CHENNAI: The Reserve Bank of India (RBI) on extended the deadline for implementing a number of directives pertaining to the credit and debit card business.
The RBI announced in a statement that the deadline for adhering to several directives had been extended to October 1 in response to comments from industry stakeholders. The directives were announced on April 21 and they will take effect on July 1st.
The extended deadlines are for instructions, such as the need that card-issuers obtain One Time Password (OTP)-based authorization from the cardholder before activating a credit card if the customer hasn't done so for more than 30 days after the card's date of issuance.
Card issuers must terminate the credit card account without charging the consumer within seven working days after asking for their approval to activate the card if no consent is granted. The card issuers were therefore required to ensure that the credit limit that had been sanctioned and advised to the cardholder was not exceeded at any moment without the cardholder's personal consent.
Unpaid fees, levies, taxes, and interest were not to be capitalised for charging or compounding.