If you frequently use credit cards or are considering getting one, you may encounter a situation where your consumer rights may be violated. Therefore, it becomes important for you to know the different credit card rules to protect your rights.

The Reserve Bank of India (RBI) has imposed many rules and regulations to protect the interests of credit card users. These rules will protect you against cases of fraud, privacy violations, data leaks, etc. Check out six important credit card rules from RBI aimed at protecting a credit card user.

1. Interest rate

The RBI has demanded that interest rates on credit cards be transparent and reasonable. Banks and NBFCs are not allowed to charge exorbitant interest rates or hidden charges. Banks are required to set a cap rate for interest and other fees. However, they may charge differential interest rates based on the credit card user’s payment history and must be transparent about this.

2. Accurate billing

Banks and NBFCs must ensure that credit card statements must be generated on time and in a fair manner. Credit card users can request justification from issuers if they receive an incorrect bill. In such a case, the credit card issuer will be required to provide an explanation for the inaccurate bill. They may also be asked to provide documentary evidence. Banks and NBFCs will have 60 days to resolve the issue. RBI has advised issuers to provide credit card statements online to avoid billing delays.

3. Credit Card Debt Collection Process

According to RBI As per the guidelines, banks and NBFCs must recover debts fairly and not compromise the quality of customer service. Even if they outsource debt collection, they must ensure that the third party does not use unfair practices, maintains the confidentiality of customer files, respects customer privacy and adheres to fair debt collection practices. debt recovery. Banks and NBFCs cannot use violence, intimidation or threats to recover debts.

4. Privacy Concerns

Banks and NBFCs are not allowed to issue unsolicited cards to customers without their consent to protect privacy, as per RBI guidelines. In the event that an unsolicited card is issued without consent, the issuer will have to cancel the action and will have to pay a penalty of twice the value of the canceled fees. RBI provides similar protection for credit card users as well.

If a bank or NBFC wants to upgrade a credit card, it must first inform the user and explain the terms and conditions. They can only upgrade or increase the credit limit with a user’s consent.

According to the RBI, banks and NBFCs should join the Do Not Call Registry (DNCR). This is a contact list of credit card users who have not given permission to receive marketing messages or calls from banks or NBFCs. This measure is intended to protect the privacy of a credit card user.

5. Identity and Privacy Protection

Protecting a card user’s identity and privacy is RBI’s top priority. Therefore, banks and NBFCs are not allowed to reveal the information available to users from the time of account opening or credit card issuance without obtaining specific consent from the user. Credit card issuers may not use a user’s information for marketing purposes. Additionally, banks and NBFCs can label a card user as a defaulter by informing them in advance. Once informed, the credit card user has a notice period to pay their bills.

6. Reporting fraud

If your credit card has been used fraudulently, you must report it immediately to your issuer. You will not be held responsible for fraud if you notify your issuer within three business days. However, you may be held liable for fraud if it occurs due to your negligence or if the reporting delay is more than seven business days, in accordance with your bank’s approved policy.

In conclusion, RBI imposes certain norms to protect the rights of a user. As a credit card user, you should be aware of the rules and regulations that protect your rights as a consumer. If any of your rights are violated, these rules provide a practical remedy to address your concerns.