Credit card rules There is good news for those who use credit cards. RBI has issued some new credit card rules for the benefit of customers. This new rule will come into effect from 1 July 2022.
If you use a credit card, then RBI has brought special rules for you. Reserve Bank of India (RBI) has recently issued some new credit card rules for the benefit of customers.
The central bank has said that cardholders should be given an opportunity to modify the billing cycle of credit cards as per their convenience. According to him, a one-time option should be provided to the banks for this. This new rule will come into effect from 1 July 2022.
The billing cycle is the period between the expiry date of two consecutive bills. The payment date is usually 15 to 25 days after the end of your billing cycle. Suppose your most recent billing cycle is from March 11, 2022 to April 10, 2022. In this case the payment date may fall after or before 20 days.
The beginning of the billing cycle till the payment date is the interest free period that the cardholder enjoys for the transactions made during the billing cycle. Payment made after the due date also attracts interest and penalty. It also affects the credit score.
Once the RBI regulations on credit cards come into effect, you can choose to change the billing cycle in such a way that the payment is compatible with your cash flow.
For example, if you want all your payment due dates to fall before, say, the 5th of every month, you can adjust your credit card billing cycle accordingly.
Apart from this, this move of RBI will help even if you have multiple credit cards. Card issuing banks do not follow the standard billing cycle for all credit cards issued. In this case, you can use the one-time modification option.
