MUMBAI : Reserve Bank of India has asked banks to treat credit card accounts as non-performing asset if the minimum amount due, as mentioned in the monthly statement, is not paid fully within 90 days from the next statement date. The gap between the two statements should not be more than a month, the RBI said in a notification today.
“Banks should follow this uniform method of determining overdue status for credit card accounts while reporting to credit information companies and for the purpose of levying of penal charges, viz. late payment charges etc., if any,” the central bank said.
The RBI has issued this directive to banks as banks were using divergent practices with regard to asset classification status of credit card accounts if minimum amount due is not paid on the specified due date, it said. -Cogencis