Card Rules: Reserve Bank allows 3 Extra Days to pay your Dues

If you have multiple credit cards, it’s common to forget when a payment is due. Keeping track of due dates for numerous monthly credit card payments can take time and effort.

Take your time with making a credit card payment on time. The Reserve Bank of India (RBI) has instructed banks and

credit card issuers to impose only late penalties three days after a missed payment.

The RBI stated in the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022, which was published on April 21, 2022:

“Card-issuers shall report a credit card account as past due to credit information companies (CICs) or levy penal charges, viz. late payment charges.”

If you have forgotten to pay your credit card dues on time, you can do so within three days of the deadline — without incurring late payment fees.

Also, if you completed your payments within the designated time frame, it’s unlikely that your credit score would be impacted.

A late payment fee will be imposed if the credit cardholder pays their debts after three days.

The next billing cycle usually includes the late fee. Banks or credit card companies determine the number of late payment penalties.

Banks and credit card companies typically impose a predetermined late payment fee based on the amount still owing.

The late fee would increase in proportion to the size of the bill. The RBI noted that the number of days unpaid and

late payment penalties would be determined from the payment’s due date, as indicated on the credit card statement.

For instance, SBI Card charges a late payment cost of Rs 400 if the outstanding amount exceeds Rs 500 and is less than Rs 1,000.

The regulator has further said that only the balance that remains after the due date would be subject to penal interest, late payment fees, and other relevant costs.

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