RBI New Guidelines For Credit Card. The Reserve Bank of India (RBI) has recently issued new guidelines for credit card payment and new chargeable interest rates to protect customers who may end up paying more than their fair share in charges. These new guidelines apply to all banks permitted to issue credit cards.
So, to comply with new guidelines, a merchant should ensure they get a complete authorization response message from their acquirer before they start to process the credit card payment. Any error messages in authorization response must be resolved immediately, and any partial authorization response message shall not be used for further processing credit card payments. These changes will directly impact credit card payments made through MDR networks such as MasterCard and Visa.
RBI New Guidelines For Credit Card Payment:
Under new regulations announced by the Reserve Bank of India, individuals and MSMEs cannot get credit cards for any purchase of goods or services affected immediately. The RBI’s move aligns with its stated policy to discourage non-essential consumption. Under the new guidelines, only government sector companies and NBFCs can issue credit cards. Business-to-business transactions can be made via credit card, but purchases from individual customers will be banned.
The latest guideline will significantly impact consumers as banks will now start; levying penalty charges for users who fall below 80% of their minimum payment threshold. If you are using your credit card, it is essential that you understand; these new regulations before you make any future transactions.
The Reserve Bank of India recently released new guidelines regarding credit card; payment policies to help consumers make informed decisions before applying for a credit card. Banks must now disclose in fine print that penalty interest rates are applicable if a minimum monthly payment is not made on time, and they must reveal charges for cash transactions, including withdrawal fees and ATM usage fees. Penalties for exceeding one’s credit limit have also been introduced.
Given that a large number of people have a high proportion of credit card debt; it is evident that these new policies are aimed at bringing down consumer indebtedness levels. This will ensure more disposable income for households to spend on other; essential goods and services, eventually resulting in increased GDP growth. The government could lower tax rates or increase public spending, leading to higher disposable incomes and more robust economic growth.
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