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

1. Start date

This rule takes effect immediately.

2. Who is covered

This rule applies to commercial banks, called 'banks' here.

3. Meaning of Commercial Banks

Commercial Banks here means normal banks and SBI, not Small Finance or Payment Banks.

BankPulse example. The word banks on this page has a narrow meaning. It covers banking companies, the corresponding new banks and the State Bank of India. It leaves out small finance banks, payment banks and local area banks.

4. Renewal is not unsolicited

Issuing a card on renewal or replacement 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. 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.

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Credit information already reported for an inactivated credit card must be withdrawn at once.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.

2. Debit card condition

Banks can issue debit cards only to customers with a savings or current account.

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.

3. Ombudsman route

A customer may lodge a complaint with the Ombudsman of the Reserve Bank.

1. Older rules repealed

This document repeals RBI's earlier instructions on credit and debit cards for commercial 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.