What changed
RBI replaced the 2012 master circular with a consolidated version covering credit, debit, and rupee-denominated co-branded prepaid cards. The scope now explicitly includes NBFCs issuing credit cards. Instructions on credit card operations of banks and NBFCs as well as guidelines on issuance of debit cards and co-branded pre-paid cards by banks issued up to June 30, 2013 have been consolidated in this Master Circular.
What it means for you
Banks and NBFCs must treat this circular as the single reference for card operations, ensuring uniform compliance. It reinforces customer rights, fair practices in debt collection, and fraud control. Lenders need to review their card policies to match the updated guidelines.
What you must do
- Review and align your card issuance policies with this master circular's provisions.
- Ensure NBFCs issuing credit cards follow the same rules as banks.
- Update internal controls and monitoring systems for fraud prevention.
- Verify that KYC/AML norms are strictly applied for debit and prepaid cards.
- Train staff on customer grievance redressal and debt collection fair practices.
Who it affects
All scheduled commercial banks (excluding RRBs) issuing credit, debit, or prepaid cards, NBFCs engaged in credit card business, Bank subsidiaries and affiliated companies handling card operations
Does this circular apply to NBFCs issuing credit cards?
Yes, the instructions on credit card operations apply mutatis-mutandis to NBFCs issuing credit cards.
What types of cards are covered under this master circular?
It covers credit cards, debit cards, and rupee-denominated co-branded prepaid cards issued by banks.
Are regional rural banks (RRBs) included in the scope?
No, RRBs are excluded from the scope of application for scheduled commercial banks.