RBI's New Credit & Debit Card Conduct Directions 2025
Current · Source: Reserve Bank of India · RBI/DOR/2025-26/155 · issued 28 Nov 2025 · ~1 min read
Quick answerRBI issued consolidated directions for commercial banks on credit/debit card issuance and conduct, effective immediately. Covers co-branding, APR disclosure, add-on cards, and business cards. Banks must align policies with these rules.
The rule, in the simplest words
Banks must ask you (the cardholder) if they can use a refund to pay your bill, only if you already paid that bill.
If you say 'yes', the refund goes to your card bill; if you say 'no' or don't reply, the refund goes to your bank account.
If you ask for the refund to go to your bank account, the bank must send it there, no matter what their usual rules say.
How it plays out — a real example
A credit & lending officer in Indore, Priya, gets a call from a customer who paid off a credit card bill for a gold loan fee, but then got a refund for that fee. Priya explains: 'Since you already paid, we need your permission to put the refund on your card. If you say no, we'll send it to your bank account instead.' The customer chooses the bank account, and Priya processes it immediately.
What changed
RBI released a comprehensive set of directions replacing earlier fragmented circulars on credit and debit cards. The new framework defines key terms like Annual Percentage Rate, add-on cards, and co-branded cards, and sets conduct rules for issuance, billing, and loyalty programs. It applies to all commercial banks except SFBs, payment banks, and local area banks.
What it means for you
Banks must now standardize card product disclosures, especially APR calculation and billing cycles, ensuring transparency for cardholders. Co-branding arrangements and business credit cards have clearer regulatory boundaries, reducing ambiguity. Compliance with these directions is immediate, requiring banks to review and update their card policies and customer communication.
What you must do
Review and align all credit/debit card product terms with the new definitions and conduct rules.
Update APR disclosure practices to include all charges under different scenarios.
Revise co-branding agreements to comply with the new framework.
Train compliance and product teams on the immediate effective date and applicability.
Who it affects
Commercial banks (excluding Small Finance Banks, Payment Banks, and Local Area Banks) issuing credit/debit cards, Card product managers and compliance officers, Co-branding partners of banks, Cardholders and business credit card users
❓ Common questions
When do these directions take effect?
The directions come into force with immediate effect from the date of notification, i.e., November 28, 2025.
📜 Read the original circular — full text as issued by RBI
As the cardholder has already cleared the dues, card-issuers shall seek explicit consent of the cardholder to adjust the refund amount in line with the provision stipulated at paragraph 31 of the MD.
• Case I - If the cardholder gives explicit consent, then refund amount shall be adjusted.
• Case II - If the cardholder does not provide the consent or no response is received for adjustment of the refund, then the refund amount will be credited to the bank account of the cardholder in line with paragraph 31.
Further, if the cardholder makes a request for crediting the refund (transaction for which payment has already been made), the same shall be credited back to the bank account of the cardholder irrespective of the cut off defined under paragraph 31.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/155 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Commercial banks (excluding Small Finance Banks, Payment Banks, and Local Area Banks) issuing credit/debit cards, Card product managers and compliance officers, Co-branding partners of banks, Cardholders and business credit card users), your first concrete step on “RBI's New Credit & Debit Card Conduct Directions 2025” is: “Review and align all credit/debit card product terms with the new definitions and conduct rules.” (RBI issued this 28 Nov 2025).
Action required: Revise co-branding agreements to comply with the new framework.
Action required: Train compliance and product teams on the immediate effective date and applicability.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 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=13155&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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