There will be new credit card rules in place as of October 1. New lending rules were released by the Reserve Bank of India (RBI) in April 2022. You’ll observe the following three changes in credit cards as of October 1. These rules apply to card issuers’ requirements for one-time passwords, tokenization of credit card data, and authorization of credit card limits.
The rules and How will they affect the cardholders?
Approval of credit card limits
Consumers can no longer request an increase in their credit card limit from the credit card company. It must have the cardholder’s approval and notification once it’s finished.
Consumers can no longer request an increase in their credit card limit from the credit card company. It must have the cardholder’s approval and notification once it’s finished.
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Only a notification was sent to cardholders when their credit limit was raised. After October 1st, they must expressly agree before the issuer lifts the sanctioned and advised credit limit.
Credit Card Tokenization
Previously, third-party payment applications used credit and debit card information, the names of cardholders, and CVVs to transfer funds from banks to the platforms. The RBI has created a card tokenization system to make such transactions safe and secure by encrypting the credit card information.
Credit Card Tokenization
Previously, third-party payment applications used credit and debit card information, the names of cardholders, and CVVs to transfer funds from banks to the platforms. The RBI has created a card tokenization system to make such transactions safe and secure by encrypting the credit card information.
Unpaid levies, charges, or taxes cannot be capitalized by issuers for the purpose of charging or compounding interest.
Card companies will check for an OTP (OTP)
The credit card issuer must first obtain one-time-password (OTP) based consent if the cardholder hasn’t activated their card for more than 30 days after the date of issuance. The credit card company shall deactivate the card without charging an additional fee within seven business days if the cardholder rejects the request to activate the card.
The credit card issuer must first obtain one-time-password (OTP) based consent if the cardholder hasn’t activated their card for more than 30 days after the date of issuance. The credit card company shall deactivate the card without charging an additional fee within seven business days if the cardholder rejects the request to activate the card.
Issuers are required to get a one-time password (OTP)-based authorization from the cardholder before activating a credit card that has been dormant for longer than 30 days after it was issued.
If the cardholder declines, the card issuer must close the account without billing them within seven business days.
If the cardholder declines, the card issuer must close the account without billing them within seven business days.
