Missed Your Credit Card Payment Deadline? No Late Fees, Thanks to This RBI Rule
Failing to pay your credit card bills on time used to come with steep penalties, late fees, and a negative impact on your credit score. However, with the Reserve Bank of India`s (RBI) latest directive, there`s some relief for cardholders. Now, if you miss your payment deadline, you have an additional three-day grace period to settle your dues without facing any extra charges.
Key Points of the RBI Directive:
• Three-Day Grace Period:
Under the RBI`s 2022 "Master Direction," credit card issuers can only mark an account as "Past due" and charge penalties if the payment is more than three days late.
• Impact on Credit Score:
Previously, even a one-day delay could hurt your credit score. With this new rule, as long as you pay within the grace period, your score remains unaffected.
• Late Payment Charges:
Before this rule, missing a payment deadline meant immediate late fees, often higher if the outstanding amount was larger. Now, banks can only levy these charges if the dues remain unpaid beyond the additional three days.
This grace period provides a buffer for those who might miss their payment deadline due to unforeseen circumstances, such as personal emergencies or technical glitches, ensuring they are not penalized immediately. However, it`s crucial to understand that late fees and penalties will still apply if payments are not made within this extended period.
