Credit card users in India may no longer be able to overpay their dues

[vivdwive]

This is being done very late imo and has been a prime reason for the frequent devaluations we are seeing lately

 

[COSMOCRAT]

Ok, so what about very small amount of overpayment? I sometimes overpay bill by extra ₹1 or 2 just to be on safe side. 😆.

Guess we all do that. No way someone spends extra time to input exact decimals.

 

[SSV]

Guess we all do that. No way someone spends extra time to input exact decimals.

Eaxctly, so there will be some limits applied here...before they initiate refund...

 

[Pankhuri]

Sbi allowed 50% above credit limit

Payment or additional funds? Also in a single transaction or spread over multiple? Bcoz in multiple payments?

 

[plastikman]

All are full and overflowing..

Time to upgrade to next level 😉

 

[NShah]

Payment or additional funds? Also in a single transaction or spread over multiple? Bcoz in multiple payments?

I don't understand can elaborate it😁

 

[D₹V]

Jo hoga dekha jayega 😏😏

 

[Pankhuri]

I don't understand can elaborate it😁

assume your sbi limit is 1L. Now you said SBI allowed you 50%. I am asking was it that they allowed you to add 50% of your existing limit extra to your credit card account taking your balance to negative 50K or did they allow you make a payment of 1.5L? If yes on the 2nd question, then was it in one go or in multiple payments?

 

[NShah]

assume your sbi limit is 1L. Now you said SBI allowed you 50%. I am asking was it that they allowed you to add 50% of your existing limit extra to your credit card account taking your balance to negative 50K or did they allow you make a payment of 1.5L? If yes on the 2nd question, then was it in one go or in multiple payments?

I have done this adding extra amount in credit card
In single payment

 

[Pankhuri]

I have done this adding extra amount in credit card
In single payment

Bro, adding is not the thing we are discussing though.

Have you spent 50% extra over your current limit in SBI on a single purchase?

 

[NShah]

Bro, adding is not the thing we are discussing though.

Have you spent 50% extra over your current limit in SBI on a single purchase?

Yes in single purchase

 

[SSV]

Let us dissect this news article here... (for fun )

Credit card users in India may no longer be able to overpay their dues:

It is only "may" not "shall" , hence optional ...

no longer allowing credit card users to pay more than their outstanding amount.

What happens when someone prepays well before the statement date... They are saying if overpaying the outstaning amount... What if outstanding itself -Ve..

they are refunding the excess amount.

Imagine the overhead expenses of refunding pennies... So there will be some limit applied here..
Econimics and Finances are all about CBA ( Cost benefit Analysis).

A spokesperson of HDFC Bank was also quoted as saying that customers cannot park their excess funds in credit cards because it is a lending product, not a savings account.

Completely agree with this,.. Fundamentally CC s are lending products and hance should not be used as Deposit accounts. but in this case Banks are at advantageous position.. that is free money for them.. But some anti social elements may be coming on this way like , maony laundering.. etc..
I am not sure if the excess amount is in few thousands , does this attract moneylaundering... Common sense says NO.. Even it it is money laundering.. there is trail for everything.. I am missing something here.. may be my brain is not sharp enough to catch the point.. May be the real money launderers can catch this.. I can not...

"There is also a recent guideline that asks banks to refund excess credit balances on cards within a certain period. A credit card is not a prepaid card product to permit loading and utilisation of the instrument," they said.

This is the only thing that is enforceable as it is a guidleline from, may be RBI...
All others are at the discretion of the Banks..

We all know that Banks are commercial entities.. They only do things if they benefit them ..

Generally speaking, in any notification/ formal messages.. there will be two categories of items.. 1) Apparent and 2) Inherent..

Apparent- we all know that it can be interpreted by slicing and dicing the announcement..
Inherent- -- This is the tricky part and only the masters of the game can comprehend...

In my view, the banks may start returning the excess amount subject to limits..
or.
the Banks may want to strictly implement this, there by some lazy fellows like me can be lazy and delay the payment / underpays/ etc. etc.. so that it may lead to the charges and fees which are banks' major income contributors...( may be this is the inherent factor here)... who knows...

Time will tell...

 

[D₹V]

Let us dissect this news article here... (for fun )


It is only "may" not "shall" , hence optional ...



What happens when someone prepays well before the statement date... They are saying if overpaying the outstaning amount... What if outstanding itself -Ve..



Imagine the overhead expenses of refunding pennies... So there will be some limit applied here..
Econimics and Finances are all about CBA ( Cost benefit Analysis).



Completely agree with this,.. Fundamentally CC s are lending products and hance should not be used as Deposit accounts. but in this case Banks are at advantageous position.. that is free money for them.. But some anti social elements may be coming on this way like , maony laundering.. etc..
I am not sure if the excess amount is in few thousands , does this attract moneylaundering... Common sense says NO.. Even it it is money laundering.. there is trail for everything.. I am missing something here.. may be my brain is not sharp enough to catch the point.. May be the real money launderers can catch this.. I can not...



This is the only thing that is enforceable as it is a guidleline from, may be RBI...
All others are at the discretion of the Banks..

We all know that Banks are commercial entities.. They only do things if they benefit them ..

Generally speaking, in any notification/ formal messages.. there will be two categories of items.. 1) Apparent and 2) Inherent..

Apparent- we all know that it can be interpreted by slicing and dicing the announcement..
Inherent- -- This is the tricky part and only the masters of the game can comprehend...

In my view, the banks may start returning the excess amount subject to limits..
or.
the Banks may want to strictly implement this, there by some lazy fellows like me can be lazy and delay the payment / underpays/ etc. etc.. so that it may lead to the charges and fees which are banks' major income contributors...( may be this is the inherent factor here)... who knows...

Time will tell...

i ain't reading all that
i'm happy for u tho
or sorry that happened

 

[SSV]

i ain't reading all that
i'm happy for u tho
or sorry that happened

No need to be sorry.. Nothing changes for me or for a lot others here.. it only effects if there is a huge sum in CC account..

 

[Abhishek012]

Let us dissect this news article here... (for fun )


It is only "may" not "shall" , hence optional ...



What happens when someone prepays well before the statement date... They are saying if overpaying the outstaning amount... What if outstanding itself -Ve..



Imagine the overhead expenses of refunding pennies... So there will be some limit applied here..
Econimics and Finances are all about CBA ( Cost benefit Analysis).



Completely agree with this,.. Fundamentally CC s are lending products and hance should not be used as Deposit accounts. but in this case Banks are at advantageous position.. that is free money for them.. But some anti social elements may be coming on this way like , maony laundering.. etc..
I am not sure if the excess amount is in few thousands , does this attract moneylaundering... Common sense says NO.. Even it it is money laundering.. there is trail for everything.. I am missing something here.. may be my brain is not sharp enough to catch the point.. May be the real money launderers can catch this.. I can not...



This is the only thing that is enforceable as it is a guidleline from, may be RBI...
All others are at the discretion of the Banks..

We all know that Banks are commercial entities.. They only do things if they benefit them ..

Generally speaking, in any notification/ formal messages.. there will be two categories of items.. 1) Apparent and 2) Inherent..

Apparent- we all know that it can be interpreted by slicing and dicing the announcement..
Inherent- -- This is the tricky part and only the masters of the game can comprehend...

In my view, the banks may start returning the excess amount subject to limits..
or.
the Banks may want to strictly implement this, there by some lazy fellows like me can be lazy and delay the payment / underpays/ etc. etc.. so that it may lead to the charges and fees which are banks' major income contributors...( may be this is the inherent factor here)... who knows...

Time will tell...

 

[plastikman]

Yes in single purchase

I have one doubt kindly elaborate. Supposing you have a limit of 100000 and you prepay 5000. So, the limit available is 105000. In case you have to purchase something worth 105000, would the transaction go through, assuming that the bank will allow maximum transaction limit (ECOM limit) as 100000 ?

 

[NShah]

I have one doubt kindly elaborate. Supposing you have a limit of 100000 and you prepay 5000. So, the limit available is 105000. In case you have to purchase something worth 105000, would the transaction go through, assuming that the bank will allow maximum transaction limit (ECOM limit) as 100000 ?

I don't remember I do this earlier and transaction got successful

 

[Piyush_Jaiswal]

I just overpaid my HDFC CC after going through the post, to my surprise my Credit Card limit is not crossing the assigned limit even after overpaying. The Outstanding Amount is in negative but the credit limit is not exceeding the assigned limit.
Previously the credit limit also increased for a day or two (settlement period) after overpaying so I could transact more than my credit limit but now it is not exceeding.

I was planning to make a big purchase in upcoming sale, seems I will have to find another way.

Can anyone else try and confirm?

 

[Pankhuri]

I have one doubt kindly elaborate. Supposing you have a limit of 100000 and you prepay 5000. So, the limit available is 105000. In case you have to purchase something worth 105000, would the transaction go through, assuming that the bank will allow maximum transaction limit (ECOM limit) as 100000 ?

If card is Axis then it would go through till 1.2L and if the card is SBI then it would go through till 1.5L. I think we need to find out about other cards via trial and error.

 

[Rohith_Kumar_Sp]

HDFC Bank, SBI Card, and Axis Bank do not allow users to pay above the outstanding amount through their apps, while some customers of ICICI Bank said that they were able to overpay on their credit cards. An HDFC Bank spokesperson said that since credit card is a lending product and not a savings account, customers are not allowed to park excess funds. "Banks are advised not to have excess credit on credit cards as they are also reviewed from the AML (anti-money laundering) angle. There is also a recent guideline that asks banks to refund excess credit balances on cards within a certain period. A credit card is not a prepaid card product to permit loading and utilisation of the instrument," the HDFC Bank spokesperson said.