Credit Cards are a serious business these days. Every company which enlists itself for the category has to follow some of the rulings laid out by RBI. These rulings which have to be followed by Credit Card companies should also be known to the customers. Here I list them for you:
Prior approval of the RESERVE Bank is NOT necessary for a bank to set up DOMESTIC card business, approval of the concerned banks board is sufficient.
Board guidelines have to be clearly stated in written form regarding selecting customers, recovery of dues, sharing of information, interest rate levied on customers, fraud control, processing, transparency in fees etc.
Bank desirous of setting u SEPARATE SUBSIDIARIES for undertaking credit card business would require prior approval of RBI.
Add on cards may be issued with the clear understanding that the liability with that of the principal cardholder.
The bank/NBFC cannot levy any charge which was not explicitly indicated to the credit card holder at the time of issue of the card.
If unsolicited cards are issued, the bank will have to pay the penalties.
Unsolicited loans or credit cards facilities cannot be issued by the credit card issuing bank.
Banks cannot unilaterally upgrade credit cards and enhance credit limits.
If the bank sends the wrong credit card bill to the customer, then the penalty will be twice the amount of the charge imposed(upon the bank) for any such services.
Banks will be held responsible if any calls were made to consumers who have opted to be marked in the DO NOT CALL numbers register.
While most of the credit card companies in India do follow these guidelines, you, as a customer should be aware of these guidelines. These will help you in facing any discrepancies with the credit card company.
To avoid any of the misconceptions or misleading promises made by some companies, try to take
Credit Cards from a company whose credibility is counted in the market. Like Kotak Mahindra Bank. Awarded the Product of the Year, its cards have made a place in the market within just one year of its launch. Look through its website to have more specific details. You will find all the details in it. Especially look for Signature Card which has been enlisted in the best products of the year list.
