RBI extends deadline for implementation of provisions concerning credit, debit card issuance

The Reserve Bank of India (RBI) on Tuesday notified that it has extended the timeline for implementation of a few provisions under its master directions on credit card and debit card issuance. For these provisions, the timeline has been extended 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 notification by the RBI read.

The provisions specified by the central bank are as follows: 

Card-issuers shall 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. If no consent is received for activating the card, card issuers shall close the credit card account without any cost to the customer within seven working days from date of seeking confirmation from the customer.

Card-issuers shall ensure that 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. 

No capitalization of unpaid charges/levies/taxes for charging/ compounding of interest

RBI further stated that stipulated timeline for implementation of rest of the provisions of the master direction remains unchanged.

In April, RBI has issued the master directions for credit and debit card issuance for the year 2022. These directions will be effective from July 1, 2022.