What changed
RBI has amended paragraph 23(5) of the Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct Directions, 2025. The amendment modifies the rules for reporting 'past due' credit card accounts and levying late payment charges.
What it means for you
This amendment affects banks' credit card reporting and late payment charges. Banks must now report 'past due' accounts to credit information companies (CICs) or levy charges only after 3 days. Late payment charges apply to outstanding amounts, not total due amounts, which may reduce revenue for banks.
What you must do
- Review and update credit card reporting processes to reflect the new 3-day threshold for 'past due' accounts
- Modify late payment charge calculations to apply only to outstanding amounts, not total due amounts
- Train staff on the updated rules and procedures
Who it affects
Commercial banks, Credit card issuers, Credit information companies (CICs)
What is the new threshold for reporting 'past due' credit card accounts?
3 days
When do late payment charges apply?
Only to outstanding amounts, not total due amounts
When do the new rules come into effect?
April 1, 2027