The Reserve Bank of India (RBI) has prohibited banks from issuing credit cards or increasing the limit of existing cards or introducing other facilities without the approval of customers. Failure to comply with this will have to pay double the amount of the bill as fine to the companies concerned. The central bank said that the person in whose name the card is issued can make a complaint to the RBI Ombudsman. The Ombudsman will decide the amount of the fine.
Also strict on intimidators: The central bank has also prohibited intimidation or harassment of card issuing entities or third parties acting as agents for collection of dues from customers. This guideline will come into effect from July 1, 2022.
Who will do credit card business: As per the guidelines, commercial banks with a net worth of Rs 100 crore can start credit card business independently or in tie-up with card issuing banks/Non-Banking Financial Companies (NBFCs). can. Regional Rural Banks are also permitted to issue credit cards in partnership with their sponsor or other banks. RBI has made it clear that NBFCs will not start credit card business without its approval.
Rules on debit card also: The central bank also said that banks will not force customers to take debit card facility. Also, taking a debit card will not be linked with the benefit of other services.
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