The Reserve Bank of India (RBI) on Thursday emerged with its lord guidance on issuance and activity of Mastercards and charge cards.
The Directions called the Reserve Bank of India (Credit Cards and Debit Cards – Issuance and Conduct) Directions, 2022 will come into force with impact from July 01, 2022 and the arrangements of these Directions connecting with Credit Cards (Scheduled Banks, State Co-usable Banks and District Central Co-employable Banks) and India Applicable to all Non-Banking Financial Companies (NBFCs) (with the exception of payments banks) working in the according to the guidelines, delay in shutting the credit card account will bring about the card guarantor suffering a consequence to the cardholder.
RBI rules on closing credit cards
- The RBI order expresses that any solicitation for conclusion of a Mastercard should be finished by the Visa guarantor inside seven working days, dependent upon installment of all duty by the cardholder.
- The conclusion of the Credit Card ought to be promptly conveyed to the Cardholder through email, SMS and so on.
- The Visa guarantor should give various channels to presenting the solicitation for conclusion of the Mastercard account.
- These incorporate helpline, devoted email-id, Interactive Voice Response (IVR), conspicuously apparent connection on the site, web banking, versatile application or some other mode.
- The Card-Issuer won’t demand sending the conclusion demand by post or by whatever other means which might bring about delay in receipt of the solicitation.
- Assuming that the card backer neglects to handle the Visa conclusion inside seven working days, it ought to suffer a late consequence of Rs 500 every day to the client till the record is shut, if there are no extraordinary balance in the account.
- On the off chance that the Mastercard has not been utilized for a period surpassing one year, the card backer might start the method involved with shutting the Visa account in the wake of illuminating the cardholder.
- If there is no reaction from the Cardholder inside a time of 30 days, the Card Account will be shut by the Card Issuer, dependent upon payment of all levy by the Cardholder.
- The card backer should illuminate the credit data organization about the card conclusion inside a time of 30 days.
- After the Mastercard account is shut, any credit balance accessible in the Visa account should be moved to the cardholder’s bank account.
