Attention Credit Card Holders: Check Out The Latest RBI Guidelines On Billing Cycles And Repayments

RBI New Credit Card Rules: The Reserve Bank of India (RBI) has introduced modifications to the regulations governing credit cards, granting customers greater flexibility regarding their billing cycles. Under this new regulation, credit cardholders can now adjust their billing cycle multiple times according to their convenience, departing from the previous restriction of a single change imposed by banks and financial institutions.

Changes to Billing Cycles

To take advantage of this flexibility, customers must first settle any outstanding dues on their credit cards. Once this requirement is met, they can initiate a request to change their billing cycle through various channels, such as phone, email, or mobile apps provided by their respective banks. This streamlined process ensures that customers can easily tailor their billing cycles to meet their financial requirements.

Benefits of the New Credit Card Rules

The ability to modify the billing cycle offers several benefits to credit card users. Primarily, it empowers them to select a bill payment date that aligns with their cash flow, ensuring timely payments. Furthermore, by strategically adjusting the billing cycle, customers can maximise the interest-free period on their credit cards, optimising their financial management. Additionally, the newfound flexibility allows individuals to synchronise bill payments across multiple credit cards, simplifying their financial obligations.

Understanding Billing Cycles

A credit card's billing cycle typically spans from the 7th of one month to the 6th of the next. During this period, all transactions made using the credit card are compiled into a statement, which is issued to the cardholder. Depending on the credit card provider and type of card, the billing cycle may range from 27 to 31 days.

Impact of New Credit Card Rules on Customers

Previously, credit card companies unilaterally determined the billing cycle for each cardholder, often causing inconvenience to customers. However, with the revised regulations by the RBI, customers now have the autonomy to adjust their billing cycles multiple times to better suit their preferences and financial obligations. This newfound flexibility enhances customer satisfaction and facilitates smoother credit card management.

Avoiding Pitfalls

The new regulation also serves as a reminder for credit card users to avoid paying only the minimum amount due on their bills. Opting for the minimum payment not only incurs interest on the outstanding balance but also nullifies the interest-free period on subsequent transactions. To mitigate these risks, financial experts recommend paying the entire credit card bill in full by the due date.

Impact on Bill Payment Due Date

Changing the billing cycle also entails a corresponding adjustment in the credit card bill payment due date. This revised due date typically falls between 15 to 20 days from the statement date, providing customers with an extended interest-free period of 45 to 50 days. Within this timeframe, customers can settle their credit card bills without incurring any additional charges, promoting responsible financial management.

New credit card rules in April 2024 for SBI Card, ICICI Bank, Axis Bank and Yes Bank card users

Major credit card issuers have announced changes in their credit card rules that could impact customers. Credit card holders of SBI Card, ICICI Bank, Axis Bank, and Yes Bank will experience the following changes, which will take effect in April 2024:

SBI Credit Card Changes in April: SBI Card has announced that the accrual of reward points on rent payment transactions will be discontinued for specific credit cards starting from April 1, 2024. These cards include AURUM, SBI Card Elite, SBI Card Elite Advantage, SBI Card Pulse, and SimplyCLICK SBI Card. Furthermore, the accumulation of reward points on rent payment transactions for certain credit cards will cease on April 15th.

Changes to YES Bank Credit Cards in April: Starting this April, YES Bank credit cardholders who spend ?10,000 or more in a calendar quarter will qualify for complimentary domestic lounge access.

ICICI Bank Credit Card Changes in April: According to the ICICI Bank website, starting from April 1, 2024, cardholders can enjoy one complimentary airport lounge access by spending Rs. 35,000 in the preceding calendar quarter. Spending in the previous calendar quarter will unlock access for the subsequent quarter. To qualify for complimentary lounge access in the April-May-June 2024 quarter, a minimum spend of Rs. 35,000 in the January-February-March 2024 quarter is required, and likewise for subsequent quarters.

Axis Bank Credit Card Changes in April: Axis Bank has announced that spending on fuel, insurance, and gold/jewelry will no longer be eligible for basic or expedited EDGE REWARD Points. Additionally, the spends threshold for annual fee waiver will exclude expenses in the insurance, gold/jewelry, and fuel categories.

Disclaimer: The above article is for informational purposes only and should not be considered as investment advice. Indiatimes advises its readers to consult their financial advisors before making any financial decisions.

For the latest and more interesting financial news, keep reading Indiatimes Worth.?Click here