Credit Card Users Happy With RBI New Rule | Credit card users happy with RBI’s new rule

by time news

The Reserve Bank of India has advised companies not to issue or upgrade credit cards to customers without their consent. The RBI has said that ‘unsolicited cards / upgrades are strictly prohibited’ in connection with the issuance of credit and debit cards to customers. These new rules of the RBI are expected to come into effect from July 1, 2022. It is also said that customers will benefit from the new rules imposed by the RBI.

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Credit card issuers are required to provide customers with a factual statement along with the application for the card. It should contain clear information about interest rate and fees. If the credit card application is rejected, the credit card issuer must state in writing the reason for it. In case of loss of cards or card fraud, the card issuer may consult the customer to pay the sum insured at his discretion. Also unasked cards are more likely to be misused before the card in whose name it is issued reaches that particular person.

In the event of such misuse and compensation, the card issuer will assume full responsibility, regardless of the name of the card holder. Card issuers must obtain a one-time OTP number from the customer to activate the credit card, if the card has not been activated by the customer for more than 30 days from the date of issue of the card. The cardholder will close the credit card account at no cost to the customer within seven working days as the customer has not used the card.

Cardholders should not disclose any credit card information to creditors before activating the card. Approval for the issuance of the cards should be transparent rather than implicit. Written approval must be obtained from the card holder. Card issuers are required to follow the guidelines frequently issued by the Telecom Regulatory Authority of India. The RBI has imposed a number of conditions on cardholders not to give them excessive loans without the customer’s consent.

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