The World Opinion

Tag: Credit Card Rules

  • RBI’s New Rules For Credit Cards: Mastercard, RuPay, Or Visa – Which Network Is Right for You? | Personal Finance News

    RBI New Rules For Credit Card: Good News For Credit Card Holders! Now, users will have the freedom and flexibility to choose their card network from the available ones – Visa, MasterCard, and RuPay while applying for a new credit card or renewing the existing one. 

    This initiative follows the Reserve Bank of India’s introduction of guidelines aimed at improving customer experience and fostering competition in the digital payments sector.

    Rule For New Credit Card Applicants And Existing Cardholders:

    New credit card applicants can now choose their preferred network—Mastercard, RuPay, or Visa. Existing cardholders also have the option to switch networks during the renewal process, providing flexibility to select a different network if preferred. 

    Notably, there are several banks including YES Bank and Bank of Baroda (BOBCARD), have already adopted these changes. Customers applying for credit cards with these banks can select their network preference online or offline. 

    Exemptions For CreditCard Issuers 

    Card issuers with fewer than 10 lakh active cards are not required to comply with these guidelines. Meanwhile, the Issuers that operate their own authorised networks are also exempt. 

    Authorised Card Networks 

    In India, there are five authorised card networks that operate within the payment ecosystem. These include American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/Pacific Pte. Ltd., National Payments Corporation of India-Rupay, and Visa Worldwide Pte. Ltd.

    These networks play a significant role in enabling electronic transactions and promoting digital payments across the country. However, the RBI has made an exception for American Express, as it operates its independent network. Consequently, American Express is not obligated to adhere to the RBI’s guidelines. 

    Visa and Mastercard Credit Card Benefits

    These cards are accepted in over 200 countries worldwide. Both offer premium benefits like access to airport lounges, travel insurance, and discounts at international merchants. 

    However, they often come with higher fees, particularly for transactions in foreign currencies. 

    RuPay Credit Card Benefits 

    RuPay cards are ideal for domestic because of their lower transaction fees, which make them budget-friendly. Thanks to UPI integration, digital payments in India have become seamless.

  • From HDFC To IDFC: 4 Important Credit Card Changes You Need To Know | Personal Finance News

    New Delhi: In May 2024, several banks and card issuers updated their credit card fees, charges and rules. The top banks making these changes include Bank of Baroda, Swiggy HDFC Bank Credit Card, Yes Bank and HDFC Bank. It’s important for credit card customers to stay informed about these updates and follow the revised fees and guidelines set by their bank or credit card company.

    1. Bank of Baroda

    Bank of Baroda is increasing the late payment fees for credit cards starting from June 26. If customers miss a payment or pay less than the amount due they’ll have to face higher late fees. Further, the interest rate on unpaid dues will rise from 3.49 per cent i.e 41.88 per cent annually to 3.57 per cent per month i.e 45 per cent annually. (Also Read: HDFC Bank To Stop SMS Alerts For Small UPI Transactions Starting From THIS Date: Find Out Why)

    2. Swiggy HDFC Bank Credit Card

    There will be a significant change from June 21 in how this bank handles cashback. Instead of cashback appearing as Swiggy Money on its app it will be directly reflected on your credit card statement. This means the cashback will reduce your statement balance for the next month. The cashback will continue to show up on your Awiggy app as usual until June 20. (Also Read: PAN-Aadhaar Linking Update: Link PAN With Aadhaar Card Online Before May 31 And Avoid Higher TDS Deductions; I-T Dept Issues Notification)

    3. Yes Bank

    There have been several updates made by YES Bank to its credit cards except for the ‘private’ credit card type. These changes primarily affect the fuel fee category on some cards. The way spending levels are calculated for waiving annual and joining fees has been modified. Further, there is also a new extra fee utility transactions.

    4. IDFC Bank

    IDBC First Bank will be adding a utility bill surcharge for its credit card customers. If your total utility bill payments exceed Rs 20,000 in a single billing cycle you will be charged 1 percent fee plus GST. However, the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card are exempt from this surcharge.