RBI Circular

RBI’s 2024 Revision on MD for Credit & Debit Card Issuances

RBI's 2024 Revision on MD for Credit & Debit Card Issuances

The amendment on the master directions for credit and debit card issuance, 2022, helps in the ever-evolving landscape of financial regulations and issuing amendments for financial institutions and individuals. The amendment to the master directions by the Reserve Bank of India is also a testament to the ongoing evolutions. The amendment brings the changes to enhance the transparency, protection, and accountability within the credit and debit cards. This amendment consists of releasing organization bank cards in addition to add-on cards as required.

Key Amendments on Master Direction for Credit and Debit Card Issuance 2022

The following are the key amendments on the Master Direction by RBI for the Credit and Debit Card issuance, 2022 are stated below:

Company Credit Cards

The RBI’s Amended Provision on the MD is para 7 clause c, which states that while company bank cards for entities or individuals continue to be, card-issuers need to currently apply an efficient system to keep track of completion use funds. This consists of releasing organization bank cards in addition to add-on cards as required.

Closure Process

The RBI’s Amended Provision on the MD is para 8 clause a, which states the fine for the hold-up in shutting a bank card account is currently 500 daily payables to the cardholder. This adjustment stresses prompt closure within seven functioning days.

Minimum Amount Due

The RBI’s Amended Provision on the MD in para 9 (b)(ii) states that the billing declarations need to currently plainly show a caution regarding the effects of paying just the minimum quantity due. Furthermore, the interest-free credit report duration is put on hold if any type of the previous month’s equilibrium continues to be exceptional.

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Reporting of the Past Due

The RBI’s Amended Provision on the MD in para 9(b)(v) states that reporting a charge card account as ‘past due’ or imposing fees will just take place after the account stays ‘past due’ for greater than 3 days. Late repayment fees are used just for the arrearage after the due date.

Payment Cycle Flexibility

The RBI’s Amended Provision on the MD in para 10 (d) states that the Cardholders are given the choice to customize the payment cycle of their charge card a minimum of when for included versatility.

Default Status Reporting

The RBI’s Amended Provision on the MD in para 12(b) states that the specific treatments, consisting of a seven-day notification duration, are needed before reporting a charge card owner’s default condition to a Credit Information Company.

Debit Card Issuance

The RBI’s Amended Provision on the MD in para 14(c) states that Debit cards will certainly not be provided to money credit/loan accounts other than when connected to certain centres like Pradhan Mantri Jan Dhan Yojana or Kisan Credit Card accounts.

Various Other Form Factors

The RBI’s Amended Provision on the MD in para 15 that the banks can provide non-plastic type elements like wearables with specific consumer consent. Disabling or obstructing choices have to be given via numerous networks.

Co-Branded Cards

The RBI’s Amended Provision on the MD in para 17(b), 21 (b), 22 states that clear standards are established for co-branded credit scores/ debit cards, highlighting the card issuer’s function coupled with obligation. Co-branding plans with financial institutions as well as NBFCs need to follow defined problems.

Unsolicited Card Dispatch

The RBI’s Amended Provision on the MD in para 23 (h) states that the cards will certainly not be sent off unsolicited. Cardholders have the choice to decrease revival together with specific approval needed for substitute cards in situations of obstruction.

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Payment for Grievances

The RBI’s Amended Provision on the MD in para 26(c) states that the Card-issuers are reliant on the complainant for losses as well as problems not redressed within thirty days. Consumers can come close to the RBI Ombudsman for conflict resolution.

Information Protection

The RBI’s Amended Provision on the MD in para 27(a) as well as 27(c)) states that the Card-issuers need to comply with information defence legislation specifically stating the objective of details sharing coupled with looking for consumer approval when sharing information.

Outsourcing Guidelines

The RBI’s Amended Provision on the MD in para 28 states that the card issuers have to comply with standards on contracting out economic solutions and also make certain possession together with storage space of card information continue to be with the card issuer.

Impact of the Amendments on Credit and Debit Card Issuance 2022

The changes presented in the Master Direction on Credit Card and Debit Card Issuance, as well as Conduct Directions, 2022, have several significant influences on the monetary landscape, impacting both banks and cardholders. Let’s check out the crucial effects:

Boosted transparency and also Accountability

The changes stress better openness in credit scores and also debit card procedures. Financial institutions consisting of non-banking banks (NBFCs) are currently a lot more responsible for giving clear details to cardholders concerning the repercussions of their monetary choices.

Strengthened Consumer Protection

The changes enhance customer defence procedures by dealing with concerns connected to minimal repayments and charges and prompt closure of accounts. Cardholders currently have extra specific information concerning the possible challenges of paying just the minimum quantity due, encouraging them to make educated economic choices.

Streamlined Closure Procedures

The modified charge framework for hold-ups in shutting bank card accounts incentivizes banks to hasten the closure procedure. This adjustment means enhancing account closure treatments, making sure an extra reliable and prompt resolution is provided for both cardholders and banks.

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Adaptability for Cardholders

The cardholders currently have raised adaptability in changing their charge card invoicing cycles. This modification recognizes the varied economic requirements of cardholders along gives them alternatives to customize their bank card use to far better fit their choices.

Focus on Data Protection

The changes highlight the value of information security by calling for specific authorization to share consumer details. Financial establishments have to stick to existing information defense regulations advertising a safe atmosphere for the handling coupled with the sharing of delicate consumer information.

Co-Branded Card Clarity

The standards for co-branded credit rating and debit cards are currently clear, and the duties and obligations of co-branding companions are being developed. This quality makes sure that co-branded cards are marketed properly with openness regarding the release.

Consumer Grievance Redressal

The changes improve the resolution procedure for client problems by reducing the time needed to get close to the RBI Ombudsman. This modification means speeding up the resolution of consumer issues and making sure an extra receptive and effective system is available.

Attachment to Outsourcing Guidelines

Financial institutions need to comply with upgraded standards on contracting out monetary solutions, especially concerning the possession and also storage space of card information. This makes certain that consumer information continues to be safe and that any type of contracting out companions comply with the defined methods.

Influence on Debit Card Issuance

The adaptability presented in providing debit cards in link with particular centres straightens with economic incorporation campaigns, such as the Pradhan Mantri Jan Dhan Yojana.

Future-Proofing the Financial Community

The modifications show the governing authorities’ dedication to adjusting the monetary community to developing requirements and also modern technologies. Financial institutions are motivated to keep up to date with these adjustments to make certain conformity as well as keep the stability of their card solutions.


These modifications are developed to strengthen the credit and debit card community, positioning a heightened focus on consumer defense, openness, and reliable procedures. Financial institutions, NBFCs, and cardholders are urged to straighten their methods with these upgraded standards to guarantee a smooth, safe, and secure card experience. In summary, the effect of this Master Direction is extensive, intending to produce an extra clear, responsible, and consumer-friendly credit score and debit card setting while dealing with modern concerns and obstacles in the monetary industry.


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