Mumbai: The Reserve Bank of India had permitted banks and NBFCs providing credit and debit cards three extra months to adhere to certain regulations, including activating cards without customers’ agreement.
Beginning on July 1, banks and non-banking financial institutions (NBFIs) were required to put into practice the Master Direction on “Credit Card and Debit Card” Issuance and Conduct Directions, 2022.” However, the Reserve Bank of India (RBI) later agreed to continue the deadline for implementation of several sections of the Master Direction to October 1, 2022, according to a circular released by the central bank after receiving numerous comments from industry players. One of the clauses for where more time has been granted refers to credit card activation.
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The following are important details on rule changes affecting credit and debit cards that will take effect on October 1. According to the Master Direction, card issuers are required to get the cardholder’s One Time Password (OTP)-based consent before activating a credit card if the customer hasn’t done so for more than 30 days from the card’s issue date. Within seven working days of asking the consumer for approval to activate the card, card issuers are required to terminate the card account without charging the customer any fees.
What You Need to Know About Changes in Debit Card and Credit Card Rules Beginning on October 1
3. In addition, card issuers were required to make sure that the credit limit set and communicated to the cardholder was never exceeded without the cardholder’s express permission by July 1.
4. They have been given till October 1st to respond in this instance as well.
5. The RBI delayed by three months the implementation of a regulation concerning late fees and compound interest.
6. Unpaid charges, levies, or taxes may not be capitalised for interest charging or compounding purposes per the Master Directions. The rest of the Master Direction’s stipulations, however, must still be implemented by July 1.
