What changed
RBI issued the 'Urban Co-operative Banks – Credit Cards and Debit Cards: Issuance and Conduct Directions, 2025' under Section 35A of the Banking Regulation Act, 1949. The directions consolidate and update rules for UCBs on credit, debit, and co-branded cards (excluding co-branding credit cards), effective immediately on November 28, 2025. They include definitions for terms like add-on cards, APR, and loyalty programs, and cover conduct, form factor, and co-branding arrangements.
What it means for you
UCBs must now comply with a unified framework for card issuance and conduct, replacing earlier piecemeal guidelines. This ensures consistency with prudential, payment, and cybersecurity directions. Banks need to review their card products, co-branding deals, and customer communication to align with the new definitions and requirements.
What you must do
- Review and update card issuance policies to comply with the new definitions and conduct rules.
- Ensure co-branding arrangements for debit cards meet the specified guidelines.
- Align billing cycles, APR disclosures, and loyalty programs with the direction's requirements.
- Train staff on the new definitions, including add-on cards, charge cards, and business credit cards.
Who it affects
Urban Co-operative Banks (UCBs), Card-issuing departments in UCBs, Compliance and risk management teams in UCBs, Co-branding partners of UCBs
When do these directions take effect?
The directions came into force immediately on November 28, 2025, the date of issuance.