The Reserve Bank of India (RBI) on Thursday came up with its master direction on credit card and debit card issuance and operations. Credit card new rules: Pay fine Rs 500 per day if delay to closure.
The directions called, Reserve Bank of India (Credit Card and Debit Card Issuance and Conduct) Directions, 2022, shall be effective from July 01, 2022 and provisions of these directions relating to credit cards shall apply to every scheduled bank (excluding payments banks.
State co-operative banks and district central co-operative banks) and all non-banking financial companies (NBFCs) operating in India. According to the directions, the card issuer will pay a fine to the cardholder if there is a delay in closing the credit card account.
Here are RBI rules on closure of credit card:
1) If the card issuer fails to process of closure of credit card within seven working days, it should pay penalty of Rs 500 per day of delay to the customer till the closure of the account, provided there is no outstanding in the account.
2) The RBI directions say that any request for closure of a credit card should have to be honoured within seven working days by the credit card-issuer, subject to payment of all dues by the cardholder.
3) The credit card issuer has to provide multiple channels for submission of request for closure of credit card account.
4) These include helpline, dedicated e-mail-id, Interactive Voice Response (IVR), prominently visible link on the website, internet banking, mobile-app or any other mode.
5) The card-issuer shall not insist on sending a closure request through post or any other means which may result in the delay of receipt of the request.
6) The cardholder has to be immediately notified about the closure through email, SMS, etc about the closure of credit card.
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7) If a credit card has not been used for a period of more than one year, the card issuer can initiate the process of closure of the credit card account after intimating the cardholder.
8) If there is no reply is from the cardholder within a period of 30 days, the card account shall be closed by the card-issuer, subject to payment of all dues by the cardholder.
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9) The card issuer has to update the closure of of the card with the Credit Information Company within a period of 30 days.
10) After the closure of the credit card account, any credit balance if available in credit card account, should be transferred to the cardholder’s bank account.
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