A few compliance deadlines for banks and card issuers that provide credit and debit cards were extended by the Reserve Bank of India (RBI) by three additional months on Tuesday.
Card issuers will issue an OTP
Card-issuers must first obtain One Time Password (OTP)-based consent if a cardholder hasn't activated their credit card for more than 30 days from the date of issuance. If the customer does not give their permission to activate the card, the card issuer must cancel the credit card account without charging them within seven working days.
Approval of a credit limit
The credit limit that has been authorised and communicated to the cardholder must never be increased without the cardholder's express permission, according to card-issuing companies.
Fees for interest
For the purpose of charging or compounding interest, no fees, taxes, or levies are capitalised.
Only the dates listed above have been extended through October 1, 2022, according to the RBI announcement. While the implementation deadline for other regulations, including those governing credit card invoicing and card closure, remains July 1, 2022.
Guidelines for credit card billing
According to the RBI, "The card issuer may propose providing invoices and account statements via internet/mobile banking with the cardholder's informed authorization in order to avoid recurring complaints about late invoicing. To guarantee that the cardholder receives the billing statement, card issuers must put in place a mechanism.
Regulations for closing credit cards
Banks are required to honour credit card cancellation requests by getting in touch with the customer right away via email, SMS, or another channel. Customers must have access to a variety of channels, including a helpline, a dedicated email address, Interactive Voice Response (IVR), a prominent link on the website, internet banking, a mobile app, or any other form, and they cannot be forced to use a particular method.
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