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

Reserve Bank of India (Urban Co-operative Banks - Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/278 DOR.AUT.REC.No.197/24-01-041/2025-26

RBI has issued RBI (Urban Co-operative Banks - Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025 effective from 28th November 2025.

Key Highlights:
1. Applicability - All Urban Co-operative Banks (UCBs), meaning Primary Co-operative Banks as defined under the Banking Regulation Act.
2. Eligibility to Issue Credit Cards - Scheduled UCBs with Rs. 100 crores minimum net worth and CBS (Core Banking Solutions) capability can issue credit cards, and only to regular and nominal members (not to non-members).
3. Credit Limits & Exposure - Credit card limits must follow RBI's unsecured lending rules, and total unsecured exposure including credit cards cannot exceed 10% of total assets.
4. Board Responsibilities - Every card-issuer must have a Board-approved policy for issuing and managing credit cards, covering interest rates, charges, grievance redressal, blocking procedures, etc. The Audit Committee must review card operations every six months.
5. Card Activation & Reporting - Cards inactive for 30 days need OTP-based consent for activation. No credit information can be reported to CICs until activation.
6. Types of Cards: UCBs may issue personal, business, charge cards, or cards linked to overdraft accounts, with clear liability guidelines. Add-on cards are allowed, but the primary cardholder remains fully liable.
7. Interest Rates, Billing & Charges: Interest must follow RBI's rules, with clear disclosure of APR, penalties, and billing methods. Bills must be sent on time, wrong bills corrected within 30 days, and no charges applied to disputed fraudulent transactions. Customers may change their billing cycle at least once.


For more information, please refer to the attached document.

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