The provisions relating to credit cards under the RBI (Credit Card and Debit Card – Issuance and Conduct) Guidelines, 2022 apply to each scheduled bank (excluding payment banks, state co-operative banks and District Central Co-operative Banks) and all Non-Banking Financial Corporations (NBFCs) operating in India. These rules will come into effect from July 1, 2022.
Here are some of the points regarding credit card billing.
Credit card billing cycle
A billing cycle is the period during which a credit card bill is generated. Your billing cycle will begin on the 11th of the previous month and end on the 10th of the current month if your credit card statement is generated on the 10th of each month.
No delay in billing statement
Card issuers should ensure that bills/statements are sent promptly by email and that the consumer has a sufficient number of days, at least a fortnight to pay before interest is charged, according to the senior management of the RBI.
The RBI said: “In order to avoid repeated complaints about late billing, the card issuer may offer to issue bills and account statements via internet/mobile banking with the informed permission of the cardholder. menu. Card issuers must have a system in place to ensure that the cardholder receives the billing statement.”
Cardholder must get a response within 30 days of the date of the complaint
Card issuers should verify that no incorrect invoices are generated and distributed to cardholders. If a Cardholder objects to a charge, the Card Issuer must provide an explanation and, if applicable, documentary evidence to the Cardholder within 30 days of the date of the complaint.
No fees until the dispute is resolved
Transactions that the cardholder disputes as “fraud” will not be charged until the issue is resolved.
Possibility to change the billing cycle
For all credit cards issued, card issuers do not follow a typical billing cycle. To allow for flexibility in this area, cardholders will have the unique ability to change the credit card billing cycle to their preference.
The refund amount will be adjusted to the payment due
Any amount of credit from refunds, failed transactions, canceled transactions or similar transactions before the payment due date for which the cardholder has not made payment will be adjusted to “payment due”. and reported to the cardholder.
Cardholder approval is required to increase the credit limit beyond a set limit
Card issuers are required to obtain cardholder consent to adjust credit amounts above a threshold of one percent of the credit limit or Rs 5,000, whichever is greater. low, resulting from refund, failed, canceled transactions or similar transactions against the credit limit for which the cardholder has already made payment. Within seven days of the credit transaction, authorization must be requested by email or SMS.
Per RBI’s primary guideline, “Card issuers shall reverse the credit transaction to the cardholder’s bank account, if no consent/response is received from the cardholder. Notwithstanding the order, if a cardholder asks the card issuer to transfer the amount of credit remaining on the card account to his bank account, the card issuer must do so within three working days of receipt of such request.