RBI's Directions on Credit Cards
भारतीय आकाशवाणी समाचार
ALL INDIA RADIO NEWS
RESERVE BANK OF INDIA
Written consent of the applicant shall be required before issuing a credit card.
Card-issuers shall ensure that loans offered through credit cards are in compliance with the instructions on loans and advances issued by the Reserve Bank from time to time.
Any request for closure of a credit card shall be honoured within SEVEN working days by the credit card-issuer, subject to payment of all dues by the cardholder.- Failure on the part of the card-issuers to complete the process of closure within seven working days shall result in a penalty of 500 per day of delay payable to the customer, till the closure of the account provided there is no outstanding in the account.
Card-issuers shall quote Annualized Percentage Rates (APR) on credit cards for different situations such as retail purchases, balance transfer, cash advances, non-payment of minimum amount due, late payment etc., if different. The method of calculation of APR shall be given with clear examples for better comprehension.
Card-issuers shall inform the cardholders of the implications of paying only the minimum amount due. A legend/warning to the effect that "Making only the minimum payment every month would result in the repayment stretching over months/years with consequential compounded interest payment on your outstanding balance" shall be prominently displayed in all the billing statements to caution the cardholders about the pitfalls in paying only the minimum amount due.
Card-issuers shall not unilaterally upgrade credit cards and enhance credit limits. Explicit consent of the cardholder shall invariably be taken whenever there is/are any change/s in terms and conditions.
No charges shall be levied on transactions disputed as 'fraud' by the cardholder until the dispute is resolved.
Card-issuers do not follow a standard billing cycle for all credit cards issued. In order to provide flexibility in this regard, cardholders shall be provided a one-time option to modify the billing cycle of the credit card as per their convenience.
Card-issuers/their agents shall not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude upon the privacy of the credit card- holders' family members, referees and friends, making threatening and anonymous calls or making false and misleading representations.
