Thank you Reserve Bank of India (RBI, which is the US Fed equivalent of Government of India)
RBI yesterday issued its final guidelines on credit cards, to all Banks and NBFC’s (Non Bank Finance Companies). This guideline is a “God” sent answer to the long prayer of Indian Credit Card users, who were at the mercy of issuers. The guideline addresses several of consumer pain points:
- Credit Limits cannot be enhanced unilaterally by the issuer
- “No” to Unsolicited Card/Charges/Loans
- Every customer complaint will have to be issued a docket number
- Issuers should not make any intimidating or harassing collection calls to customers
- Banks should also maintain a Do Not Call Registry (DNCR) containing phone numbers of customers as well as non-customers. People can register to this through website or offline. DNCR should be set up within two months
- Method of calculation of rates for interest, late fee with clear examples to be published in their websites
I have had a mixed (Good and Bad) interactions with Banks on Credit Cards. If the above guidelines are followed in letter & spirit by the issuers, I can certainly say Indian Card industry will become a role model to the world.
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