RBI to set rules for credit card bills

By | February 25, 2010

RBI is setting up guidelines telling banks not to call someone a defaulter, if the person has paid the negotiated amount to settle the account. Currently, despite paying the negotiated amount, the card holder is considered as a defaulter as per the bank’s records. Due to this his/her name occurs in the list of the defaulters drawn up by Credit Information Bureau of India Ltd (CIBIL), which uses the data provided by the banks.

Consequently, many loans are not available to the blacklisted person. This leaves the person with no choice, who is then forced to pay the new bill which includes the unpaid amount from the previous settlement along with fines and interest.

An RBI spokesperson said the apex bank is aware of the problem and will soon release a suitable resolution. CIBIL MD Arun Thukral said that RBI has conducted a number of meetings on the subject with banks and CIBIL and said currently the bank considers the balance amount as “written off”, once the dues are settled by the client.

But in most instances, this doesn’t happen. Banks ask for the remaining amount, which as per the client should not have been charged in the first place.

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One thought on “RBI to set rules for credit card bills

  1. Dsayyed

    The Interesting Fact is that despite we paying the AGREED amount to the bank and procure a NOC, the probability of us getting a aloan is bleak or not possible.
    Thereis no reservation to deal with some customers who had a tough time in their life/career which didnt allow them to pay their bill for some time which comes and haunts us like a nightmare and an obstacle to grow when things are good.
    I have settled my due with 3 banks, paid agreed amount and have the NOC from them YET unable to get loans from any financila institution……When a bank agrees on an amount and give NOC then why doubt the credibility of a person who is now doing well as far as Job and assets…There should be a change in RBI guidlines to the banks to entertain settlements and NOCs and deem person as credible for further loans ofcourse covering thier risk and current capability to pay…..I think this is a lost battle!

    Reply

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