Credit cards are powerful financial tools — but they belong to you, and the Reserve bank of India (RBI) has issued clear rules to protect your rights, ensure transparency, and prevent banks from taking unfair actions. The RBI’s Credit Card and Debit Card – Issuance and Conduct Directions, 2022 and related updates enforce these protections.

1. You Must Give Consent Before a Card Is Issued

Rule: Your bank or card issuer cannot issue you a credit card without your prior, explicit consent.

• This means no unsolicited cards appearing in your mailbox or inbox without permission.
• If you receive an unsolicited card, don’t activate it and don’t share any OTP — the card issuer must then close it without any cost to you.

👉 Why it matters: You should never be charged fees or have a credit account opened in your name without your consent.

2. You Control Card Activation

Even after a card is sent to you, it should not be activated automatically. The RBI mandates that card issuers must obtain your consent — typically via OTP or another confirmation — before activation. If there’s no consent within the specified time, the bank must close the card account for free.

👉 Bottom line: You decide when someone begins using your credit card — not the bank.

3. You Can Change Billing cycle at Least Once

Under RBI rules, you are entitled to modify your credit card billing cycle at least once at your convenience. This helps you data-align due dates with salary or cash flow, making repayment easier.

👉 Meaning: You’re not stuck with a billing date that doesn’t suit your schedules — you can request a change.

4. Banks Must Let You Choose the Card Network

The RBI has directed that card issuers must provide customers with the option to choose from multiple card networks (like Visa, MasterCard, RuPay, etc.) when issuing a card. This choice must also be available at renewal for existing cards.

👉 Why this protects you: You can choose networks that data-align with benefits you prefer (e.g., international acceptance, UPI support, rewards ecosystem).

5. Banks Must Respect Closure Requests

If you decide to close your credit card, the issuer must act within 7 working days, provided you have paid all dues.
Card issuers must provide multiple channels (call, email, app) for closure requests.

👉 You control your card’s lifespan, and the bank can’t stall unnecessarily.

6. No Fees Before Activation

Banks are not allowed to charge fees before you activate your credit card.
If a fee is shown before activation — that’s against the spirit of RBI rules.

👉 In short: You shouldn’t pay for a card you haven’t agreed to use.

7. Fair Treatment in Disputes

While these specific RBI rules are mostly about issuance and conduct, courts have also stepped in to protect customers from unfair bank actions, such as charging disputed amounts or using recovery agents aggressively. In one case, a bank was fined for harassment related to unauthorized transactions, and the RBI’s grievance mechanism data-faced calls to be strengthened.

👉 Takeaway: If a dispute arises, banks must respond fairly — failure to do so can lead to penalties or RBI action.

8. Your Data Cannot Be Shared Without Consent

RBI guidelines also restrict the sharing of your cardholder data without your explicit consent. This protects privacy and prevents misuse of your financial information.

👉 Your data belongs to you — not the bank or third parties.

9. Unused Cards Can Be Closed, But on Notice

RBI rules allow banks to close unused cards (no transactions for over a year) only after notifying you. This increases safety by removing dormant accounts that could be misused.

👉 Still, it must be done with notice — not silently.

Final Takeaway: You’re in Control

Thanks to RBI’s regulations:

✔ You must consent before a card is issued.
✔ Fees before activation are not allowed.
✔ You can choose the card network and change billing cycles.
✔ Cards can be closed quickly at your request.
✔ Your data and rights are protected.

These rules make it clear: the card belongs to the customer — not the bank.

 

Disclaimer:

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