Now, credit card users have the option to customize their billing cycle and choose their payment due date.

Struggling with credit card payments due to a month-end deadline? This common issue, often arising from financial constraints before receiving the next month's salary, is now getting a solution. The Reserve Bank of India (RBI) has directed card issuers to grant cardholders the flexibility to choose their payment due date.

This development allows cardholders to align their billing cycle with their financial flow, easing the burden of meeting credit card dues. Typically, credit card bills offer a repayment window of 10-15 days from the billing cycle date until the payment due date. By selecting an ideal billing cycle start date, such as the 1st or 2nd of the month, cardholders can set their due dates between the 10th and 15th of each month.

This option extends to both new and existing cardholders, empowering them to manage their cash flow effectively. Moin Ladha, a Partner at Khaitan & Co., highlights the importance of this change, noting that it enables cardholders to align their finances better and avoid penalties and interest charges.

Furthermore, the RBI's directive includes another significant change: allowing cardholders to choose their preferred card network. This enhancement will soon be accessible to cardholders, enabling them to select from popular networks like Visa, MasterCard, RuPay, Diners Club International, and American Express. However, the exception applies to American Express cards issued by their own authorized network.

Additionally, card issuers are mandated to educate cardholders about the implications of paying only the minimum amount due. Billing statements must prominently display warnings about extended repayments and compounded interest for outstanding balances, emphasizing the importance of responsible credit card usage and timely repayments.

April 30, 2024 12:35 a.m. 127

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