New rules from RBI to help Credit Card users

The RBI has set new rules for credit card issuing banks providing relief to credit card users in India. As per the new guidelines RBI has asked banks not to charge excessive interest rates on personal loans or credit cards. It had clarified earlier that “the total cost to the borrower, including interest and all other charges levied on a loan, should be justifiable having regard to the total cost incurred by the bank in extending the loan.”

Banks have also been asked to provide reasons in writing in case a credit card application has been rejected. In case of unsolicited card the RBI will hold the banks responsible for any liabilities resulting from the misuse of such credit cards. Banks will have to reverse the charge and also pay a penalty to the consumer in case there is any misuse of such credit cards.

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