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Credit Card: Penalty Only After 3 Days Of Due Date

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The Reserve Bank of India on Thursday said that banks can levy late payment charges only when a credit card account remains ‘past due' for more than three days.

 

Also read: Credit Card: Why it is Important to Know Your Billing Cycle?

Credit Card: Penalty Only After 3 Days Of Due Date

The number of ‘days past due' and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement, the RBI said in the notification.

In order to bring in greater credit discipline as also to provide operational flexibility to credit card issuers, it has been decided that, ‘past due' status of a credit card account for the purpose of asset classification would be reckoned from the payment due date mentioned in the monthly credit card statement.

In case of banks, a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the payment due date mentioned in the statement.

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Read more about: credit card rbi
Story first published: Friday, July 17, 2015, 10:23 [IST]
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