New Delhi. The Reserve Bank of India has postponed its plan to implement some new rules made for credit, debit and co-branded cards from July 1. On the demand of the banking industry, now these rules will be implemented after three months i.e. from October 1. The rules, which were to be implemented from July 1, included not increasing the credit limit without the customer’s consent and also closing the credit card if the customer does not activate it for a month.
According to a report by Moneycontrol.com, RBI said in a statement issued on June 21 that the deadline for implementing some of the new rules being implemented from July 1, 2022, has been extended by 3 months. These rules will now be applicable from October 1 instead of July 1. RBI has said that this decision has been taken after listening to and considering the concerns of all the stakeholders related to the industry.
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Indian Banks Association had sought time
Moneycontrol.com had reported in a report published on June 14 that the Indian Banks Association (IBA), the apex body of banks, had sought six more months to implement the new rules framed for cards. Now the Reserve Bank, after listening to the banks and other concerned parties, has postponed the implementation of some rules from July 1.
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Now these rules will not apply
In the new rules that the RBI has extended the deadline for implementation, the first provision is that if a customer has not activated the credit card of a company within 30 days of his own, then the customer has to activate the company. consent has to be obtained. This consent will be taken through OTP. If the customer does not give consent, the credit card account will have to be closed. The second provision, which will not be applicable from July 1, is that the credit limit cannot be increased without taking approval from the customer.
Tags: banking, credit card, RBI
FIRST PUBLISHED : June 21, 2022, 20:22 IST