The RBI's credit card rules are now set out in the Reserve Bank of India (Commercial Banks - Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025, issued on 28 November 2025, which consolidated the 2022 directions. The 2022 directions had come into effect on 1 July 2022, while some of their provisions were delayed to 1 October 2022.
Under these directions, each card issuer must hold a credit card policy approved by its board, and the policy has to follow the RBI instructions as they are issued from time to time. The Audit Committee of the board will review the credit card operations of the issuer every half year.
The directions also say who may issue cards. Non-bank lenders need prior approval from the RBI before issuing any card, scheduled commercial banks with a net worth of Rs 100 crore or more may run the card business, and regional rural banks may issue cards only through a sponsor bank.
What issuers cannot do without consent
The directions place several obligations on the issuer, and most of them depend on the cardholder giving explicit consent. An issuer cannot exceed the sanctioned credit limit without such consent, and it cannot raise limits or upgrade a card category on its own.
If an unsolicited facility is given without written consent and the customer objects, the issuer must withdraw it. The issuer may also face a penalty decided by the ombudsman.
A card that has been issued but not activated within 30 days needs OTP based consent from the customer before activation. The RBI notification of 21 June 2022 had extended this timeline to 1 October 2022.
On disclosure, the issuer must give a one-page key fact statement with each application, showing the rates and charges, and must state the reasons if an application is rejected. Annualised rates must be quoted separately for purchases, cash advances and late payment, where they differ.
Complaints and the late fee change due in 2027
If a cardholder does not receive a satisfactory response from the issuer within one month of making a complaint, the cardholder can approach the Office of RBI Ombudsman.
An amendment issued on 27 April 2026 to the 2025 directions takes effect on 1 April 2027. Under it, an account can be reported as past due, and late charges levied, only after it has been past due for more than three days, counted from the due date. The fee is applied on the outstanding balance after the due date, not on the full amount due.
