Summary of the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022
This master direction outlines the guidelines for the issuance and conduct of credit and debit cards in India. It comes into effect from July 1, 2022.
The direction applies to all card-issuers and cardholders in India. Key definitions include add-on credit cards, annual percentage rate, billing cycle, business credit cards, and charge cards, among others.
Conduct of Credit Card Business
The direction sets forth the eligibility criteria for issuing credit cards and establishes a governance framework for card-issuers.
It outlines the procedures for issuing credit cards, including the types of credit cards that can be issued (e.g., add-on credit cards, co-branded cards).
Closing a credit card account is also governed by the direction, which specifies the notice period and any outstanding liabilities.
The direction also sets forth the interest rates and other charges that can be applied to credit card accounts.
In summary, this master direction aims to regulate the credit and debit card market in India by outlining the guidelines for issuance, conduct, and closure of accounts, as well as the rates and charges applicable.
Chat with the Master Direction: