The Reserve Bank of India (RBI) has issued a circular, Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022, which outlines the guidelines for the issuance and conduct of credit cards and debit cards in India.
Key Definitions:
A number of key terms are defined in the circular, including add-on credit card, business credit cards, cardholders, card-issuers, charge card, co-branded card, convenience fee, corporate credit card, credit card, credit limit, debit card, and interest-free credit period.
The circular outlines the eligibility criteria for card-issuers, the governance framework for the issuance of credit cards, and the types of credit cards that can be issued. It also covers the closure of credit cards, interest rates, and other charges.
Key Takeaways:
The RBI circular aims to ensure that credit card and debit card businesses are conducted in a fair and transparent manner, and that cardholders are protected. The circular provides clarity on various aspects of credit card and debit card operations, including definitions, eligibility, governance, and conduct.
Chat with the Master Direction: