RBI guidelines regarding credit card late payment charges

[TechnoFino]

If you are using a credit card, you should Know about these RBI guidelines (effective from 1st July, 2022)

1. Card issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days.

That means, You will get 3 days extra time after due date for paying your credit card bill. ie.- your card due date - 27th January Bank can't levy late payment/interest charges/report late payment to credit bureaus if you make payment by 30th Jan.

2. Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.

ie.- Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-

3. Changes in charges shall be made only with prospective effect giving prior notice of at least 1 month. If a cardholder desires to surrender his/her card, he/she shall be permitted to do so without levying any extra charge for such closure, Subject to payment of all dues by the cardholder.

4. There shall not be any hidden charges while issuing credit cards free of charge.

 

[TheTrickySid]

If you are using a credit card, you should Know about these RBI guidelines (effective from 1st July, 2022)

1. Card issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days.

That means, You will get 3 days extra time after due date for paying your credit card bill. ie.- your card due date - 27th January Bank can't levy late payment/interest charges/report late payment to credit bureaus if you make payment by 30th Jan.

2. Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.

ie.- Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-

3. Changes in charges shall be made only with prospective effect giving prior notice of at least 1 month. If a cardholder desires to surrender his/her card, he/she shall be permitted to do so without levying any extra charge for such closure, Subject to payment of all dues by the cardholder.

4. There shall not be any hidden charges while issuing credit cards free of charge.

Really great guidelines from a consumer perspective 😅

 

[aarunn]

Great news for card users. I fervently hope that card issuers adhere to the latest guidelines.

 

[alanabraham]

I do

If you are using a credit card, you should Know about these RBI guidelines (effective from 1st July, 2022)

1. Card issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days.

That means, You will get 3 days extra time after due date for paying your credit card bill. ie.- your card due date - 27th January Bank can't levy late payment/interest charges/report late payment to credit bureaus if you make payment by 30th Jan.

2. Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.

ie.- Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-

3. Changes in charges shall be made only with prospective effect giving prior notice of at least 1 month. If a cardholder desires to surrender his/her card, he/she shall be permitted to do so without levying any extra charge for such closure, Subject to payment of all dues by the cardholder.

4. There shall not be any hidden charges while issuing credit cards free of charge.

I don't think card issuers will follow these rules. According to RBI rule, card issuer must inform the proper reason of rejection of credit card to customer. I never seen any of the bank doing that. Only thing we can hear from them is "Internal Policy".

 

[TheTrickySid]

I do

I don't think card issuers will follow these rules. According to RBI rule, card issuer must inform the proper reason of rejection of credit card to customer. I never seen any of the bank doing that. Only thing we can hear from them is "Internal Policy".

I know they don't usually follow the guidelines as very few people know about the actual guidelines and they don't even complaint about it being not followed.
But if someone escalates the issue to RBI then the bank have to answer the user.
After the user escalates the issue to RBI the bank then comes to know that this user knows all the guidelines so after that you we see a proper response form the bank.
Just escalating the issue to the higher authority makes the difference 🙂

 

[ashwink]

Impressed by rbi new guidelines

 

[AllSeeker]

Tailor made for axis.

 

[TechnoFino]

I do

I don't think card issuers will follow these rules. According to RBI rule, card issuer must inform the proper reason of rejection of credit card to customer. I never seen any of the bank doing that. Only thing we can hear from them is "Internal Policy".

we have to complain to RBI then.

 

[007]

If you are using a credit card, you should Know about these RBI guidelines (effective from 1st July, 2022)

1. Card issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days.

That means, You will get 3 days extra time after due date for paying your credit card bill. ie.- your card due date - 27th January Bank can't levy late payment/interest charges/report late payment to credit bureaus if you make payment by 30th Jan.

2. Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.

ie.- Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-

3. Changes in charges shall be made only with prospective effect giving prior notice of at least 1 month. If a cardholder desires to surrender his/her card, he/she shall be permitted to do so without levying any extra charge for such closure, Subject to payment of all dues by the cardholder.

4. There shall not be any hidden charges while issuing credit cards free of charge.

Update: Postponed by 3 months to October 01, 2022

RBI postpones implementation of certain norms related to cards by 3 months

Banks and non-banking financial companies (NBFCs) were to implement the Master Direction on 'Credit Card and Debit Card - Issuance and Conduct Directions, 2022' from July 1.

wap.business-standard.com

 

[ashwink]

Update: Postponed by 3 months to October 01, 2022

RBI postpones implementation of certain norms related to cards by 3 months

Banks and non-banking financial companies (NBFCs) were to implement the Master Direction on 'Credit Card and Debit Card - Issuance and Conduct Directions, 2022' from July 1.

wap.business-standard.com

As expected 👏 👌 🤪

 

[TechnoFino]

Update: Postponed by 3 months to October 01, 2022

RBI postpones implementation of certain norms related to cards by 3 months

Banks and non-banking financial companies (NBFCs) were to implement the Master Direction on 'Credit Card and Debit Card - Issuance and Conduct Directions, 2022' from July 1.

wap.business-standard.com

RBI extended deadline for only 3 rules, and for above mentioned 4 rules no extension granted by RBI

 

[Harry1]

Contacted BOB for bill date change as per latest rbi guidelines, but they still denied saying it is same for all BOB customers. How to escalate this to RBI?

 

[TechnoFino]

Contacted BOB for bill date change as per latest rbi guidelines, but they still denied saying it is same for all BOB customers. How to escalate this to RBI?

First email bob and ask them to change bill generation date, if they deny, email them again showing rbi new guidelines pdf, if they deny again, file complaints on rbi banking ombudsman portal

 

[Harry1]

First email bob and ask them to change bill generation date, if they deny, email them again showing rbi new guidelines pdf, if they deny again, file complaints on rbi banking ombudsman portal

Today they replied. Looks like I need to wait for them.

We refer to your trail mail and would like to inform you that currently we do not have feature for changing billing cycle. However we are in process to develop & introduce the same shortly.
It will be communicated in your Register mail ID and Mobile number.

 

[TechnoFino]

Today they replied. Looks like I need to wait for them.

We refer to your trail mail and would like to inform you that currently we do not have feature for changing billing cycle. However we are in process to develop & introduce the same shortly.
It will be communicated in your Register mail ID and Mobile number.

they are late.... you can wait... or you may file complaint with RBI

 

[sidboss]

whether refunds after statement generation considered as payment as per new guidelines or I have to pay full bill as per statement.

 

[avishj]

whether refunds after statement generation considered as payment as per new guidelines or I have to pay full bill as per statement.

I believe now they are considered as payments.

 

[Millenial Engineer]

If you are using a credit card, you should Know about these RBI guidelines (effective from 1st July, 2022)

1. Card issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days.

That means, You will get 3 days extra time after due date for paying your credit card bill. ie.- your card due date - 27th January Bank can't levy late payment/interest charges/report late payment to credit bureaus if you make payment by 30th Jan.

2. Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.

ie.- Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-

3. Changes in charges shall be made only with prospective effect giving prior notice of at least 1 month. If a cardholder desires to surrender his/her card, he/she shall be permitted to do so without levying any extra charge for such closure, Subject to payment of all dues by the cardholder.

4. There shall not be any hidden charges while issuing credit cards free of charge.

I have a doubt here- very specific but still it is possible many can experience the same. my icici card was due 23rd of last month. I paid the bill 24th early morning before 1 am (not sure the if time of payment makes a difference -only date matters I think) and this was done with another bank's net banking portal.


the minimum amount was NOT paid before.

one-time full payment i sent ,

I saw it in the credit card statement as payment received ONLY ON the 27th morning. and on the 26th icici has already slapped late payment charges AND GST.

But, the date of receiving payment is shown as 24th OCT ONLY, I called customer care and at first, even though I'm aware of the 3-day extra time rule I'm not sure of the specifics of how exactly this rule applies, so I requested cust care people to reverse the late fee- they initially created drama and later agreed to reverse only the late fee and not the GST as they said date on statement might show it as 24th they received credit ( T+1, T=23RD MY DUE DATE) , but in reality, they received on 27th (T+4).


so I asked them why then it shows as 24th then? they didn't explain it nor did they agree and on top of that, they said interest for 1 whole month is going to charged + GST. (CAN ANYONE SAY THE LOGIC BEHIND WHY INTEREST TO BE CHARGED FOR 1 WHOLE MONTH?)

I finally left this conversation at this and I got the late fee reversed. and GST NOT reversed.

NOW I came to this post because I remember this post and since I have checked my latest statement from November. no interest is charged which means that payment -----> 24th should have been calculated as payment within T+3 by bank systems,

I'm attaching the relevant pics regarding this issue.

so therefore my question is :

1. Was ICICI right in charging me a late fee on 26th (T+3) -Shouldn't they wait till the 27th morning to charge if at all they charged?

2. Did ICICI trick me by NOT reversing the GST?

 

[Millenial Engineer]

Can you guys reply regarding this?

 

[FinoGuy]

I have a doubt here- very specific but still it is possible many can experience the same. my icici card was due 23rd of last month. I paid the bill 24th early morning before 1 am (not sure the if time of payment makes a difference -only date matters I think) and this was done with another bank's net banking portal.


the minimum amount was NOT paid before.

one-time full payment i sent ,

I saw it in the credit card statement as payment received ONLY ON the 27th morning. and on the 26th icici has already slapped late payment charges AND GST.

But, the date of receiving payment is shown as 24th OCT ONLY, I called customer care and at first, even though I'm aware of the 3-day extra time rule I'm not sure of the specifics of how exactly this rule applies, so I requested cust care people to reverse the late fee- they initially created drama and later agreed to reverse only the late fee and not the GST as they said date on statement might show it as 24th they received credit ( T+1, T=23RD MY DUE DATE) , but in reality, they received on 27th (T+4).


so I asked them why then it shows as 24th then? they didn't explain it nor did they agree and on top of that, they said interest for 1 whole month is going to charged + GST. (CAN ANYONE SAY THE LOGIC BEHIND WHY INTEREST TO BE CHARGED FOR 1 WHOLE MONTH?)

I finally left this conversation at this and I got the late fee reversed. and GST NOT reversed.

NOW I came to this post because I remember this post and since I have checked my latest statement from November. no interest is charged which means that payment -----> 24th should have been calculated as payment within T+3 by bank systems,

I'm attaching the relevant pics regarding this issue.

so therefore my question is :

1. Was ICICI right in charging me a late fee on 26th (T+3) -Shouldn't they wait till the 27th morning to charge if at all they charged?

2. Did ICICI trick me by NOT reversing the GST?

1)No. As per ss payment received by ICICI in 24(past 1 day, so within grace period)
2)yes,get the gst reversed (by reopening service request) as charges already reversed