Credit Card Payment: If you have made a purchase with a credit card and missed the payment on the stipulated time limit, then penalty is charged from you for that. Also, you have to pay interest, the rates of which are very high.
Credit Card Payment: Timely payment of credit card bill should be on everyone’s priority list. Failure to do so will result in a penalty. Plus, there could be implications such as higher interest rates or a drop in your credit score.
If you, too, have missed the deadline to pay your credit card dues, then, as per the Reserve Bank of India (RBI) guidelines, the credit card issuer will credit your account with the credit information companies (CICs) in the past. ‘ may declare.
If the amount remains outstanding for more than three days from the due date, the issuer may also levy penalty charges or late payment fees.
The RBI directive states that the issuer should calculate the number of ‘due days’ and penalty charges from the payment due date as indicated in the credit card statement.
In addition, penal interest or late payment charges are levied only on the outstanding amount that the credit card holder has failed to pay and not on the total amount.
The credit card issuer can change these charges only after giving at least one month’s prior notice to the credit card holders.
Further, if you feel that the charges levied by the issuer are not desirable, you can choose to surrender your credit card after paying all the dues. In such cases, the issuer cannot impose any additional charges on you for closing the credit card account.
When you apply for account closure, the issuer has to process your request within seven working days as per RBI order.
If the issuer fails to complete the closure process within the stipulated period, you will be fined ₹ 500 per day from the issuer for the delay till the credit card account is closed.
