The Reserve Bank of India has issued a master direction on credit card and debit card issuance and conduct directions, effective from July 1, 2022.
Applicability and Definitions
The directions apply to all card-issuers and cardholders in India. Key terms defined include add-on credit card, annual percentage rate, billing cycle, business credit cards, cardholders, card-issuers, card loyalty programs, charge card, co-branded card, convenience fee, corporate credit card, credit card, credit limit, debit card, form factor, interest-free credit period, minimum amount due, most important terms and conditions (MITC), prepaid card, principal cardholder, total amount due, and unsolicited credit card.
Conduct of Credit Card Business
The directions outline the eligibility criteria for issuing credit cards, the governance framework, issue of credit cards, types of credit cards, closure of credit cards, and interest rates and other charges.
The directions aim to promote sound credit card practices, provide greater transparency to cardholders, and ensure fair and informed decision-making in the credit card industry.
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