Credit Card New Rule: If you have a credit card then this news can be beneficial for you. Actually, the central bank i.e. Reserve Bank of India (RBI) has made some changes in the rules for issuing credit cards. The banking regulator has also issued a notification in this regard. According to this notification, existing credit card customers can make changes in the billing cycle as per their convenience.
Special rules for credit cards-
The Reserve Bank (RBI) has come up with a special rule for credit card users. This rule is for change in billing cycle. The new rule says that cardholders can change the billing cycle as per their convenience. Notification has already been issued in this regard. This rule has also been implemented.
Due date will also change-
Due date may also change due to change in billing cycle. Earlier this work was not easy. Because the billing cycle of a card is fixed at the time of issue of the credit card. At the same time the billing date and due date is fixed. This sequence continues until the card is cancelled. Now the Reserve Bank has given an opportunity to credit card holders to change the billing cycle.
What is billing cycle?
A credit card billing cycle is the time period between your billing statements. This billing period may vary from one credit card issuing bank/NBFC to another. Its duration can range from 27 days to 31 days. Your statement is generated by your credit card issuing bank at the end of your billing cycle. You have time till the due date to pay this bill.
Understand with an example-
Assume that your credit card statement is generated on the 6th of every month. In such a situation, your credit card billing period will start from the 7th of that month and will end on the 6th of the next month. All your credit card transactions during this period will appear in your monthly credit card statement. It contains information about all credit card payments, cash withdrawals (if any) and credit card EMIs. In this example we have considered the billing period to be 30 days, but this may vary depending on the card type and your credit card provider.
