By: ABP News Bureau | Updated at : 23 Apr 2022 03:36 PM (IST)
Woman's hand paying with a blue credit card ( Image Source : Getty )
New Delhi: The Reserve Bank of India (RBI) released a new set of guidelines Thursday regarding credit card and debit card issuance and operations. The directions referred as Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022, will be effective from July 01, 2022.
The provisions of these directions relating to credit cards shall apply to every scheduled bank (excluding payments banks, state co-operative banks and district central co-operative banks) and all non-banking financial companies (NBFCs) operating in India.
ALSO READ: Reserve Bank's Monetary Policy Committee Shifts Focus To Control Inflation
Going by the directions, the card issuer will end up paying a fine to the cardholder if there is a delay in closing the credit card account.
Here’s What You Should Know about Closure of Credit Card
1) The RBI has directed that any request for closure of a credit card should have to be honoured within seven working days by the credit card-issuer, subject to payment of all dues by the cardholder.
2) If a credit card has not been used for a period of more than one year, the process to close the card shall be initiated after intimating the cardholder.
3) Also note that the cardholder has to be immediately notified about the closure through email, SMS, etc about the closure of credit card.
4) The credit card issuer has to provide multiple channels for submission of request for closure of credit card account.
5) Some of these channels include helpline, dedicated e-mail-id, Interactive Voice Response (IVR), prominently visible link on the website, internet banking, mobile-app or any other mode.
6) The card-issuer shall not insist on sending a closure request through post or any other means which may result in the delay of receipt of the request.
7) If the card issuer fails to process the closure of credit card within seven working days, it should pay penalty of Rs500 per day of delay to the customer till the closure of the account, provided there is no outstanding in the account.
Business News Highlights: Sensex Rises 599 Points; Nifty Settles Near 22,150
Sugar Addition In Baby Food To Maggi Ban: Nestlé Controversies Over The Years
BSE Warns Investors Against Deepfake Videos Involving CEO Recommending Stocks
New EPFO Rule: PF Holders Can Now Withdraw Up To Rs 1 Lakh For Medical Emergencies
Risks To Riches: Top 10 Penny Stocks In India To Check Out In 2024
Mysuru Man Assaulted For Making Song On PM Modi, Probe Underway: Report
UP Board Result 2024 LIVE: UPMSP To Announce Class 10, 12 Result Today At 2:00 PM; Direct Link And Other Details
Lok Sabha Polls Phase-1 Voting Records 60% Turnout Amid Isolated Incidents Of Violence
UP: Massive Fire Engulfs Junkyard In Ghaziabad's Khoda Colony, Firefighting Ops On