What changed
The earlier GCC Scheme (2013) has been superseded and renamed as 'General Credit Card (GCC) Facility'. The new facility must be issued as a credit card conforming to the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. Existing debit cards issued under the old scheme remain valid only until their expiry or repayment of the existing credit facility, whichever is earlier.
What it means for you
Banks must now issue GCCs strictly in credit card form, not debit cards, for working capital to eligible non-farm entrepreneurial activities under priority sector. This aligns GCC with modern card regulations and ensures uniform terms via board-approved policies. Lenders need to update product documentation, IT systems, and reporting processes to comply with the new framework and the Master Direction.
What you must do
- Rename your GCC product to 'General Credit Card (GCC) Facility' and update all customer-facing materials.
- Ensure GCC issuance complies with the Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions, 2022.
- Review and align board-approved policies for GCC terms and conditions with the new RBI framework.
- Update internal systems to report GCC data as per RBI's latest reporting instructions.
- Communicate with existing debit card holders under the old scheme about the transition and validity period.
Who it affects
Scheduled Commercial Banks (excluding Payments Banks), Scheduled Urban Co-operative Banks, MSME borrowers availing working capital for non-farm entrepreneurial activities, Priority sector lending teams
What is the key difference between the old GCC Scheme and the new GCC Facility?
The old scheme allowed debit cards, but the new facility mandates GCCs be issued only as credit cards conforming to the 2022 Master Direction. The name has also changed from 'Scheme' to 'Facility'.
Are existing debit cards issued under the 2013 GCC Scheme still valid?
Yes, they remain valid until their expiry or until the repayment of the existing credit facility, whichever is earlier. No new debit cards can be issued under the old scheme.
Who is eligible for the new GCC Facility?
Individuals or entities sanctioned working capital facilities for non-farm entrepreneurial activities that qualify under priority sector guidelines. Banks eligible to issue credit cards under the Master Direction can offer this facility.