The amendment modifies existing norms to bring consistency in reporting and charges across card issuers.
What the new rule says
Under the revised framework, card issuers can classify a credit card account as “past due” only if the payment remains unpaid for more than three days after the due date.
The same threshold applies to the levy of late payment charges and other related penalties, effectively linking both reporting and penal action to a three-day delay.
How charges will be calculated
The amendment specifies that late payment charges must be applied only on the outstanding amount after the due date and not on the total amount due. At the same time, it clarifies that the number of days past due will continue to be computed from the original payment due date mentioned in the statement, even though penalties are triggered after three days.
What this means for cardholders
The change introduces a limited buffer before penalties and adverse reporting begin, but it does not alter the payment due date itself. Any delay beyond the due date is still counted, and the rule primarily affects the timing of when penalties are imposed and when accounts are reported as overdue, rather than changing billing cycles or interest applicability.
Why RBI made the change
The update aligns credit card norms with broader regulatory directions on asset classification, provisioning and income recognition. It also seeks to standardise practices across issuers and ensure that penal charges are applied more proportionately, particularly by restricting them to the outstanding balance instead of the total dues.
When it comes into effect
The amended rules will come into force from April 1, 2027.
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First Published: Apr 29, 2026 10:01 AM IST
