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Credit card users in India may no longer be able to overpay their dues

Indian banks have prohibited credit card users from paying more than their outstanding balances, with excess payments being refunded, according to The Times of India.

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The primary reason behind this policy change is the banks' concerns regarding money laundering and fraudulent activities.

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Instances have arisen where surplus credit card amounts were exploited for international transactions through hacking, as reported by a bank executive in TOI..

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To prevent overpayments, banks have implemented safeguards in their applications, limiting users from exceeding their outstanding balances.

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While transferring funds to other banks is permissible, card-issuing banks ensure the return of surplus funds within a week.

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HDFC Bank, SBI Card, and Axis Bank are among the institutions that restrict customers from paying more than their outstanding balances via their apps.

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However, some ICICI Bank customers have reported being allowed to make overpayments.

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The shift aims to enhance security and mitigate the risks associated with excess credit card payments in India.

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BY - ASHAY JAIN