3 New Credit Card Rules From October 1 : All You Need To Know

The month of October is going to start. With the new month, there are also changes in many rules. Similarly, from October, changes will be seen in the rules related to credit cards. In fact, the Reserve Bank of India (RBI) has issued new norms for issuing credit and debit cards. Including the rule for cancellation of credit cards. Know the three rules related to credit cards

Credit card issuers have to first obtain one-time-password (OTP) based consent if a cardholder hasn’t activated their card for more than 30 days from the issued date. The credit card issuer must deactivate the card without charging any extra fee within seven working days in case the cardholder declines the request to activate the card.

Now credit card issuers can’t increase the credit card limit of a customer at their own discretion. It must be approved by the cardholder and be notified once it’s been done.

Earlier, holders only receive messages regarding credit limit increases. No permission was asked before hiking the limit. After October 1, 2022, it becomes very stringent to not increase the credit line limit without the cardholder’s written consent.

Earlier, third-party payment apps use credit and debit card numbers, the holders’ names, and CVVs to make payments from banks to the platforms. RBI has come up with a card tokenization system to make such transactions safe and secure by encrypting the credit card numbers.

Now third-party payment apps can’t simply use customers’ credit card numbers for transactions. Every credit card number will be encrypted into the token number that will be used for transaction purposes.