What Are RBI’s New Guidelines On Debit And Credit Cards? List Of Important Points

The Reserve Bank of India has issued new guidelines for the issuance of credit and debit cards, effective from April 21^st. The RBI (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022 are applicable to all Scheduled Banks, except __, and Non-Banking Financial Companies (NBFCs) operational in India.

In its press release, the central bank said: "These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank,"

• As per RBI, during collection efforts, card issuers should not resort to intimidation or harassment of any kind.
• For debit card issuance, banks should not force a customer to avail debit cards and should not link debit cards for availing any service.
• If an existing credit card has not been used by a customer for 30 days from the date of issue, then the issuing company is bound to seek their consent through One Time Password (OTP)
• In case an unsolicited card (i.e. one that has not been requested for) is issued or an existing card has been upgraded/activated without customer consent, the card issuer will have to reverse the charges and pay a penalty.
• If a credit card application is rejected, the issuer will have to convey in writing the specific reasons.
• Commercial banks with net worth of ₹100 crore can take up credit card business independently or in collaboration with credit card issuing banks or NBFCs.
• Non-Banking Financial Companies (NBFCs) cannot issue credit cards without prior RBI approval.