Reserve Bank of India (Small Finance Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025
UR
- Applies toSmall finance banks
- StatusIn force
- RBI text changedRBI updated this document on October 1, 2026. BankPulse is re-reading it. BankPulse checked 46 points against RBI's new text on 2 October 2026. 45 stand. 1 are marked below and are being re-read.
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length46 points in 5 sections · 5 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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23 of the 46 points name no product and bind every product. All products.
Numbers to remember
| ₹100 crore | Banks need a net worth of ₹100 crore or more to offer credit cards, with board approval. RBI Para 7 |
| seven working days | An unactivated card must be closed free of cost within seven working days, if the customer gives no consent. RBI Para 11(6) |
| ₹500 | Late closure of a card costs the bank ₹500 per day, paid to the customer. RBI Para 19 |
| 30 days | Closure of a card account must be updated with credit information companies within 30 days. RBI Para 20 |
| three days | Banks can charge late fees only after a bill is three days overdue. RBI Para 23(5) |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
Do it
1. What a charge card is
A charge card must be paid in full on the due date. No credit rolls over.
2. Minimum amount due
The minimum amount due is the least a cardholder must pay to avoid an overdue bill.
Background
3. Start date
These rules came into force at once, on the day RBI issued them.
4. Who is covered
These rules bind every small finance bank.
5. What this book covers
This book covers how credit, debit and co-branded cards are issued and run.
6. Read with other rules
They are read with RBI's prudential, payment and cyber security directions on cards.
7. Add-on card sits inside
An add-on card sits inside the primary cardholder's own limit and liability.
8. Annual percentage rate
The annual percentage rate is the yearly cost of credit, interest and all charges together.
9. What a billing cycle is
A billing cycle is the time between the closing dates of two consecutive bills.
10. Business card is not personal
A business credit card is for business spending. It is not for personal use.
11. Who a cardholder is
A cardholder is the person the card was issued to, or one authorised to use it.
12. Reward programmes defined
A reward programme gives coupons, points, discounts or cash back having money value.
13. What a co-branded card is
A co-branded card is issued jointly and carries the names of both partners.
14. Convenience fee
A convenience fee applies where a card is a payment form not ordinarily accepted.
15. Corporate card liability
On a corporate card the liability may rest with the company, the employee, or both.
16. What a credit card is
A credit card carries a pre-approved revolving credit limit for goods, services or cash.
17. Credit limit defined
The credit limit is the most revolving credit a cardholder may use on the account.
18. What a debit card is
A debit card is tied to a savings or current account and draws on that account.
19. Interest free period
The interest free period holds only if the whole outstanding is paid by the due date.
20. Most important terms
The most important terms set out the duties of both the card issuer and the holder.
21. Total amount due
The total amount due is the full sum payable on that cycle's statement.
22. Renewal is not unsolicited
Renewing or replacing an existing card is not treated as an unsolicited card.
Chapter II. Conduct of Credit Card Business
Must know
1. Credit card entry bar
Banks need a net worth of ₹100 crore or more to offer credit cards, with board approval.
2. Unactivated card closure
An unactivated card must be closed free of cost within seven working days, if the customer gives no consent.
3. Over-limit consent
Banks cannot let a customer go over their credit limit without the customer's explicit consent.
4. Seven-day closure rule
Banks must close a credit card within seven working days of the customer's request.
5. ₹500-a-day penalty
Late closure of a card costs the bank ₹500 per day, paid to the customer.
BankPulse example. A cardholder asks to close the card and the account has nothing outstanding. The closure takes 10 days longer than it should. The customer is owed ₹500 for each of those days, which is ₹5,000.
6. Thirty days to update
Closure of a card account must be updated with credit information companies within 30 days.
7. No fixed minimum due
The minimum amount due must at least cover the month's interest and charges, so the balance never grows.
8. Three-day late fee rule
Banks can charge late fees only after a bill is three days overdue.
9. Billing dispute deadline
Banks must answer a billing dispute within 30 days.
Do it
10. Board-approved card policy
Each bank must have a board-approved policy for issuing and running credit cards.
11. Withdraw the credit report
Credit information already reported for an inactivated credit card must be withdrawn at once.
12. Quote the annual rate
Card issuers must quote annualised percentage rates for purchases, transfers, cash advances and default.
Background
13. Unsolicited card penalty
Sending an unsolicited card that gets billed costs the bank twice the charges as penalty.
14. Charges outside the limit
Interest and fees are not counted when working out limit usage or overlimit charges.
15. Unused card closure
A card unused for over a year starts a closure process, after the customer is told.
Chapter III. Issue of Debit Card by Banks
1. Debit card is optional
A bank cannot force a debit card on a customer or tie it to another facility.
Chapter V. Co-branding Arrangement
1. Co-branded cards
Banks don't need RBI's prior approval to launch co-branded cards, if they meet set conditions.
Chapter VI. General Guidelines for Credit and Debit Cards
1. 30-day notice rule
Banks must give 30 days' notice before changing card terms.
2. Grievance officer on bills
Every card bill must list the grievance officer's name and contact details.
Chapter VIII. Repeal and Other Provisions
1. Older rules repealed
This document repeals RBI's earlier instructions on credit and debit cards for small finance banks.
2. Old actions preserved
Anything already done under the old rules stays governed by those old rules.
3. Approvals carried over
Approvals given under the cancelled rules are now treated as given under these rules.
4. Other laws still apply
These Directions add to other laws. They do not replace any of them.
5. RBI's reading final
RBI's interpretation of any part of these Directions is final and binding.
The same subject for other kinds of institution
The same subject for other kinds of institution.
RBI credit card and debit card rules for regional rural banks
RBI credit card and debit card rules for urban co-operative banks
Other RBI rules for small finance banks
RBI compliance officer and compliance function rules for small finance banks 2026
RBI credit bureau reporting rules for small finance banks 2025
RBI customer service and fair conduct rules for small finance banks 2025
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