writing the reason for such type of rejection.
  • Closure requests for an existing credit card shall be considered within 7 working days. Failure in this shall result in a penalty of ₹500 per day of delay, which will be payable to the customer.
  • Closure of the credit card, if not in use for one year, with a 30-day notice to the cardholder.
  • Any changes in charges regarding the credit card shall be informed 30 days before their implementation.

Now, we are going to tell you guidelines related to debit cards:

  • Debit cards will be issued to the person who has a savings bank or current account.
  • No debit cards will be issued to cash credit or the loan account holders.
  • Banks will never force a customer to get a debit card.
  • Another form of debit cards, like wearables, might be issued by scheduled commercial banks.

 

 

Leave a Reply

Your email address will not be published.