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2026-04-28 10:02:18 · pthandapani@vixio.com
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Notifications - Reserve Bank of India

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TITLE: India's Reserve Bank Amends Credit Card Past Due Reporting and Late Payment Charge Requirements BODY: On April 27, 2026, the Reserve Bank of India (RBI) issued amendment directions to the Reserve Bank of India (Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025. The amendment modifies paragraph 23(5) to establish revised requirements for credit card past due reporting and late payment charge calculation. Under the amended directions, commercial banks issuing credit cards must report a credit card account as "past due" to credit information companies (CICs) or levy penal charges—including late payment charges and related charges—only when a credit card account remains past due for more than three days. Previously, reporting and charges could be applied earlier. The number of days past due and late payment charges are computed from the payment due date specified in the credit card statement, as outlined in the Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions, 2026. The amendment clarifies that late payment charges and other related charges apply only to the outstanding amount after the due date, not to the total amount due. This change aims to protect consumers by providing a grace period before penalties are applied and ensuring charges are calculated on a more limited basis. The amendment directions were issued under section 35A of the Banking Regulation Act, 1949 and come into force on April 1, 2027, providing banks with a transition period to implement the revised procedures. REFERENCE: Reserve Bank of India. (2026). Reserve Bank of India (Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct) - Amendment Directions, 2026. RBI/2026-27/29 DOR.STR.REC.11/24-01-041/2026-27. https://www.rbi.org.in/
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