Credit card users will no longer be burdened with interest on late fees, RBI changed the rules: – ..

By Samira Vishwas On Feb 13, 2026

News India Live, Digital Desk: If you also use credit card, then this news is very important for you. RBI has issued strict instructions to banks and card issuing entities to protect the interests of customers. Now a small delay in card payment will not be heavy on your pocket.

1. Benefit of Grace Period

According to the new rules of RBI, now banks cannot charge late fees only as soon as the due date ends.

3 days grace period: After the payment date is over, the customers 3 days grace period It is mandatory to give. Late fees can be collected only if payment is not made even after 3 days of the due date.

Impact on credit score: If you make the payment within these 3 days, not only will you avoid late fees, but there will also be no negative impact on your credit history (CIBIL Score).

2. No interest on Late Fee

Often banks would add interest and other charges on top of the late fees, due to which the outstanding amount would become huge.

RBI instructions: Now the late fee will be only a fixed amount. Banks will not be able to charge interest or any additional compound interest on late payment charges.

3. Freedom to change the billing cycle

Customers will now have the right to choose the billing cycle of their credit cards as per their convenience.

One time change allowed: Customers can request to change their ‘Billing Date’ at least once a month as per their salary or other income. Banks will have to accept this.

4. Card Closure Rules

Card will have to be closed within 7 days: If a customer wants to close his credit card, the bank has to complete this process within 7 working days. In case of delay, the bank will charge the customer daily fine of rs 500 Will have to give.

Conclusion and tip for customers:

These steps by RBI are aimed at making credit card transactions more transparent and consumer-friendly. However, customers are advised to always make timely payments to avoid unnecessary interest (which can range up to 30-45%).