What changed
This Master Circular updates the previous July 2007 circular by incorporating all instructions issued up to June 30, 2008. It consolidates earlier guidelines into one document for easier reference and compliance.
What it means for you
Banks and NBFCs must align their credit card operations with this unified framework, ensuring customer-friendly practices and prudent risk management. The circular emphasizes sound underwriting, fair debt collection, and robust internal controls to protect both customers and portfolio quality.
What you must do
- Review and update your credit card policies to fully comply with all sections of this Master Circular.
- Ensure your DSAs/DMAs and agents adhere to the prescribed customer protection and fair practice norms.
- Strengthen internal control and monitoring systems for credit card operations, including fraud control measures.
- Implement a robust grievance redressal mechanism as outlined in the circular.
- Train staff and agents on the updated guidelines, especially regarding interest rate disclosure and billing practices.
Who it affects
All Scheduled Commercial Banks (excluding RRBs) issuing credit cards, All NBFCs engaged in credit card business, Subsidiaries and affiliated companies of banks/NBFCs involved in credit card operations, Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs) of card issuers
Does this Master Circular replace all previous credit card guidelines?
Yes, it consolidates all instructions issued up to June 30, 2008, into a single reference document. Banks must follow this circular and any subsequent updates.
Are Regional Rural Banks (RRBs) covered under this circular?
No, the circular explicitly excludes RRBs from its scope. It applies only to Scheduled Commercial Banks (excluding RRBs) and NBFCs.
What are the key areas covered in this Master Circular?
It covers card issuance, interest rates and charges, wrongful billing, use of DSAs/DMAs, customer rights protection, grievance redressal, internal controls, fraud control, and penalty provisions.