Earlier in June, RBI extended the deadline for a few provisions in the master course to take effect starting October and not from July 1st. Hence, it is essential to understand what new modifications will come into force starting in July for your credit cards and debit cards.
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- Rules for credit, debit and co-branded cards are set to modify from July 1. In April this year, the Reserve Bank of India (RBI) issued a host of new tips such as issuance, insurance, interest, and fees amongst others on these cards issued by banks and other monetary institutions.
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- The guidelines will carry in seamless utilization of the cards and assist customers during loss, theft, and fraud as well. However, later this month, RBI extended the closing date for a few provisions in the master course to take effect starting October and not from July 1st.
- Hence, it is essential to understand what new modifications will come into force starting in July for your credit cards and debit cards.
1. Issue of credit cards:
- During the rejection of credit cards, card issuers are required to bring in writing the precise reasons which caused the rejection of the application. Further, card issuers are required to provide the option of insurance cover to clients on their credit cards that could deal with the liabilities arising from lost cards, card frauds, etc.
- RBI strictly prohibits the issuance of unsolicited cards/up-gradation of credit cards. For instance, if an unsolicited card is issued/current card upgraded and activated without the explicit consent of the client and the latter is billed for the same, thereby, the card provider will not only need to reverse the charges forthwith but additionally pay a penalty without demur to the recipient amounting to two times the value of the expenses reversed.
- Thereby, in case, in case you are issued unsolicited credit cards or they may be upgraded without your consent, you can always report a complaint about the same, and issuers are prone to pay the costs back at the side of penalties. Also, you could approach the RBI Ombudsman who would decide the quantity of repayment payable by the card provider to the recipient.
- The Ombudsman Scheme will assist you in getting repayment for loss of the complainant’s time, charges incurred, harassment, and mental pain suffered by him/her. Further, any loss arising out of misuse of unsolicited credit cards, for instance, if the card has been misused before it may reach you, then the card provider will be answerable for the misuse and the client will not be answerable for the same.
2. Issue of debit cards:
- Banks are directed to formulate a complete debit card issuance policy with the approval of their Boards and problem debit cards to their clients following this policy. RBI approval isn’t essential for banks desirous of issuing debit cards to their clients. Debit cards can only be issued to clients who’ve financial savings bank and current accounts.