RBI extends deadlines for implementing key credit card activation norms
The Reserve Bank of India (RBI) on June 21st via official notification extended the deadline for implementation of some provisions for debit and credit cards to October 1, 2022 in response to requests from industry stakeholders.
RBI on Tuesday extended the compliance deadline for banks and NBFCs issuing credit and debit cards by three more months, including the prohibition on activating cards without consumers’ permission.
“The deadline for implementing the following Master Direction provisions has been extended to October 1, 2022, after consideration of numerous comments from industry stakeholders”, RBI Stated.
If a credit card hasn’t been activated by the customer for more than 30 days after the date of issuance, card-issuers must request One Time Password (OTP)-based consent from the cardholder before doing so. Within seven working days of asking for authorization from the consumer, card issuers are required to terminate the credit card account without charging the customer any fees if authorization is not received for card activation.
Card-issuers must make sure that the credit limit that has been approved and notified to the cardholder is never exceeded without the cardholder’s express permission.
There is no charging or interest-compounding capitalization of unpaid fees, taxes, or levies.
For Official Notification Download PDF Given Below: