TE24 Business Desk:
From July 1, the new policy on the MasterCard issue will take effect. The Reserve Bank of India (RBI) has given insights on the guidelines in a notification dated April 21, 2022.
“These bearings linked to MasterCard are applicable to all Scheduled Banks (except Payment Banks, State Co-operative Banks and District Central Co-Employee Banks) and all Non-Banking Financial Institutions (NBFCs) operating in India,” the RBI said in a statement.
Banks or card-guarantors should seek a one-time Secret Key (OTP) based consent from the cardholder for the issuance of a MasterCard, unless equivalent initiation has been made by the client for more than 30 days from the date of issue. , RBI said.
Assuming no consent has been obtained to activate the card, the bank or card-backers must close the MasterCard account free of charge within seven working days from the date of seeking confirmation from the client, the central bank said.
In case of a recovered or replaced card, the conclusion of an inactive card is that the cardholder has to pay all the arrears as per RBI.
Any request for termination of a MasterCard must be considered by the visa guarantor within seven working days, depending on the installment of all contributions to the cardholder. After the visa expires, the cardholder should be informed of the conclusion immediately via email, SMS, etc., the RBI said.
In the case of card-guarantors frustration in the case of card-guarantors to complete the conclusion course within seven working days will result in a penalty of Rs.500 per day, which has to be paid to the client, no arrears in the account.
If the visa has not been used for more than a year, the cardholder should begin the process of closing the card in the context of the cardholder. If no reply is received from the cardholder within 30 days, the card-backer will close the card record, depending on the cardholder’s payment of all arrears.
At the conclusion of a MasterCard account, any credit balance accessible to Visa accounts must be transferred to the cardholder’s ledger.
