Credit card new rules to be effective from July 1, 2022, check details here

According to the instructions, if the credit card account is not closed at a given time, the card issuer will be required to pay a fine to the cardholder.

Digital Desk: The Reserve Bank of India (RBI) issued new guidelines for credit card and debit card issues and operations on Thursday. Reportedly, the guidelines which come under Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022, are scheduled to come into effect from July 1, 2022.

Every scheduled bank (except payments banks, state co-operative banks, and district central co-operative banks) and all non-banking financial firms (NBFCs) operating in India are subject to the requirements of these credit card directives.

According to the instructions, if the credit card account is not closed at a given time, the card issuer will be required to pay a fine to the cardholder.

What You Need to Know About Credit Card Closure

1) The RBI has mandated that any request to close a credit card must be fulfilled by the credit card issuer within seven working days, subject to the cardholder paying all outstanding debts.

2) If a credit card has not been used for more than one year, the procedure of closing the card will begin after notifying the cardholder.

3) Take into account that the cardholder must be notified of the credit card closure immediately via email, SMS, or other means.

4) The credit card issuer must provide several channels for customers to submit requests for credit card account cancellation.

5) Helpline, dedicated e-mail-id, Interactive Voice Response (IVR), widely accessible link on the website, internet banking, mobile app, or any other form are some of these channels.

6) The card-issuer shall not depend on sending a closing request by mail or any other means that may cause the request to be delayed in receiving.

7) If the card issuer fails to deliver the credit card closure within seven working days, the customer should be charged a penalty of Rs500 per day of delay until the account is closed, provided there are no outstanding charges on the account.