Critical Update For Credit Card Users: Change In Billing Cycle Allowed Only Once (RBI's New Guidelines)

The Reserve Bank of India (RBI) has introduced new guidelines allowing credit cardholders to adjust billing cycles and due dates for better cash flow alignment.

These changes, effective March 7, 2024, aim to enhance customer convenience and flexibility in managing credit card payments. Under the updated provisions, cardholders are now entitled to modify their credit card billing cycle “at least once”, providing greater control over their financial obligations.

Advantages of Adjusting Billing Cycles

Modifying billing cycles offers several advantages to credit card users. By aligning due dates with salary receipt dates, cardholders can ensure that they have sufficient funds to make timely payments, reducing the risk of default and associated penalties. Additionally, adjusting billing cycles allows for better cash flow management, enabling individuals to allocate funds efficiently towards essential expenses and savings goals.

Managing Multiple Credit Cards

For individuals with multiple credit cards, aligning due dates according to financial circumstances is crucial. While consolidating payments to a single due date can save time, spreading payments across different dates may be more manageable for others. Careful consideration of financial needs and obligations is advised before requesting billing cycle adjustments. Moreover, understanding bank policies regarding billing cycle modifications is essential to avoid any inconvenience or misunderstanding.

How to Change the Billing Cycle

To change the credit card billing cycle or due date, cardholders can follow these steps:

1. Online Method: Many banks allow customers to adjust billing cycles through their net banking platforms. Cardholders can log in to their accounts and navigate to the credit card section to find options for modifying billing cycles.
2. Customer Care Assistance: Alternatively, cardholders can reach out to their bank’s customer care department via phone or email to inquire about changing billing cycles. Customer care representatives can guide them through the process and address any queries or concerns they may have.
3. Bank Specific Policies: It’s important for cardholders to familiarize themselves with their bank’s specific rules and regulations regarding billing cycle modifications. Each bank may have its own procedures and limitations, so understanding these details beforehand can streamline the process and prevent any misunderstandings.