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  
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