New credit card rules w.e.f. from 01 July 2022

New credit card rules from 01 July 2022

New credit card rules from 01 July 2022

RBI issued a circular in Apr 2022 named ‘The Master Direction on Credit Card and Debit Card Issuance and Conduct Directions, 2022’. The guidelines will come into effect from 01 July 2022. The guidelines apply to all banks and NBFCs. Most rules will be implemented on 01 July 2022, but relaxation has been provided for three rules to be implemented by 01 Oct 2022. This blog discusses the rules to be implemented from 01 July 2022 and how the new rules will benefit the consumers. 


No more wrong bills
As per the new rules, you can dispute any charge, and the credit card company has to respond to you within 30 days. Also, the responsibility to document the dispute and the resolution rests with the credit card company. Also, as long as the transaction is under dispute, the credit card company cannon levy interest on the transaction.

No more delayed bills

Also, the RBI has made it mandatory for all credit card issuers to ensure that there is no delay in raising the bill and sending it to the customer for payment. Also, the customer should have sufficient time to pay the bill before interest is levied. The credit card companies must ensure that the customer receives the billing statement on time. The customer will get at least 15 days to pay the bill before any interest is levied.

Billing cycle

Also, the card issuers have to streamline the billing cycle. The billing cycle will now start from the eleventh of the previous month to the tenth of the current month. This will streamline the billing cycle for all credit card issuers.


Option to change the billing cycle

Also, if the customer wants to change the billing cycle, the customer will get a one-time chance to change his/her billing cycle. This is to help the customers to manage their finances and avoid late payment fees.

The refund amount is to be adjusted from the due payment

Suppose you dispute a transaction after the generation of the statement. Earlier, you needed to pay the amount, and the refund amount was adjusted in the next billing cycle. But with the new rules, your refund amount will be adjusted to the due amount if the refund is credited before the payment due date. Thus, you can save on the disputed transaction amount. 

No Unsolicited credit card

The RBI has issued strict rules to ensure you do not get unsolicited credit cards. If you are issued any unsolicited credit card, or if your credit card is upgraded without your consent, the credit card company will need to immediately reverse the charge and pay you a penalty of twice the reversed charges. This will hinder the issuance of unsolicited credit cards.


These new credit card rules are expected to help consumers. These rules will put the power in the hands of the consumers and save them from fraudulent charges and unsolicited credit cards. Also, the billing cycle rules will help consumers streamline their finances according to their income cycles. The customers will also get the bill on time and the time to pay the bill.



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