RBI credit card rules in 2026: billing cycle, minimum due, unsolicited cards, closure and reporting
What the RBI's Credit Cards and Debit Cards Issuance and Conduct Directions, 2025 require of card issuers in India in 2026, in plain language with what to do if a rule is broken.
In 2026 the rules for credit cards issued by banks in India are in the RBI's Credit Cards and Debit Cards: Issuance and Conduct Directions, 2025, issued on 28 November 2025 in separate versions for commercial banks, small finance banks, regional rural banks and urban co-operative banks. They carry forward the Master Direction of 21 April 2022 and its 2023–24 amendments. For you as a cardholder, the key protections are: a one-page Key Fact Statement with the application; the option to change your billing cycle at least once; a minimum amount due that cannot cause negative amortisation; no unsolicited cards, upgrades or limit increases; closure within seven working days or a ₹500-a-day penalty; late charges and "past due" reports only after more than three days past the due date; and timely, accurate reporting to credit bureaus. This guide summarises them; the RBI text is the authority.
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Which rules apply to which issuer
| Issuer | Rule book in 2026 |
|---|---|
| Commercial banks (private, public sector, foreign banks in India) | RBI (Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025 |
| Small finance banks, regional rural banks, urban co-operative banks | Their own versions of the same 2025 directions, with largely matching conduct rules |
| Card-issuing NBFCs | RBI (Non-Banking Financial Companies – Credit Cards: Issuance and Conduct) Directions, 2025, also of 28 November 2025, with largely matching conduct rules (including the ban on unsolicited cards and OTP-based activation) |
Several paragraphs of the commercial bank version were substituted with effect from 1 October 2026, mainly to make the issuer's board-approved policy the basis for credit limits, interest rate variation, default reporting and grievance timelines, and to require that policy to be published on the issuer's website.
Before and at issue
- Key Fact Statement and MITC. A one-page KFS must come with the application, and the MITC must be highlighted and sent separately when you accept the card.
- Explicit consent. Unsolicited cards and unsolicited upgrades are prohibited. If an unsolicited card is activated and billed, the issuer must reverse the charges and pay you a penalty of twice the value of the charges reversed.
- Activation. If you do not activate a new card for more than 30 days from issue, the issuer must seek OTP-based consent to activate it; if you do not consent, the card account must be closed without cost to you within seven working days of the issuer seeking your confirmation.
- No reporting before activation. The issuer may not report a new card account to credit information companies before activation.
- No limit increase without consent. Issuers may not unilaterally upgrade cards or enhance credit limits, and the sanctioned limit may not be breached without your explicit consent.
- Network choice. Under a separate RBI circular of March 2024, eligible issuers must let you choose the card network at issue or renewal. See card network choice.
Billing and payment
- Billing cycle. You must be given the option to modify the billing cycle at least once. See billing cycle and interest-free period.
- Time to pay. Statements must not be delayed, and you must have at least a fortnight to pay before interest starts.
- Minimum amount due. It must be set so that there is no negative amortisation, meaning paying the minimum must not make the balance grow; unpaid taxes, levies and charges must not be capitalised for charging interest. See the minimum amount due.
- Interest. Interest may be charged only on the outstanding amount after adjusting payments, refunds and reversed transactions. Interest is set by the issuer under its board policy; see interest as a monthly rate.
- Past due. An account may be reported as past due, and late charges levied, only if it remains past due for more than three days after the due date.
- No-cost EMI. An EMI conversion with an interest component must not be camouflaged as zero-interest or no-cost EMI. See card EMIs.
- Disputes. Billing complaints must be answered within 30 days, and no charges may be levied on transactions disputed as fraud until the dispute is resolved.
Rewards and co-branding
Discounts, cashback and reward points must be offered transparently, with their source disclosed and the accounting verifiable; details must be on the issuer's website and given to cardholders. A co-branded card must explicitly show that it is issued under a co-branding arrangement. The rules do not fix how much reward an issuer offers.
Closing a card
- A closure request must be honoured within seven working days, if there are no dues. Delay costs the issuer ₹500 per calendar day, paid to you.
- Any credit balance must be transferred to your bank account.
- The closure must be reported to credit information companies within 30 days.
- A card not used for more than one year may be closed after notice to you, if you do not reply within 30 days.
Details: closing a credit card in 7 working days.
Credit reporting and recovery
Once a reported default is settled, the issuer must update the credit bureaus within 30 days. Default reporting must follow the issuer's approved policy with prior intimation to you. Recovery agents may not use intimidation or harassment of any kind. See credit card and CIBIL.
If a rule is broken
- Write to the issuer's customer care and then its grievance redressal or nodal officer.
- Keep dates, reference numbers and screenshots.
- If there is no reply in 30 days or you are not satisfied, complain on the RBI's CMS portal under the Integrated Ombudsman Scheme, 2026. See the complaints guide.
Frequently asked questions
Is the 2022 Master Direction still in force?
For commercial banks it was repealed and replaced by the 2025 directions of 28 November 2025, which carry over its main rules. Older articles may still cite the 2022 numbering.
Can my bank raise my limit and tell me later?
No. A limit increase needs your explicit consent.
Do these rules cover NBFC card issuers?
Card-issuing NBFCs have their own version: the RBI (Non-Banking Financial Companies – Credit Cards: Issuance and Conduct) Directions, 2025 of 28 November 2025. Its paragraph numbers differ from the bank version, so check the text on the RBI website.
Do the rules cap interest?
No fixed cap is set; interest follows the issuer's board-approved policy and must be disclosed. The Supreme Court in December 2024 set aside an old consumer commission order that had treated interest above 30% a year as unfair.
Sources
- Reserve Bank of India — Master Directions: Credit Cards and Debit Cards: Issuance and Conduct Directions, 2025 (updated 1 October 2026)
- RBI Complaint Management System — complaints against card issuers
- National Payments Corporation of India — RuPay network
