New norms in credit card usage,

New Norms on Card Utilization RBI has issued new norms regarding utilization of credit cards in excess of the permitted credit limit.

credit card

What are the new rules for credit card

The RBI has said that the consent of the beneficiary is required to allow the use of additional amount beyond the credit limit in the card usage. This protocol has been introduced to avoid fraud in card usage.

It has also been informed that customers should be given the facility to disable or enable the feature of using the amount beyond the credit limit. Therefore, card companies cannot allow usage beyond the credit limit without the customer's permission and cannot impose a penalty.

Similarly, users' approval is required to issue new cards. However, if a new card is issued without the card being claimed, it must be returned within one week if the customer keeps it unactivated. Similarly, the Reserve Bank has said that the facility of choosing card distribution companies should also be provided.