The Reserve Bank of India (RBI) has directed banks to report past dues and levy late payment penalty on credit card customers, only if the payment has been due for more than three days.
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RBI said in a notification: "Banks shall report a credit card account as ‘past due’ to credit information companies (CICs) or levy penal charges, viz., late payment charges, etc., if any, only when a credit card account remains ‘past due’ for more than three days."
The number of days past due and late payment charges will be calculated from the payment due date mentioned in the credit card statement.
If the minimum amount due is not completely repaid within 90 days from the due date mentioned in the card statement, the credit card account will be treated as a non-performing asset (NPA).
According to RBI, the new measures are aimed at offering more credit discipline as well as operational flexibility to credit card issuers.
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By GlobalData
