RBI Introduces New Credit Card Rules for Transparency and Easier Cancellation
RBI announces new credit card rules to ensure transparency in charges, fair interest calculation, and quicker cancellation of unused cards.
Prasanth Subramani
The Reserve Bank of India has introduced new rules for credit cards to improve transparency and protect customers.
According to the new guidelines, credit cards cannot be activated without the customer’s consent. Banks must also obtain approval before increasing the credit limit. All charges, including interest and late payment fees, must be clearly mentioned in billing statements.
The RBI has also instructed banks to cancel unused credit cards within 30 days after receiving a request from the customer. If customers pay part of the outstanding amount, late fees can only be charged on the remaining unpaid balance.
These new rules aim to reduce hidden charges, ensure fair practices, and make credit card services more transparent for customers in India.
