Credit Card Rules: The number of people using credit cards is increasing rapidly these days. Besides metro cities, you’ll also find credit card usage in Tier 2 and 3 cities. However, many times people unknowingly exceed their card limits, resulting in banks charging hefty over-limit fees. In light of the growing number of complaints, the Reserve Bank of India (RBI) has now taken a significant step toward relieving credit card users. This will help customers control their spending.
Overlimit facility closed without approval
Under the new guidelines, no bank or card issuer can activate the overlimit feature without the customer’s explicit consent. Previously, many banks enabled this feature automatically, leading customers to exceed their limit and incurring significant fees. The RBI has completely stopped this practice.
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Now, customers can activate this feature at their convenience. According to the RBI, customers must provide a transaction control feature in their apps, internet banking, and mobile banking platforms. This will allow customers to turn the overlimit feature on or off at any time. This feature will be available at all times, ensuring complete control over spending.
Banks will no longer be able to levy overlimit charges
If the customer has not authorized the overlimit feature, the bank will not allow the card to be used beyond the limit under any circumstances. Even if the transaction limit is exceeded due to technical reasons, the bank will not impose any overlimit charges. This move is beneficial for customers who accidentally overspend.
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How to check whether the overlimit feature is active or not?
Open the Card Control or Manage Card section in your card’s mobile app or internet banking. You’ll see an option labeled “Overlimit” or “Limit Control.” From here, you can check whether the feature is active and turn it off immediately.
Know how the overlimit feature works?
Suppose the limit of a card is Rs 1 lakh.
If the overlimit feature is enabled, the customer can use it more.
If the feature is turned off or the customer has not allowed it, the transaction will be cancelled immediately as soon as the spending limit is exceeded.
If a bank has imposed an overlimit charge on your account without authorization, the customer can first complain to the bank’s customer service. If a resolution is not found, a complaint can be filed on the RBI Ombudsman portal. The new rules ensure full refunds to customers, which will increase transparency in banking processes.