New rules for closing credit cards: The bank will have to close the credit card within 7 days, in case of delay, the customer will get 500 rupees daily

New rules for closing credit cards: The bank will have to close the credit card within 7 days, in case of delay, the customer will get 500 rupees daily

The Reserve Bank of India (RBI) has issued guidelines regarding the issuance and operations of credit cards. It said that if the bank does not complete the process of closing the credit card within seven working days after the entire due is cleared on the request of the customer, then a fine of Rs 500 will be payable every day. This guideline will be applicable from July 1, 2022.

The name of this guideline has been given by the Reserve Bank of India (Credit Card and Debit Card - Issues and Conduct) Directions, 2022.

Rules for credit card companies

• If a credit card holder has paid the balance amount, the request for closure of the credit card will have to be processed within seven days.
• The Cardholder will be required to inform the Credit Card about the closure of the Credit Card immediately through SMS or Email.
• Companies cannot compel Cardholders to send closure requests by post or otherwise. This may cause delay in receiving the request.
• If the card issuing company or bank does not complete the credit card closure process within seven working days, then they will have to pay a fine of Rs 500 every day till the account is closed.

Know these rules too

• If the credit card is not used for more than a year, the bank may initiate the process of closing the credit card account after informing the card holder.
• If the cardholder does not respond within 30 days, the card issuer can close the card in case all the bills are cleared.
• The card issuer has to inform the credit information company within 30 days from the date of closure of the card.
• At the time of closing the credit card account, if there is some credit balance in the credit card account then it has to be transferred to the card holder's bank account.