Nowadays, everyone has a credit card, and you probably do too. Rising spending and the convenience of instant credit card payments are making them popular.

When used correctly, they're convenient. However, if bills aren't paid on time or excessive spending occurs, they can become a problem. This raises the question: who will be responsible if the cardholder dies unexpectedly and the bill remains unpaid?

What happens if the cardholder dies?
After the cardholder's death, the outstanding balance can be recovered from their estate or bank accounts. The bank cannot directly pursue family members. If the cardholder has insurance or assets, the bill can be paid from those assets.

What do the rules say?
A credit card is a loan that doesn't require any collateral. This means the bank issues the card based solely on your credit profile and income. According to Reserve Bank of India regulations, the responsibility for this loan rests solely with the cardholder. Therefore, if the cardholder dies, the bank cannot collect the outstanding balance from any family member or heir.