Five Major Updates That May Affect Cardholders
The Reserve Bank of India has announced that new credit card rules will come into effect from April 1, 2026, aiming to increase transparency, security, and consumer protection. Cardholders and banks will need to adapt to these changes, which could impact usage, fees, and eligibility.
1. Increased Credit Limits for Consumers
- Banks may revise minimum and maximum credit limits based on income, repayment history, and credit score.
- Higher-income customers could get higher sanctioned limits, while new cardholders may have lower starting limits to reduce over-indebtedness.
2. Mandatory EMIs for High-Value Purchases
- Purchases above a certain threshold (e.g., Rs 50,000–1 lakh) may require an option to convert into EMI automatically.
- Reduces the burden of paying large bills in one cycle and encourages responsible credit usage.
3. Enhanced Transparency on Fees and Interest
- Banks must clearly disclose annual fees, interest rates, late payment charges, and reward terms.
- Card statements will include a breakdown of interest charged and minimum payable amount, helping users avoid hidden costs.
4. Stricter Credit Card Issuance Norms
- Banks will verify income, employment, and credit history more rigorously before issuing cards.
- Card issuance to minors, or individuals with poor repayment history, will be restricted.
5. Reward Points and Loyalty Program Guidelines
- RBI may standardize rules for reward points, cashback, and loyalty programs:
- Validity period of points
- Clear redemption options
- Limits on promotional offers
- Protects consumers from misleading offers or sudden reward cancellations.
How Cardholders Can Prepare
Check Your Credit Limit: Ensure it aligns with your income and repayment capacity.
Review Outstanding Balances: Consider paying off high-interest dues before april 1.
Understand Fees & Charges: read the bank’s updated terms carefully.
Plan High-Value Purchases: Know EMI options in advance.
Monitor Reward Programs: Track points and redemption rules to avoid expiry.
Conclusion
The upcoming credit card rule changes from april 1, 2026 aim to protect consumers, encourage responsible borrowing, and enhance transparency. Cardholders should review their current usage, fees, and reward plans to avoid surprises and make the most of the new regulations.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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