The Reserve Bank of India has issued an order related to credit card and debit card issuance and operations. It is called Credit Card and Debit Card – Issuance and Conduct Directions, 2022.
As per this, a cardholder will have to pay a fine of Rs 500 if there is a delay in closing the credit card account. The new rules will come into effect from July 1, 2022. The banks that are not included in this order are payments banks, state co-operative banks, and district central co-operative banks) and all non-banking financial companies (NBFCs) operating in India.
“These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cybersecurity-related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank,” RBI said in a media release.
According to the press release issued by the RBI, here are a few points you must keep in mind:
- 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. After the closure of a credit card, the cardholder shall be immediately notified about the closure through email, SMS, etc.
- Cardholders will be provided with an option to submit a request for closure of a credit card account through multiple channels such as the helpline, dedicated e-mail-id, Interactive Voice Response (IVR), and prominently visible link on the website, internet banking, mobile app or any other mode.
- 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 may consider introducing, at the option of the customers, an insurance cover to take care of the liabilities arising out of lost cards, card frauds, etc. In cases where the card issuers are offering any insurance cover to their cardholders, in tie-up with insurance companies, the card issuers shall obtain explicit consent in writing or digital mode from the cardholders along with the details of nominee/s.
You can read more about the guidelines in the link given above.
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