Date: 2022-06-21Category: Not ApplicableState: Union GovernmentCountry: India
Extension of timeline for implementation of certain provisions of Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022
**Summary:**
RBI/2022-23/74 DoR.AUT.REC.No.4824/01.04.001/2022-23
**Subject:** Extension of Timeline for Implementation of Certain Provisions of Master Direction – Credit Card and Debit Card Issuance and Conduct Directions, 2022
**Date:** June 21, 2022
**Applicability:** All Scheduled Banks (excluding Payments Banks), State Cooperative Banks, District Central Cooperative Banks, and All Non-Banking Financial Companies (NBFCs).
The Reserve Bank of India (RBI) has extended the implementation timeline for specific provisions of the Master Direction – Credit Card and Debit Card Issuance and Conduct Directions, 2022, from July 1, 2022, to **October 1, 2022**, due to representations from industry stakeholders.
The provisions with extended timelines are:
* **Paragraph 6(a)(vi):** Card issuers must obtain One-Time Password (OTP)-based consent from the cardholder to activate a credit card if it remains unactivated for more than 30 days from issuance. If consent is not received, the card issuer must close the account without cost to the customer within seven working days of seeking confirmation.
* **Paragraph 6(b)(v):** Card issuers must ensure that the sanctioned credit limit is not breached without explicit cardholder consent.
* **Paragraph 9(b)(ii):** No capitalization of unpaid charges/levies/taxes for charging compounding of interest.
The implementation timeline for all other provisions of the Master Direction remains unchanged.
**Contact:** Prakash Baliarsingh, Chief General Manager, Department of Regulation, Central Office, Central Office Building, 12th-13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. Tel No: 22661602, 22601000; Fax No: 022-2270 5691.
Key Entities Referenced
Reserve Bank: The Reserve Bank is the central bank of India, responsible for regulating the banking system and monetary policy.
Master Direction Credit Card and Debit Card Issuance and Conduct Directions, 2022: A regulatory document issued by the Reserve Bank of India outlining guidelines for credit card and debit card issuance and conduct.
All Scheduled Banks: Refers to all banks in India listed in the Second Schedule to the Reserve Bank of India Act, 1934, excluding Payments Banks, State Cooperative Banks, and District Central Co-operative Banks
Payments Banks: A type of bank in India that is allowed to accept deposits, offer payments and remittance services, and distribute simple financial products.
State Cooperative Banks: Cooperative banks operating at the state level in India.
District Central Co operative Banks: Cooperative banks operating at the district level in India.
All NonBanking Financial Companies NBFCs: Financial institutions in India that provide banking services without meeting the legal definition of a bank.
Mumbai, Maharashtra: The city in Maharashtra where the Central Office of the Department of Regulation, Reserve Bank is located.
RBI/2022-23/74
DoR.AUT.REC.No.48/24.01.041/2022-23 June 21, 2022
All Scheduled Banks (excluding Payments Banks/State Co-operative Banks and District Central Co-
operative Banks)
All Non-Banking Financial Companies (NBFCs)
Madam/Dear Sir
Extension of timeline for implementation of certain provisions of Master Direction – Credit
Card and Debit Card – Issuance and Conduct Directions, 2022
Please refer to paragraph 1 (b) of the Master Direction – Credit Card and Debit Card – Issuance and
Conduct Directions, 2022 (“Master Direction”) dated April 21, 2022, wherein the Reserve Bank had
prescribed a timeline of July 01, 2022, for implementation of the provisions of the Master Direction.
2. Considering various representations received from the industry stakeholders, it has been decided
to extend the timeline for implementation of the following provisions of the Master Direction to October
01, 2022:
a) Paragraph 6(a)(vi) - Card-issuers shall seek One Time Password (OTP) based consent from the
cardholder for activating a credit card, if the same has not been activated by the customer for more
than 30 days from the date of issuance. If no consent is received for activating the card, card-
issuers shall close the credit card account without any cost to the customer within seven working
days from date of seeking confirmation from the customer.
b) Paragraph 6(b)(v) - Card-issuers shall ensure that the credit limit as sanctioned and advised to
the cardholder is not breached at any point in time without seeking explicit consent from the
cardholder.
c) Paragraph 9(b)(ii) - No capitalization of unpaid charges/levies/taxes for charging/ compounding of
interest.
3. The stipulated timeline for implementation of rest of the provisions of the Master Direction remains
unchanged.
Yours faithfully
(Prakash Baliarsingh)
Chief General Manager
िविनयमन िवभाग, क��ीय कायार्लय, क��ीय कायार्लय भवन, 12व�/ 13व� मंिज़ल, शहीद भगत �संह माग,र् फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए