Credit cards when used effectively can be very helpful in taking care of numerous expenses as well as building your credit score. However, make sure to be very particular with regards to clearing your credit card dues on time. Now, there are certain rules announced by the RBI that are related to the payment procedure of a credit card. Listed below are the most recent set of rules that came into effect from July 01st 2022:
- There will be no delay in issuing a credit card bill
In accordance with the master guidance by the RBI, the bank that issued you the credit card must ensure that the bills are provided to you quickly through email. It should be done so that the cardholders have sufficient time to pay the bill.
- The bank should respond to a complaint within 30 days of filing
Another important rule by the RBI is that within 30 days of the filing of a complaint by the cardholder, the bank should respond to the grievance. In the complaint, if you were to dispute a charge, the bank should respond to you with an explanation and, if needed, documents that support the charge levied.
- Cardholders should have the option to choose a credit card billing cycle
Usually, banks issuing credit cards do not adhere to a standard billing cycle. Also, cardholders will also have a one-time option to modify the credit card’s billing cycle. The refunded amount will be adjusted with the outstanding amount.
- Card cancellation within seven days
Financial institutions issuing the credit card must address any request for cancelling a credit card within seven business days. However, the institution before cancelling the card should ensure that the cardholder has paid all remaining balances. It is also very important to note that in case an NBFC or a bank fails to cancel a card within seven days, a penalty of ₹500 will be levied each day until the card is cancelled. But for a card to be cancelled, do note that all bill payments must be cleared.
- The card must be cancelled if it isn’t used for over a year
According to the new RBI rules, if it happens that a credit card is not used for over a year, the bank may choose to close it. The bank will notify a cardholder and after the notification, the procedure to cancel the card will begin. The bank will go ahead and deactivate the card if there are no changes after 30 days of the intimation.
The rules mentioned above have eased the process of credit card payment for cardholders. If you are looking for a credit card, you can find details of such cards online before deciding which one to go for. For example, the IDFC FIRST Bank website provides detailed information on different credit card options such as FIRST Millennia, FIRST Classic, FIRST Select, FIRST WOW! and FIRST Wealth. Read up to understand which card is most suitable as per your preference.