What changed
RBI extended the timeline for three provisions of the Master Direction on Credit Card and Debit Card Issuance and Conduct from July 1, 2022, to October 1, 2022. The affected rules are: seeking OTP-based consent for activating cards dormant over 30 days, ensuring credit limits are not breached without explicit consent, and prohibiting capitalization of unpaid charges for interest compounding. All other provisions of the Master Direction remain effective from July 1, 2022.
What it means for you
Banks and NBFCs get an additional three months to comply with these three specific requirements, easing operational pressure. The extension allows more time to update systems for OTP consent workflows, credit limit monitoring, and interest calculation changes. However, the rest of the Master Direction's rules are still due on July 1, so overall compliance readiness cannot slacken.
What you must do
- Update internal systems and processes for the three delayed provisions to be fully compliant by October 1, 2022.
- Ensure all other provisions of the Master Direction are implemented by the original July 1, 2022 deadline.
- Communicate the revised timeline to relevant teams including IT, operations, and customer service.
- Review customer consent mechanisms for credit card activation and credit limit changes to align with the new rules.
Who it affects
All Scheduled Banks (excluding Payments Banks and State/District Co-operative Banks), All Non-Banking Financial Companies (NBFCs) issuing credit cards
Which specific provisions have been delayed?
Three provisions: OTP-based consent for activating cards dormant over 30 days (para 6(a)(vi)), explicit consent for credit limit breaches (para 6(b)(v)), and no capitalization of unpaid charges for interest compounding (para 9(b)(ii)).
What is the new deadline for these provisions?
The new implementation date is October 1, 2022, instead of the original July 1, 2022.
Are any other parts of the Master Direction also delayed?
No, only these three provisions have been extended. All other requirements of the Master Direction remain effective from July 1, 2022.