The Reserve Bank of India (RBI) on Tuesday extended the deadline for implementing certain provisions of the main instructions it issued on the issuance of debit and credit cards by three months, from July 1, 2022 to October 1. 2022.
“In view of the various representations received from the players in the sector, it has been decided to extend the deadline for the implementation of the following provisions of the Master Directorate until October 01, 2022,” the central bank said in a circular.
In policy guidance released in April, RBI said card issuers will need to ask the cardholder for one-time password (OTP)-based consent to activate a credit card, if the card doesn’t. has not been activated by the customer for over 30 years. days from the date of issue.
And, if no consent is given by the customer, card issuers will have to close the credit card account at no cost to the customer within seven business days from the date of the customer’s request for confirmation. Now, the central bank has extended the deadline for implementing this provision.
Additionally, card issuers will now have more time to implement RBI’s directive to ensure that the credit limit as sanctioned and notified to the cardholder is not exceeded at any time without seeking explicit consent. of the cardholder has also been extended.
RBI had also said terms for payment of credit card charges, including the minimum amount due, would be stipulated to ensure there was no negative amortization. Unpaid charges/levies/taxes will not be capitalized for invoicing/composition of interest. The deadline for implementing this provision has also been postponed by the plant to October 1, 2022.