Can credit card be used beyond the limit

Credit Card | Internet Desk: There are many benefits of using a credit card properly. Disciplined financial management is addictive. Being responsible can build a good credit history. Credit score improves if you use the card for timely bill payments and purchases. Due to these benefits, their use is increasing day by day. Recently, RBI has given answers to frequently asked questions related to credit cards. Let’s see that..!

If card is sent without permission..

Card issuing companies must issue credit cards only with the consent of customers. If you don’t apply..don’t activate even if you send the card. The credit card issuer must close the account without any charges within seven days upon the customer’s request. After the process is completed, users should be informed. After that the customer should destroy the card. If you want, you can complain to RBI Ombudsman.

Even if the transaction doesn’t happen… is it like using a card?

Not just financial transactions.. taking statement, changing pin, modifying transaction limit.. same as using card. A call to the Customer Care Center for reasons other than those mentioned above shall not be deemed to be use of the Card.

If partial payment is made.. will interest and fees be applicable on the bill amount?

Failure to pay the entire bill on time will result in loss of interest free maturity benefit. In case of partial payments.. Interest is payable only on the outstanding amount from the date of transaction. Other fees are also applicable for the remaining amount. No interest and fees are payable on the amount due.

Can the billing cycle date be changed?

Organizations should offer customers the option to change the billing cycle start and end dates at least once. Request for change in billing cycle can be filed through helpline, e-mail id, interactive voice response, internet banking, mobile app etc.

Can a credit card be used beyond the limit?

There is a limit to the amount that can be used on a credit card. However, companies can give consumers the option to go beyond that with their permission. Can be deactivated if not required. Do not allow or charge additional limit without notifying the customer. Also, while paying over limit charges, do not include interest and fees in the credit limit.

Are major cardholders liable for dues?

A credit card has the option of taking add-on cards. In that case the main cardholder is liable to pay the dues of all of them. In the case of business credit cards, there is flexibility to split payments according to the agreements.

Is insurance required on credit cards?

There is no need to provide insurance on the credit card. But, if organizations and networks want to give to their customers, they must mention the insurance details including the nominee in every statement. It should also include the policy, insurance company address and phone number. In case of group insurance, phone number to be contacted in case of emergency should be given.

Does card deactivation/block close a credit card account?

Deactivating/blocking a credit card does not mean that it cannot be used. A credit card account with the company remains the same. A special request to close the account is like a complete severance of relations with the company. Companies must close the account within seven days of receiving a request from the customer. Any arrears should be notified to the customer immediately. No need to wait until the end of the billing cycle. Account should be closed within seven days from the date of completion of payments.

How to complain against card issuing companies?

Any complaints should be reported to the issuing authorities first. If there is no response or rejection within 30 days or if the customer is not satisfied with the answer given, the customer can approach the RBI Ombudsman. Complaint can be submitted online or through application form.

Business Credit Card Activation, Closure Need Corporate/Business Organizations Approval?

Prior to activation and closure of business credit cards issued to corporates and business entities based on their application, they should be informed. It is not necessary if there are exceptions in the contract specifically. Even in case of retail cards, the card cannot be closed at the request of the add-on cardholders without notifying the principal cardholder.


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