New Credit and Debit card rules of RBI

The Reserve Bank of India on April 21 issued a fresh set of directions for banks and other lending organisations regarding the issuance of debit and credit cards. Below are keh details (attached full document) and we should all review and if anything is anti-consumer should oppose and ask RBI to enhance.

These new guidelines will come into effect from July 1, 2022.

There are many important things in terms of the well-being of the customers and the functioning of the banks in this new rule.

According to RBI's new guidelines, the interest rate and charges on the card must be shown on a single page. Customers will be informed of the reason for rejection of their card application, and when card terms change, customers will be notified.
If the card is supplied without being asked for, the individual will be refunded twice the amount. In addition, banks will be allowed to provide customers with card fraud insurance and will not issue or upgrade cards without the customer's consent.
If the card is used without permission, the bank, not the cardholder, is responsible for the loss. Also, to activate the card, an OTP-based system is necessary. If the card has not been activated after 30 days, the bank will close it without further delay.

It is also in the rules that telemarketers of banks will not be able to harass customers unnecessarily. Conditions must be made clear in the case of EMI of the amount spent on the card, and no zero interest rate will be applicable in any way on charging interest.
It will be necessary to provide an example to demonstrate how the interest rate will be calculated. Transaction information in co-branded cards is not shared with the partner. In the advertising of the co-branded, the issuing bank's name must be prominent. If a transaction is flagged as 'fraud,' it will not be charged until the problem is remedied. If a refund or money from a failed transaction is received, it will be adjusted right away.
Before notifying CIBIL of the default, give the consumer seven days, said the bank. Before reporting defaults to rating agencies, banks should do their investigation. The recovery agencies will be required to observe the Fair Practice Code by the banks.
Apart from all this, it is less difficult to close a credit card. According to RBI, the card must be closed within 7 days of receiving the application for closure. Failure to close within 7 working days may result in a penalty of Rs 500 per day. The procedure of canceling the credit card will also require extra resources. more  

View all 9 comments Below 9 comments
Thanks more  
Thanks for the information. Very useful information.Can banks clear on line transaction without obtaining clearance for the transaction from the credit card holder without sending him of her OTPA. I t has happened with me.Banks involved in this are ICICI and HSBC. more  
Subscriptions on Autopay System ( like Netflix ) have been discontinued and authorisation has to be done every time. more  
Good, useful, information. Thanks for sharing more  
That is true we need to have better information and also to give feedback to the govt if at all they need it more  
Post a Comment

Related Posts

    • Cricket World Cup Tickets Scam

      BCCI or whosoever is selling online tickets via bookmyshow and other websites you are likely doing big scam. Ahmedabad match, capacity 135000, ticket was sold out within minute. However ...

      By Dinesh Shah
      /
    • Regulating child access to social media OTT and online gaming

      Is the need of the hour. I am amazed at the fact that many of the mainstream media channels and papers are refraining from talking about it. Perhaps there is vested interest. Super glad ...

      By Sudesh Rai
      /
    • Junk consumption soaring only bad to follow

      Varun Beverages sold 480 Cr Litres of Pepsi and other Beverages in FY23 Dominos India sold 6.7 cr to 7.83 cr Pizzas in FY23 Pizza hut India (Sapphire) sold abou...

      By Sudesh Rai
      /
    • Are we going to have a rabies and dog bit epidemic

      LocalCircles Manager and members are doing excellent work in sensitising the Government to take dog bite menace seriously and on the other hand we have officers like District Magistrate Noida who a...

      By Radha Puri
      /
    • Banking difficulties of people

      Thrilled to see LocalCircles banking difficulties survey in multiple english hindi news papers yesterday.

      By Shailesh Deshmukh
      /
    • Appeasing minorities by giving vehicle subsidies

      Is a really wrong policy that is being deployed bh Karnataka Government. The only way such subsidies must be given is based on economic status (basis tax returns) and not caste. We all r...

      By SN Mittal
      /
    • Kudos LocalCircles

      Great work on bank malpractices and escalating this issue to RBI. All members who have a loan need to save the attached notification in their mobile/computer. Your bank will now have to...

      By Shikha Jain
      /
    • Need safety standards for commercial public events

      A lot of women who went to the AR Rahman concert this weekend had to face horror. Many, i mean a lot were groped and assaulted.

      By Sarita S
      /
    • High costs of medical education

      It is costing anywhere between 1.5 crores to 4 crores for a medical specialisation MD degree. How many people in middle class have this kind of money in their banks which means only chi...

      By Sarita Ravichandran
      /
    • G-20 India - Declarations

      Attached for all those who are interested. This circle has such knowledgeable people. We should discuss how these broad areas of consensus can be translated into real areas of actions on the ground

      By Ashima Gupta
      /
    • Medicine Side Effects information to consumer

      Both the news papers I receive here in Noida have the localcircles survey published on the unknown side effects of medicines

      By RN Chopra
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)