RBI Imply New Rule For Credit Cards
The Reserve Bank of India (RBI), has clearly stated a new guideline for convenience of credit card holders. The central Bank, showing concern about the convenience of credit card customers, issued a new regulation in which the bank stated that the customers should be provided an option to modify the date of their billing cycle as per their necessity for once. The new guideline will be in effect from July 1, 2022.
Billing Cycle is the time period during which you spent and for which your bill is generated. And all the transactions that took place during the billing cycle will be shown in the statement. Generally such a system is needed for the financial products for which the monthly payment is made. The due date for the payment will be set after 15 to 25 days of your billing cycle’s ending date.
For example: if your billing cycle is between April 11, 2022 to May 10, 2022. Then your payment due date can be set on or before 4-5 June, 2022.
From the starting date of your billing cycle till the due date of your payment is the interest free duration, for which the credit cards are famous. However, payments that are made after the due date attract penalties, interest and also a major impact on your credit score.
Impact of New RBI Guideline
When the new guideline provided by The Reserve Bank of India (RBI) will come into effect, then credit card holders can choose a suitable time period for their billing cycle so that the due date will be set on the day which suits their cash inflows. For example if you want your bill due date to arrive before the fifth or seventh of every month then RBI’s new guideline will help you.
This RBI rule is going to benefit most the type of customers who have multiple credit cards in their possession. By modifying their billing cycle they can manage all their due dates either on one single day or as per their monthly financial condition.
Pioneer Legal, Partner, Mayank Mehta said, “The flexibility now offered is a welcome change and provides significant benefit to the cardholders in managing their finances.”