Source: Reserve Bank of India · RBI/2007-2008/32 · issued 02 Jul 2007 · ~2 min read
Quick answerRBI updated its Master Circular on credit card operations, consolidating guidelines up to June 30, 2007. Banks and NBFCs must adhere to rules on interest rates, billing, customer protection, and fraud control. This ensures sound, prudent, and profitable credit card business aligned with best practices.
What changed
The previous Master Circular from July 1, 2006 was updated by incorporating instructions issued up to June 30, 2007. The new circular consolidates all existing guidelines into a single document, replacing the earlier one. It covers areas like card issuance, interest rates, wrongful billing, use of agents, customer rights, grievance redressal, internal controls, and fraud control.
What it means for you
Banks and NBFCs must strictly follow these updated guidelines to ensure their credit card operations are sound and customer-friendly. The circular emphasizes prudent risk management, especially during economic downturns, and mandates fair practices in debt collection and customer confidentiality. Non-compliance could invite penalties from RBI.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and align your credit card policies with the updated Master Circular, covering all sections from issuance to fraud control.
Ensure DSAs/DMAs and other agents comply with RBI's fair practices code, especially in debt collection and customer privacy.
Strengthen internal control and monitoring systems to detect and prevent fraud in credit card operations.
Update your grievance redressal mechanism to handle customer complaints effectively and within stipulated timelines.
Who it affects
All scheduled commercial banks (excluding RRBs) issuing credit cards, NBFCs engaged in credit card business directly or through subsidiaries, Direct selling agents (DSAs) and direct marketing agents (DMAs) of banks/NBFCs
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the purpose of this Master Circular?
It provides a framework of rules, regulations, and best practices for banks and NBFCs to run their credit card business on sound, prudent, and profitable lines, ensuring alignment with customer protection standards.
Does this circular replace previous guidelines?
Yes, it updates and consolidates all instructions issued up to June 30, 2007, replacing the earlier Master Circular dated July 1, 2006.
What are the key areas covered in this circular?
Key areas include card issuance, interest rates and charges, wrongful billing, use of agents, customer rights (privacy, confidentiality, fair debt collection), grievance redressal, internal controls, fraud control, and RBI's right to impose penalties.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to the Master Circular No. DBOD.FSD.BC.17/24.01.011/2007-08 dated July 2, 2007”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2386: DBOD.FSD.BC.17/24.01.011/2007-08 — "Master Circular on Credit Card Operations of Banks" dated July 2, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/32
DBOD.FSD.BC.17 / 24.01.011/ 2007-08
July 2, 2007
Aashadha 11, 1929 (Saka)
All Scheduled Commercial Banks /NBFCs
(Excluding RRBs)
Dear Sir
Master Circular on Credit Card Operations of banks
Please refer to the Master Circular No. DBOD.FSD.BC.10/24.01.011/2006-07 dated July 1, 2006 on credit card operations of banks consolidating the instructions/guidelines issued to banks till June 30, 2006. The Master Circular has been suitably updated by incorporating instructions issued upto June 30, 2007. The Master Circular has also been put on the RBI website (http://www.rbi.org.in). All the credit card issuing banks/NBFCs should adhere to these guidelines strictly.
Yours faithfully
( P.Vijaya Bhaskar )
Chief General Manager
Contents
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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/32 · issued 02 Jul 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3646&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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