Outlook Business Desk
The Reserve Bank of India (RBI) has updated its credit card guidelines through the 2026 amendment directions to bring uniformity in how payment delays are reported and penalties are imposed, while making charges clearer and more consistent for users across issuers.
Under the revised framework, a credit card account can be marked as past due only if the payment remains unpaid for more than three days after the due date, replacing earlier issuer-specific timelines and creating a uniform reporting standard.
The revised rules set a standard trigger for marking accounts as overdue, removing differences across banks and helping users clearly understand when their credit card account will be officially classified as past due.
Late payment charges and related penalties will now apply only after the three-day period ends, aligning penalty timing with overdue reporting and ensuring both follow the same defined threshold under the revised rules.
The amendment revises how late fees are calculated, stating that charges will apply only on the outstanding balance after the due date instead of the total amount due, making penalties more proportionate and preventing inflated fee calculations.
Although penalties begin after three days, the count of days past due will still start from the original due date in the statement, meaning the due date remains unchanged for interest calculations and other delay-related implications.
Cardholders get a short buffer before penalties are applied or accounts are flagged, but missing the due date still counts as a delay, so users should not treat this window as an extension for repayment planning.
The central bank introduced these changes to align credit card rules with regulatory standards on asset classification, provisioning and income recognition, while reducing differences across issuers and making penalty charges fairer for users.
The revised credit card rules will come into effect from April 1, 2027, giving banks and financial institutions time to update their systems in line with the new regulatory framework.