RBI released new guidelines regarding credit and debit card issuance on April 21, 2022.

RBI said "the issue of unsolicited cards/upgradation is strictly prohibited".

These directions will take effect from July 1, 2022.

A credit card holder is not liable to pay any hidden costs when a credit card is issued to him / her.

The card issuer must comply with any request to close the credit card within seven business days.

If this does not happen, the issuer will have to pay a penalty of Rs.500 per day to the cardholder till the card is closed, provided there is no outstanding fee in the account.

The card issuers cannot upgrade credit cards or improve credit limits without the permission of the cardholder. If the credit limit of the credit card is reduced, it will be announced to the cardholder.

The card issuers or their agents may not use verbal or physical threats, harassment or humiliation at a time of debt collection. The information of the customers will be limited to the repair agents.

If a credit card has not been used for more than a year, the issuer will close it. The cardholder will be contacted before the credit card closes. If the card user does not respond within 30 days, the card account will be closed.

If a credit amount remains even after the credit card is closed, that amount will be transferred to the cardholder's bank account.