The Reserve Bank of India (RBI) has extended certain conditions regarding credit card Rules and their limitations by three months in response to stakeholder requests. As a result, starting on October 1, 2022, these provisions will be in force. They were supposed to go into effect on July 1st, 2022.
The requirement that credit card-issuing banks or institutions obtain the cardholder’s One Time Password (OTP)-based consent before activating credit cards if they haven’t done it themselves for more than 30 days from the date of issuance has been extended.
The rule further stated that card issuers must cancel credit card accounts without charging the consumer any fees within seven working days of the date they asked for the customer’s approval to activate the card.
The RBI announced in a notification released today that the provisions’ implementation has been delayed by three months in light of the Indian Banks’ Association’s (IBA) requests for a six-month extension on the amendments to the Master Directions for Regulating and Managing credit card rules.
Another provision that has been extended states that card issuers must ensure the credit limit that has been approved and advised to the cardholder is never exceeded without the cardholder’s express permission.
The provision further stated that there would not be capitalization of outstanding fees, levies, or taxes for charging or compounding of interest.
The co-branding provisions, however, which restrict the role of co-branding businesses to marketing and distribution of credit or pre-paid cards, have not been extended.
According to this provision, the co-branding partner will not have access to data on transactions made using the card, which will take effect on July 1, 2022.