RBI asks banks to treat some overdue credit card accounts as NPA

RBI asks banks to treat some overdue credit card accounts as NPA

FPJ BureauUpdated: Saturday, June 01, 2019, 05:14 PM IST
article-image

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

RECENT STORIES

TCS Reports 6% Q1 Net Profit Rise To ₹12,760 Crore, Announces ₹11 Interim Dividend

TCS Reports 6% Q1 Net Profit Rise To ₹12,760 Crore, Announces ₹11 Interim Dividend

Stock Market Update: Sensex & Nifty Fall As IT Stocks Drag, Investors Await TCS Earnings

Stock Market Update: Sensex & Nifty Fall As IT Stocks Drag, Investors Await TCS Earnings

India Revises Proposed Retaliatory Duties Against US Over Steel, Aluminium Tariffs In WTO

India Revises Proposed Retaliatory Duties Against US Over Steel, Aluminium Tariffs In WTO

Govt Plans Fresh Stake Sale In LIC Via OFS To Meet 10% Public Float Norm By May 2027

Govt Plans Fresh Stake Sale In LIC Via OFS To Meet 10% Public Float Norm By May 2027

Indian Commerce Team To Visit Washington For Trade Talks; Key Sticking Points Include Dairy, Autos

Indian Commerce Team To Visit Washington For Trade Talks; Key Sticking Points Include Dairy, Autos