Have a debit, credit card or planning to apply for new one? Two new rules in place from October 1 - Times of India (2024)

FAQs

Have a debit, credit card or planning to apply for new one? Two new rules in place from October 1 - Times of India? ›

Starting from October 1, 2023, two new key rules on debit & credit cards will be in effect: Card issuers must issue cards across multiple card networks. Eligible customers will have the option to choose their preferred card network, either during the card's issuance or at a later date.

The new credit card rules in India include requiring OTP for card activation after 30 days of inactivity, obtaining cardholders' consent for credit limit changes, changing the computation of interest charges to exclude unpaid charges and taxes, and mandating tokenization of card data for enhanced security during online ...

No bank shall issue debit cards to cash credit/loan account holders. However, it will not preclude the banks from linking the overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana accounts with a debit card. No bank shall issue debit cards to cash credit/loan accounts.

Among several changes, the new RBI rules stipulate that at least once, the cardholder will be provided option to choose any date as the starting or closing date of the billing cycle. Instructions relating to credit cards will apply to all credit card issuing banks and non-banking financial companies (NFBCs).

Banks like HDFC, ICICI, and Yes Bank implement changes in May 2024. HDFC extends Senior Citizen Care FD deadline. ICICI updates savings account charges, and Yes Bank revises fee schedules and ATM card charges.

- This means the card-issuing banks are now required to send a pre-debit message to alert customers 24 hours before the payment due date. Then, the cardholders need to approve transactions that exceed INR 15,000 via OTP (one-time password) for a successful auto-debit payment.

Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

If your bank switched a card from Visa to Mastercard, it was likely because they felt the features and benefits of Mastercard were better than those of Visa. For example, the issuer might take into consideration processing fees or network-level benefits like travel insurance or purchase protection.

Before we analyse further, we should know the three renowned brilliant principles of bookkeeping: Firstly: Debit what comes in and credit what goes out. Secondly: Debit all expenses and credit all incomes and gains. Thirdly: Debit the Receiver, Credit the giver.

What is the new credit card debt law? ›

The Consumer Financial Protection Bureau's new regulations will set a ceiling of $8 for most credit card late fees, or require banks to show why they should charge more than $8 for such a fee. The effort will save Americans up to $10 billion a year, the agency estimates.

Pay Off Your Balance

The golden rule of credit card usage is to do everything you can to pay off your entire balance each month. If you can do this, you won't be charged any interest.

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

According to cardholder reports, Bank of America uses a 2/3/4 rule: You can only be approved for two new cards within a 30-day period, three cards within a 12-month period and four cards within a 24-month period.

However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.

Bottom line. If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt.

Maximum credit limit on Credit Cards in India

The Reserve Bank of India (RBI) has not specified an overall maximum limit on Credit Cards. Banks determine the maximum credit limit on a case-to-case basis based on their internal policies and the cardholder's creditworthiness.

In India, non-payment of credit card bills is a civil matter rather than a criminal offense.

Is it legal to ask for 2% extra charge by a shop owner on a card transaction? No. It is not legal. Usually, the bank providing the swipe machine charges 2 to 3% transaction which the merchant has to pay from his profit hence to avoid that loss, the merchant will ask you to pay.