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.
- Ensure add-on card issuance follows predefined relationship criteria and liability terms.
- 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
When do these directions take effect?
The directions come into force with immediate effect from the date of notification, i.e., November 28, 2025.