RBI Guidelines on Credit Card Management: A credit card can be a bane for many people when cash is not readily available during emergencies.
Also, if you want to increase your credit score quickly, a credit card is a good tool. You can build a good credit history by paying the bills on time and using the card for bill payments and purchases.
The country’s number of credit card users is gradually increasing with these uses. Consumers have increased but are failing to use the credit card correctly.
There are many reasons for this. Due to insufficient awareness and clarity, credit card issuing companies and banks face difficulties.
Who is responsible for the bill for add-on cards? Can the billing cycle be changed? To whom should I complain if I have difficulty using the card? Card users usually have such doubts. RBI has answered all of them. Let’s find out here.
Exceeding the limit: Can I use the credit card beyond the limit? Consumers often wonder what will happen if they do.
However, companies and banks can give the option to use beyond the limit with the customers’ permission. It can be deactivated if not required.
Only allow an additional limit after informing the customer; do not charge extra. RBI has clarified that interest should not be included in the credit limit when charging over-limit charges.
Pending Bill: Credit cards can accept add-on cards. In that case, the primary cardholder is responsible for paying the bill on all of them. Single business credit cards allow for splitting the bill.
Is there insurance? Although there is no requirement to provide insurance on a credit card, some companies and banks issue cards with insurance.
Every statement must include insurance details, including the nominee. The address of the insurance company that issued the policy should include the complete details of the policy and the phone number. In the case of group insurance, a phone number to be contacted in case of emergency should be provided.
How about complaints? You should file a complaint with the card issuing companies and the bank about the inconvenience they caused you.
If there is no response within 30 days, rejection, or dissatisfaction with their response, the customer should contact the RBI Ombudsman.
Complaints can be made online or through the application form. If the minimum amount is paid, the interest-free period is completed.
However, banks and finance companies will charge interest on the amount you spend through the card from that month onwards.