Relief for Credit Card Users: Digital transactions are steadily expanding across the country. Digital transactions, which began in cities, have now taken root among young people in villages and towns. Along with this, the use of credit cards has also become very common.
Customers used to be concerned about the charges levied by banks for spending beyond their credit card limit, but this will no longer be the case. These fees were often levied inadvertently, easily disrupting consumers’ spending budgets.
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With this, the RBI has taken a major decision and given significant relief to credit card users. The RBI has decided to free consumers from this financial trap. Along with this, the RBI has also issued new and strict guidelines to crack down on all such charges.
RBI Takes Major Decision
The RBI has issued a major directive regarding credit card over-limit spending. According to the new rules, no bank or institution issuing credit cards will be permitted to introduce an overlimit feature without the customer’s explicit and unequivocal consent. The RBI has implemented this rule to ensure the financial security of consumers.
Previously, many banks used to enable this feature on their own without prior notice. Furthermore, according to the new rules, if the customer does not activate this feature themselves, the card will no longer be able to authorise spending beyond its limit. This new feature is considered significant and will prove to be effective for shopping.
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Where will this feature be available?
To give consumers complete control over their spending, the Reserve Bank of India has directed banks to provide a transaction control feature on all their digital platforms, such as mobile banking and internet banking.
Through this special feature, cardholders can automatically activate or disable the overlimit feature at any time, day or night, as per their needs. Even if the consumer exceeds the spending limit for some reason, no charges will be levied. This decision is being considered as a strong financial support to the customers.
