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If you have multiple credit cards, it’s common to forget when a payment is due. Keeping track of due dates for numerous credit card payments, each month, can be challenging. If you have forgotten to make a credit card payment on time, don’t freak out. The Reserve Bank of India (RBI) has instructed banks and credit card issuers that they may only impose late penalties three days after a payment is missed.
The RBI stated in the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022, which was published on April 21, 2022: “Card-issuers shall report a credit card account as past due to credit information companies (CICs) or levy penal charges, viz. late payment charges and fees.” If you have forgotten to pay your credit card dues on time, you can do so within three days of the deadline — without incurring late payment fees. Also, if you completed your payments within the designated time frame, it’s unlikely that your credit score would be impacted.
If the credit cardholder doesn’t pay their debts even after three days, a late payment fee will be imposed. The next billing cycle usually includes the late fee. The amount of late payment penalties is determined by banks or credit card companies.
Banks and credit card companies typically impose a predetermined late payment fee, based on the amount still owing. The late fee would increase in proportion to the size of the bill. The RBI noted that the number of days unpaid and late payment penalties will be determined from the payment’s due date, as indicated on the credit card statement. For instance, SBI Card charges a late payment cost of Rs 400, if the outstanding amount is greater than Rs 500 and less than Rs 1,000.
The regulator has further said that only the balance that remains after the due date would be subject to penal interest, late payment fees, and other relevant costs.
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