The Reserve Bank of India (RBI) extended the deadline for implementing a number of the master directives it issued on the issuance of debit cards and credit cards. by three months, from July 1, 2022 to October 1, 2022. The following Master Direction provisions will now go into effect on October 1, 2022 the central bank announced in a circular. This decision was made after taking into account various comments from industry stakeholders.
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- The RBI stated in the master directives released in April that card issuers must get one-time password (OTP)-based authorization from the cardholder before activating a credit card if the customer has not done so for more than 30 days from the date of issuance.
- Card-issuers must close the credit card account without charging the consumer within seven working days after asking for approval, if the customer does not give their consent.
- The timeframe for putting this provision into effect has now been extended by the central bank.
- The unpaid fees, assessments, and taxes shall not be capitalised for the purpose of charging or compounding interest.
- The central has also moved up the implementation date for this clause till October 1, 2022.
Additionally, the deadline for card issuers to comply with the RBI’s mandate to ensure that the credit limit approved and notified to the cardholder is never exceeded without the cardholder’s express agreement has been extended. In order to prevent negative amortisation, the RBI also stated that the terms and conditions for paying credit card bills, including the minimum amount required, must be specified.
Important Takeaway for All Competitive Exams:
- RBI Governor: Shaktikanta Das.
- RBI Founded: 1 April 1935, Kolkata.