BANGALORE: Forgot to repay your credit card dues before the due date? Do not worry. Now you can pay the dues till the next bill date without paying any interest. Isn’t that great? Now Reserve Bank of India has not only asked all the banks to reduce the credit card charges but also instructed banks not to charge any interest on the card dues till next bill date even if the customer has not made the payment before due date as reported in Business Standard. Besides, the credit card issuers make most of their income by these credit card interests. Thus it might be good news for the customers but not that great news for the banks.

Apart from asking banks to levy charges on the credit card dues, RBI has also instructed the banks to waive off the pre-payment charges on floating rate consumer loans and removed the penalty for not maintaining the minimum balance in the savings deposits accounts, which earlier banks used to charge on the customers. Before RBI announcing this new rule, the credit card issuers used to charge extra for not paying the credit card dues before the due date even if the bill was generated after the due date. But now the customers can pay their card dues after the bill is generated that too without paying any additional charges.

“So far, cardholders had to pay interest on credit card dues at expiry of the due date. This (new order) will offer them a few more interest-free days. We are revising our practice accordingly,” said an inside source.

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