Use Credit Cards? Beware of New Rules
Following several complaints, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) modified various policies in the interest of credit card users. Credit card businesses are also subject to regulations. The majority of individuals use a credit card, sometimes known as a bank card. In recent years, credit card usage in india has also increased. However, there are numerous issues with using it. Interest is being charged indiscriminately for misuse, according to repeated complaints.
Credit card purchases carry no interest for a specific number of days. At the same time, if the credit card amount is not paid in full, it is stated to charge up to 45 percent interest each year. customers have also complained that the terms and conditions are not disclosed to them explicitly. In this regard, the Federal Reserve has established new credit and debit card rules and recommendations. It will take effect on July 1st. As a result, the Reserve bank has instructed credit card issuers not to issue new credit cards or upgrade current ones without the customer's permission.
If it is acted upon without the customer's agreement, failure to do so will result in a fine of twice the profit. These restrictions will apply to banks, payment banks, co-operative banks, and non-bank financial entities, according to the Reserve bank of India.
Credit card issuers/banks should send bill/email reports as soon as possible. You must also ensure that the customer has adequate time to make the payment (at least 15 days) before you begin collecting interest.
The card issuer should proceed with the explicit consent of the credit card user to avoid frequent complaints about late invoicing. Bill and account reporting using mobile banking and the Internet.
Credit card issuers/banks should send bill/email reports as soon as possible. You must also ensure that the customer has adequate time to make the payment (at least 15 days) before you begin collecting interest.
The card issuer should proceed with the explicit consent of the credit card user to avoid frequent complaints about late invoicing. Bill and account reporting using mobile banking and the Internet.