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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Non-Banking Financial Companies - Credit Cards: Issuance and Conduct) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/348 DOR.AUT.REC.No.267/24-01-041/2025-26

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Credit Cards: Issuance and Conduct) Directions, 2025, effective from 28th Nov 2025. Applicability: These Directions apply to NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC, IDF-NBFC, HFCs, NBFCs issuing credit cards or charge cards, and Co-branding arrangements. Key Highlights: - NBFCs meeting the prescribed criteria (including minimum NOF of Rupees 100 crore) may issue credit or charge cards under a Board-approved policy. No card may be issued without explicit customer consent, and unsolicited card issuance is prohibited. - NBFCs must undertake comprehensive KYC and independent credit assessments. Credit limits cannot be increased without informed customer consent, and card activation requires explicit acceptance. - NBFCs may issue co-branded cards only under a Board-approved framework. Co-branding partners cannot access transaction-level data beyond what is essential for providing support services. Compliance responsibility lies solely with the NBFC. - The Directions mandate clear disclosure on APR, fees, interest computation, and billing cycles. Customers must receive statements in advance with adequate time to pay. Automatic conversion of dues into EMIs is disallowed without explicit consent. - Customer Protection Framework: Fair and non-coercive recovery practices, 24x7 customer support for card loss and fraud, Zero-liability and limited-liability policies for unauthorised transactions, and Mandatory alerts for transactions, limit changes and dues. - Customers can close a card within 7 working days. NBFCs must close accounts within 30 days of request or face Rupees 500 per day penalty. Dormant cards (inactive for 12 months) must be blocked and subsequently closed after notice. - Strict controls apply to customer data usage. NBFCs must ensure full privacy protection and cannot share transaction-level information with co-branding partners except on a need-to-know basis.

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