RBI brings new credit, debit card rules

The Reserve Bank of India (RBI) has introduced a new set of rules related to debit and credit cards, overhauling the current guidelines for banks and non-banking finance organizations (NBFCs). The RBI has noted in its order that the new guidelines are applicable from July 01, 2022. 

RBI has also introduced penalties to be levied on banks and NBFCs in the event of non-compliance with the new rules. For example, a penalty will be collected on banks for issuing or updating credit or debit cards of clients without their consent. 

RBI has allowed banks to embrace the credit card business, given they have a net worth of ₹100 crores. Such banks can attempt the business either all alone or in association with other card-issuing banks or NBFCs. 

RBI has additionally permitted Urban cooperative banks (UCBs) with a net worth of ₹100 crores to set up credit card businesses subsequent to taking approval from the regulator. Be that as it may, such UCBs ought to have a core banking platform. Additionally, UCBs are not permitted to give co-branded credit cards, RBI noted. 

Additionally, Regional Rural Banks (RRBs) with a net worth of ₹1000 crore are currently allowed to give credit cards in collaboration with their sponsor bank or other banks.