1) Credit Card Regulations to Protect Clients:

Consumers who obtain credit cards in India are protected by the regulations set forth by the Reserve Bank of India. RBI has appointed a group and they recommend regulations that went into effect in India in 2005. The Reserve Bank of India can issue fines or penalties to any card issuer that fails to follow these regulations. The bill mandated measures like prohibiting issuers from marketing to children and forcing issuers to post their terms and conditions online.

When recession was at its peak in 2009, number of customers were unable to pay their bills. Many had problems with paying their credit card bills or a car loan.

2) Low Introductory Interest Rates:

The most striking benefit credit card issuers offer are low introductory interest rates. A 0 percent annual interest rate is an eye- catching rate made to entice customers. The higher standard rate then kicks in several months or a year later.

An extended offer of no interest may appear to be a blessing for consumers who carry debt. However Credit Card Regulations Act has ordered all banks must ensure that the consumers receive their bill and have at least 14 days to pay the balance without interest charges. 30 days notice is required before the bank can make any changes to the terms, interest rates or other account policies. In addition, the terms of the credit card agreement must be presented in the local language of the consumer as well as in English and Hindi.

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