The Reserve Bank of India (RBI) on Tuesday extended the timeline for implementation of certain provisions of the master directions it issued on issuance of debit cards and credit cards by three months from July 1, 2022 to October 1, 2022.
“Considering various representations received from the industry stakeholders, it has been decided to extend the timeline for implementation of the following provisions of the Master Direction to October 01, 2022”, the central bank said in a circular.
In the master directions issued in April, RBI had said card issuers will have to seek one-time password (OTP)-based consent from the cardholder for activating a credit card, if the same has not been activated by the customer for more than 30 days from the date of issuance.
And, if no consent is granted by the customer, card-issuers will have to close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customer. Now, the central bank has extended the deadline for implementation of this provision.
Further, card issuers will now have more time to implement RBI’s directive on ensuring the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder has also been extended.
RBI had also said that the terms and conditions for payment of credit card dues, including the minimum amount due, shall be stipulated so as to ensure there is no negative amortization. The unpaid charges/levies/taxes shall not be capitalized for charging/compounding of interest. The deadline to implement this provision has also been extended by the central to October 1, 2022.