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A big update has come out for credit card users. The Reserve Bank of India (RBI) has made some changes in the rules, which are scheduled to come into effect from April 1, 2027. Under the new rules, the account will be reported “Past Due” or late payment charges will be levied on it, if the payment is not made till 3 days after the due date. Instructions to this have also been given to card issuing companies and banks.

If a customer pays the credit card bill within the prescribed deadline or within three days thereafter, no penalty or extra charge will be imposed on him under the new rules. Earlier, in many cases, customers were fined immediately after the delay. This decision of RBI will provide relief to credit card users. If there is delay in bill payment due to small mistakes, they will get additional time of 3 days.

Know these rules also

RBI has also expressed its views on the calculation of charges. It is clarified that late payment charges and other charges will be levied only on the amount outstanding after the due date and not on the outstanding amount. The number of days outstanding (Date Post Due) and late payment charges will be counted from the payment date mentioned on the credit card statement. Information about the new rules: The Central Bank has explained about these rules in “Commercial Banks – Asset Classification, Provisioning and Income Recognition Instructions 2026”. In which amendments keep happening from time to time.

New rules for loans will also be applicable from April 2027

RBI has tightened the rules for bad loans (NPA). Now the loans will be divided into three phases. Under the new ECL framework, if the bank feels that a loan may incur loss in the future, then banks will have to keep capital ready in advance. If a loan remains outstanding for 30 days, it would be considered a red flag. The bank will have to be immediately alert regarding this. If the loan remains outstanding for more than 90 days, it will be included in NPA.

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