If no consent is received for activating the card, issuers must close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customers.
The Reserve Bank of India (RBI) on Tuesday extended the deadline for implementing some provisions of its April 2022 master direction on issuance of credit and debit cards by three months to October 1, 2022.
Two of the three provisions pertain to rules governing customer consent for activation of credit cards and extension of credit lines. Card-issuers are required to seek one time password (OTP)-based consent from the cardholder for activating a credit card, if the card has not been activated by the customer for more than 30 days from the date of issuance. If no consent is received for activating the card, issuers must close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customers.
Issuers will now have time till September 30 to ensure that the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder. The deadline on hitting pause on capitalisation of unpaid charges, levies or taxes for charging or compounding of interest also stands deferred by three months.
The stipulated timeline for implementation of the rest of the provisions of the master direction remains unchanged.
