Reserve Bank of India: The new rules of the Reserve Bank of India (RBI) have given great relief to credit card users. Under this, now even after the due date, you will have a chance to avoid penalty. Usually, if there is some delay in paying the bill, you have to pay additional charges, but now this will not happen.

3 day grace period mandatory

According to RBI, now banks will not be able to immediately impose Late Payment Charges if users miss the due date. They will have to give additional time of 3 days to their customers. For example, suppose your due date is 5th, then you will be able to pay your bill till 8th without any late fee. You will not be burdened with extra charges for this.

According to the new rule, late fee will also be imposed only on the outstanding amount and not on the entire bill amount. This will reduce interest.

impact on credit score

Your account will be considered past due only when the grace period of 3 days is over. That means, even after 3 days, non-payment of bill will affect your credit score. Obviously this new rule of RBI will provide great relief to credit card users, but it is better that you pay your bill on time. With this, you will not have to worry about things like late fees, bad impact on credit score etc.

Under the new rules of RBI, if the bank makes any change in late fees or rules, then it will have to inform its customers at least one month in advance. Overall, although the Reserve Bank has relaxed the rules of late payment for bank customers, it is better that you make your bill payment on time.

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