RBI’s new bank card guidelines: There’s now an choice to alter your billing cycle

The Reserve Bank of India (RBI) lately issued bank card laws geared toward safeguarding the pursuits of consumers.

As a part of the 26-page doc, the central financial institution said that cardholders have to be offered a one-time choice to change the billing cycle of the bank card as per their comfort. This new rule shall be efficient from 1 July, 2022.

The billing cycle is the interval between the cut-off dates of two consecutive payments. Your fee due date shall be usually 15–25 days after your billing cycle ends.

Say, your current billing cycle is 11 April, 2022 to 10 May, 2022. The fee due date may fall on or earlier than 4-5 June, 2022.

The starting of the billing cycle until the fee due date is the interest-free interval that the cardholder enjoys for the transactions accomplished through the billing cycle. Payments made after the due date entice curiosity and penalty fees along with the influence on the credit score rating.

When the RBI laws on bank cards develop into efficient, you’ll be able to decide to alter the billing cycle such that the fee turns into due on the day that fits you and your money inflows.

For occasion, in order for you all of your fee due dates to be, say, earlier than the fifth of each month, you’ll be able to accordingly change your bank card billing cycle.

Further, this transfer by RBI additionally helps when you may have a number of bank cards with a number of due dates. Card issuers don’t observe an ordinary billing cycle for all bank cards issued. In this case, you may make use of the one-time modification choice, if you want all due dates on the identical day or earlier than a selected day of the month.

Mayank Mehta, Partner, Pioneer Legal mentioned, “The flexibility now supplied is a welcome change and gives vital profit to the cardholders in managing their funds.”

For salaried people, Mehta suggests aligning funds due date with the receipt of wage, to price range the funds. He believes in having all of the payments in sync to keep away from a number of funds and due dates.

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