InvestorQ : What are the new credit closure rules announced by RBI?
riya Ranade made post

What are the new credit closure rules announced by RBI?

7 months ago
The Reserve Bank of India (RBI) has announced new guidelines for the closure of credit and debit cards, in order to protect the interests of the users. The key rules can be summarized as follows:

  • Cardholders can request the closure of their credit card account using a variety of channels, including a helpline, dedicated e-mail address, Interactive Voice Response (IVR), a clearly visible link on the website, internet banking, mobile banking, or any other means.
  • In new credit card rules, RBI has made it mandatory for the issuer that any request for closure of a credit card should have to be honored within seven working days. Failing to do that the issuer will have to pay the penalty of Rs500 per day of delay to the customer till the closure of the account, provided there is no outstanding in the account.
  • If a credit card has not been used for more than a year, the cardholder will be notified and the procedure to terminate the card will be initiated. If the cardholder does not respond within 30 days, the card account will be cancelled by the card issuer, subject to the cardholder's payment of any dues.
  • If there is any credit amount remaining in cardholder accounts after the account is closed will be transferred to the cardholder's bank account. If the cardholder's bank account information is not available to them, card issuers must obtain it.
  • Following the closure of a credit card Immediately, the cardholder shall be notified of the closure via email, SMS, or other means.