RBI extends the timeline for implementing certain provisions related to credit and debit cards.


The Reserve Bank of India (RBI) on 21st June 2022, has extended the timeline from 1st July 2022 to 1st October 2022, for implementation of the following provisions of the Master Direction with regard to the issuance and conduct of credit cards and debit cards.

As per the master direction, the following provisions shall be implemented from 1st October 2022.

  1. Paragraph 6(a)(vi) – Card-issuers shall 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. If no consent is received for activating the card, card-issuers shall close the credit card account without any cost to the customer within seven working days from date of seeking confirmation from the customer.
  2. Paragraph 6(b)(v) – 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.
  3. Paragraph 9(b)(ii) – No capitalization of unpaid charges/levies/taxes for charging/ compounding of interest.

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