The card holder will be paid Rs500 per day in case of delay

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New Delhi: The Reserve Bank of India (RBI) on Thursday issued a new set of guidelines regarding the issuance and operations of credit and debit cards. The instructions known as Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Instructions, 2022, will come into force on July 1, 2022.

The provisions of these instructions relating to credit cards apply to all regular banks (excluding payment banks, state cooperative banks and central district cooperative banks) and to all non-bank financial companies (NBFC) operating in India.

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By following the instructions, the card issuer will eventually pay a fine to the cardholder if there is a delay in closing the credit card account.

Here’s what you need to know about credit card closure

1) The RBI has ordered that any request to close a credit card should be honored within seven working days by the credit card issuer, subject to payment of all dues by the cardholder.

2) If a credit card has not been used for a period of more than one year, the process of closing the card will be initiated after notifying the cardholder.

3) Also note that the cardholder must be immediately informed of the closure by email, SMS, etc. closing the credit card.

4) The credit card issuer must provide multiple channels for the submission of the credit card account closure request.

5) Some of these channels include helpline, dedicated email id, interactive voice response (IVR), prominent link on website, internet banking, mobile app or any other mode.

6) The card issuer must not insist on sending a closure request by post or by any other means that may delay the receipt of the request.

7) If the card issuer fails to process the closure of the credit card within seven working days, they must pay a penalty of Rs500 per day of delay to the customer until the account is closed, provided that there is no outstanding amount on the account.

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