Many guidelines have been issued regarding credit cards. Many of the rules for billing, card issuance and credit card closure will be implemented from this month. These rules have been introduced by the Reserve Bank of India, which will provide better security and power between the cardholders and the issuer.
One of the rules introduced by the RBI is that if you have applied for a credit card termination and even though your credit card has not been terminated by the bank, you will be paid a penalty of Rs 500 per day from the bank. This rule has been applied under Section 35A and Section 56 of the Banking Regulation Act, 1949.
In a notification issued on April 21, the RBI had strongly instructed banks that if a bank or institution does not close its credit card even at the request of a customer, it will have to pay a penalty of Rs 500 per day. The provisions of these instructions relating to credit cards will apply to all non-banking financial companies (NBFCs) operating in India except payment banks, state co-operative banks and district central co-operative banks.
At the same time, the RBI also said that the rule would apply only when full credit card payments have been made. If there is still money in the credit card or there is money left to be deposited, it will not be closed. Banks will have to close the credit card within 7 working days, for more than 7 days, the bank will be fined, unless the account is closed.
The RBI has said that credit card customers should never request a withdrawal from the post office or speed post, as the process may be delayed. They can request closure at the branch or through online mode.