Punjab Newsline | New Delhi
The Reserve Bank of India (RBI) has introduced new guidelines that offer significant relief to credit card users. Under the revised rules, customers will now get extra time even after missing the due date without immediately attracting penalty charges.
As per the RBI’s new framework, banks will not be allowed to impose late payment charges immediately after the due date is missed. Instead, a mandatory grace period of 3 days will be provided to customers.
For example, if your credit card bill due date is the 5th of a month, you will now be able to make the payment without any late fee until the 8th. During this period, no additional charges will be levied.
Charges Only on Outstanding Amount
The new rules also state that late payment fees will be calculated only on the outstanding balance, not on the total bill amount. This change is expected to reduce the overall interest burden on customers.
Impact on Credit Score
An account will be marked as past due only after the completion of the 3-day grace period. If payment is not made even after this window, it may affect the customer’s credit score. While the new rule provides relief, timely payment is still recommended to avoid financial penalties and credit score damage.
Advance Notice for Rule Changes
RBI has also directed banks to inform customers at least one month in advance if there are any changes in late fees or related policies.
Overall, the new guidelines are seen as a customer-friendly move, offering flexibility to credit card users, though timely repayment remains the best financial practice.
