RBI Credit Card & Debit Card Directions: A Working Checklist
What card issuers actually need to get right on billing, disputes, consent, and closure.
RBI's Master Direction on Credit Card and Debit Card, Issuance and Conduct came into force on April 21, 2022, and has been amended since, most notably in March 2024. It applies to all Scheduled Banks (excluding Payments Banks, State Co-operative Banks, and District Central Co-operative Banks) and to NBFCs, with NBFCs needing prior RBI approval to issue cards at all. This is a working reference, not legal advice.
What card issuers need to have in place
| Requirement | What it covers |
|---|---|
| Written or digital consent | Required to issue a new card, upgrade an existing one, or raise a credit limit; RBI must be notified when digital consent is used in place of written |
| MITC, sent separately | Most Important Terms and Conditions must be sent on their own, not buried in the welcome kit, and reissued whenever a term changes |
| Billing statement transparency | The exact method used to calculate interest on the outstanding balance must be shown prominently on every statement, not just disclosed once at signup |
| Billing cycle choice | Cardholders must be able to choose their own billing cycle start or close date, through any of several channels, not just a one-time option |
| Disputed "fraud" transactions | No interest or charges may be levied on a transaction flagged as fraud until the dispute is resolved |
| Minimum payment due formula | Must follow RBI's prescribed calculation: the higher of (100% of interest, fees and taxes) or (5% of total due), plus past-due and over-limit amounts, plus any EMI due |
| Card closure | Must be completed within 7 working days of a request, once dues are settled; any remaining credit balance must be transferred to the cardholder's bank account |
| Default reporting to bureaus | If a cardholder settles dues after being reported as a defaulter, the status must be updated with the credit information company within 30 days |
| No hidden charges or disguised EMI | EMI conversions that carry interest cannot be marketed as "no-cost" or "zero-interest" |
What the 2024 amendment changed
The March 2024 amendment gave cardholders more flexibility on billing cycle selection (previously a one-time choice, now exercisable repeatedly through multiple channels) and tightened rules on how unpaid taxes, levies, and charges get capitalized into future interest calculations, aimed at stopping issuers from quietly compounding interest on non-credit line items.
Where issuers get caught out
The two most common gaps in practitioner commentary: MITC sent as part of a general welcome packet instead of as its own document, and minimum payment due calculations that don't follow RBI's exact prescribed formula, often because a legacy billing system was never updated after the 2022 Directions took effect.
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