Reserve Bank’s circular will be applicable from July 1.
Experts say about the free credit card that it is a marketing strategy in a way. There is a joining fee and another annual charge for taking a credit card. Before taking the card, definitely find out what is being waived.
credit card companies ,Credit CardsTo prevent arbitrariness, the Reserve Bank has issued a new guideline which will be applicable from July 1, 2022. In the new guidelines of RBI, the interests of customers have been further strengthened, along with emphasis has been laid on making all types of card related charges transparent. According to the new guideline, credit cards cannot be issued without customer approval. Apart from this, the credit card limit cannot be increased and other types of offers will also not be applicable. If any card issuer breaks the rules, then a fine of double the bill will have to be paid.
Now card holders cannot be threatened for payment of credit card dues. If a bank does this, then a complaint can be made to the Ombudsman of the Reserve Bank. Speaking to ET Now Swadesh regarding the usage of credit cards, PV Subramaniam, CEO, Subramani.com said that it is a very useful thing. It is like a knife that a doctor uses to save a life and a butcher to kill. If the credit card is used properly then it is a very useful thing.
Know this thing about free credit card
Experts say about the free credit card that it is a marketing strategy in a way. There is a joining fee and another annual charge for taking a credit card. Many times it happens that you are told that you are being given a free credit card. The joining fee may have been waived off for you. Along with the joining fee, the first year fee has also been waived off. From next year onwards you will have to deposit this charge. The second is Life Time Free Credit Card in which all such fees are waived off.
Need to tell in detail about multiple charge
One complaint of credit card users is that they do not get proper charge information. In such a situation, while protecting the interests of customers, the Reserve Bank has focused on increasing transparency. According to the circular, credit card issuers will have to share detailed information about annual charges. The card issuer will have to share detailed information regarding retail purchases, balance transfer, cash advance, non-payment of minimum payment, late payment fees and other charges.