5 Credit Card Changes Announced by RBI | Changes Your Billing Cycle Now | Credit Cards

In a move to ensure transparency and accountability in the financial sector, the Reserve Bank of India has introduced 5 key changes to credit cards. Let’s see what these changes are.

Business Credit Cards

Previously, these cards could be issued as charge cards, corporate credit cards, or by linking a credit facility. Now, the RBI emphasizes prudence, mandating card-issuers to monitor the end-use of funds effectively.

Past Due Reporting and Penal Charges

Late payments can be burdensome. However, the RBI’s amendment brings relief. Accounts are reported as ‘past due’ to credit information companies (CICs) and incur penal charges if past due for more than three days. Charges are computed from the payment due date.

Now, Late payment and related charges are to be levied only on the outstanding amount after the due date, not on the total amount due.

Billing Cycle Modification

Cardholders were offered a one-time option to modify their credit card billing cycle, but now they can modify their billing cycle at least once, providing greater convenience and control over their finances.


Previously, a penalty of ₹500 per day was applicable for the delay caused by cardholders to close the account within seven working days, given no outstanding balance.

But, now the penalty has been changed to ₹500 per calendar day.

Liability and Complaint Resolution

Previously liable for losses due to their fault, card-issuers now have added accountability. If a satisfactory response is not received within 30 days, complainants can escalate the matter to the Office of the RBI Ombudsman.

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