Reserve Bank of India (Small Finance Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025

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.

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.

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. Minimum due floor

The minimum amount due must not be less than ₹250 so that interest is not capitalised.

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.

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.

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.

1. Debit card is optional

A bank cannot force a debit card on a customer or tie it to another facility.

1. Co-branded cards

Banks don't need RBI's prior approval to launch co-branded cards, if they meet set conditions.

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.

1. Older rules cancelled

This document cancels the earlier conduct rules for these institutions.

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.