RBI grants three months extension to banks, NBFCs to comply with certain rules of cards
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In a relief to banking and non-banking financial sector, the Reserve Bank of India (RBI) has given three months extension to banks and non-banking financial companies (NBFCs) to comply with certain provisions related to issuing credit and debit cards, including activation of cards without customers' consent. Considering various representations received from the industry stakeholders, RBI has decided to extend the timeline for implementation of the following provisions of the Master Direction to October 01, 2022.
One of the key provisions of the Master Direction relates to the activation of credit card. As per the Master Direction, card issuers must seek One Time Password (OTP) based consent from the cardholder for activating a credit card, if the same has not been activated by the customer for more than 30 days from the date of issuance.
As per the notification, other provisions are related to credit card limits and levies. Card-issuers shall ensure that the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder.
