RBI Guidelines: RBI has issued instructions on the operation of credit-debit cards

Important news for credit card holders. RBI has issued instructions on the issuance and operation of credit cards and debit cards. As per RBI instructions, the card issuing bank will have to pay a penalty to the cardholder for delay in closing the credit card account.

RBI has shown strictness regarding the continuous complaints regarding credit cards and debit cards. Keeping in view the interests of customers, RBI has issued master guidelines related to credit and debit cards. In this, RBI has strictly prohibited the issuance or upgrade of card without application.

The request for closure of the credit card must be completed by the credit card-issuer within seven days subject to payment of all outstanding on behalf of the cardholder.

The closure of the Credit Card should be intimated to the Cardholder immediately through email, SMS .Helpline, e-mail-id, Interactive Voice Response (IVR), prominently will be visible on the website, internet banking, mobile-app or any other for submission of request for closure of credit card to the credit card issuer mode must be used.

The card issuer will not accept the closure request by post or by any other means. If the card issuer does not close the credit card within seven days, he will have to pay a late penalty of ₹500 per day to the customer, provided there is no outstanding balance in the account.

If the credit card has not been used for a period exceeding one year, the card issuer may initiate the process of closing the credit card account after notifying the cardholder.

If there is no response from the Cardholder within a period of 30 days, the card account will be closed by the card issue. After the credit card account is closed, any credit balance available in the credit card account will have to be transferred to the cardholder's bank account.

According to the information given by the RBI, now if someone has issued a credit-debit card without applying, then banks will be fined twice. Now card issuing companies or third party agents cannot harass customers for recovery of dues. These guidelines will be applicable from July 1, 2022 and will be effective on all types of banks.