MUMBAI: The RBI on Tuesday gave three extra months to banks and NBFCs issuing credit score and debit playing cards to adjust to sure norms together with activation of playing cards with out consent of clients.
In view of varied representations acquired from the business stakeholders, the RBI has determined to increase the timeline for implementation of sure provisions of the course to October 1, 2022.
One of the provisions on which extra time has been given pertains to activation of credit score card. According to the grasp course, card issuers should search one-time password (OTP) -based consent from the cardholder for activating a credit score card, if the identical has not been activated by the shopper for greater than 30 days from the date of issuance.
If no consent is acquired for activating the card, card issuers ought to shut the credit score card account with none price to the shopper inside seven working days from date of looking for affirmation from the shopper.
Further, card issuers have been requested to make sure that the credit score restrict as sanctioned and suggested to the cardholder will not be breached at any level of time with out looking for specific consent from the cardholder by July 1. In this case additionally, they’ve now been given time until October 1.