Can You Change Credit Card Billing Cycle and Due Date: Check Here RBI’s New Rule
Credit Card Rule Change
You can now decide the billing cycle of your card
If you are a credit card user, you probably understand the importance of paying your bill on time. Not meeting the due date can negatively affect your credit score and result in hefty late fees if it’s more than three days late. Therefore, it is crucial to adjust your billing cycle to ensure you can pay your credit card bill without any trouble. The question arises: Can you select or alter your credit card billing cycle and due date?
The answer is “Yes”.
According to the RBI’s new amendment: cardholders can pick any date they want as the beginning or end of their billing cycle at least once.
RBI’s New Rule on Credit Card: Changes in Billing Cycles
The Reserve Bank of India (RBI) has instructed credit card issuers to offer customers the opportunity to adjust their credit card billing cycle at least once.
In an update to the ‘Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022’, released on March 7, 2024, the central bank stated, “To enhance flexibility in this aspect, cardholders will be given the choice to modify the billing cycle of their credit card at least once, according to their convenience.”
How to Change Your Billing Cycle
First, you need to pay off any money you owe on your credit card. After that, you can ask your bank to change your billing cycle. You can do this by phone, email, or using your bank’s mobile app.
Benefits of the New Rules
Being able to change your billing cycle has some advantages. It lets you pick a date to pay your bill that works best for you. You can also make sure you have enough time to pay without any extra fees. Plus, it helps you manage payments on more than one credit card at once.
How It Helps Customers
Before, banks decided when your billing cycle was, which could be annoying. But now, you get to choose when you want it to start and end. This makes it easier to manage your credit card.
Changing your credit card billing cycle: What are the advantages for credit card users?
A billing cycle, also known as a billing period, refers to the duration between two statement dates. Your credit card bill for the current month is generated on the statement date.
Typically, the due date for your credit card bill falls within 15-20 days after the statement date, granting credit card users an interest-free period of approximately 45 to 50 days. When you opt to change your billing date, the due date for your credit card payment will adjust accordingly.
Note:
The instructions regarding credit cards will be applicable to all banks and non-banking financial companies (NBFCs) issuing credit cards.
Frequently Asked Questions:
1. Can a cardholder change the billing cycle of a credit card to any date?
Ans: Yes, cardholders have the option to select any starting or closing date for the billing cycle at least once.
2. How can a customer request to change the billing cycle?
Ans: Customers can request to change the billing cycle through various channels such as helpline, email, IVR, internet banking, mobile app, and other modes.
3. Will the card issuer charge interest on unpaid taxes or charges?
Ans: No, card issuers will not charge interest or any other fees on unpaid taxes or charges effective from Oct 1, 2022.
4. If a cardholder makes a partial payment, will the card issuer charge interest or late payment fees?
Ans: Yes, if the total amount due is not paid by the due date, the interest-free period will be lost, and interest may be charged from the transaction date on the outstanding amount.
Tips to Remember
Remember, it’s better to pay your whole credit card bill on time. If you only pay the minimum amount, you’ll have to pay interest on what’s left. Plus, you won’t get any interest-free time for new purchases.
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