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RBI issues new guidelines banning hidden charges and insurance on credit cards without customer consent
The Reserve Bank of India has issued fresh guidelines to banks, prohibiting any hidden fees or insurance levied on credit card users without explicit consent, aiming to strengthen consumer protection.
The Reserve Bank of India (RBI) has rolled out new guidelines for banks to tighten credit‑card safety for consumers. The directives specifically bar banks from imposing any hidden charges or insurance premiums on credit‑card holders without the customer's explicit consent.
Under the new rules, banks must obtain clear, prior approval from cardholders before adding any additional fees, and they are required to disclose all charges in a transparent manner. This includes any insurance cover that may be bundled with the card.
The RBI said the measures are part of its ongoing effort to enhance consumer protection and promote transparency in the banking sector. Banks have been instructed to implement the guidelines without delay and ensure full compliance.
Failure to adhere to the new guidelines could result in regulatory action against the offending institution, the RBI added.
Under the new rules, banks must obtain clear, prior approval from cardholders before adding any additional fees, and they are required to disclose all charges in a transparent manner. This includes any insurance cover that may be bundled with the card.
The RBI said the measures are part of its ongoing effort to enhance consumer protection and promote transparency in the banking sector. Banks have been instructed to implement the guidelines without delay and ensure full compliance.
Failure to adhere to the new guidelines could result in regulatory action against the offending institution, the RBI added.