The Reserve Bank of India (RBI) is giving credit card users a bit of breathing room. In its latest amendment to credit card rules, the regulator has introduced a small but meaningful change: a short delay in payment won't immediately cost you.
A 3-day cushion for cardholders
As per the updated norms, "card-issuers shall report a credit card account as 'past due'… only when a credit card account remains 'past due' for more than three days."
In simple terms, if you miss your due date by a couple of days, your account won't instantly be tagged as overdue.
That is indeed a welcome shift for anyone who's ever been late by just a day or two.
No more charges on the full bill
The RBI has also taken aim at how late fees are calculated. It clearly states that "late payment charges and other related charges shall be levied, only on the outstanding amount after the due date, and not on the total amount due."
That means you won't be penalised on amounts you may have already paid, making the system a lot fairer.
What stays the same
There's one important detail to keep in mind. The RBI notes that "the number of 'days past due'… shall, however, be computed from the payment due date mentioned in the credit card statement."
What did the RBI say?
The Amendment Directions shall modify the paragraph 23(5) as below: "Card-issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days. The number of 'days past due' and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement, as specified under the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026 amended from time to time. Late payment charges and other related charges shall be levied, only on the outstanding amount after the due date, and not on the total amount due."
This update comes after the RBI reviewed industry feedback, noting that "feedback received on the draft Directions has been examined and consequent modifications… have been suitably incorporated."
The detailed amendment also aligns with wider regulatory directions issued under Section 35A of the Banking Regulation Act, 1949.
When it kicks in
The rules won't apply immediately. As the RBI confirmed, "the above amendments shall come into force from April 01, 2027."
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