If you receive an unsolicited credit card, you can now make your bank pay for the inconvenience caused to you.
The bank issuing the card will not only have to pay a penalty to the Reserve Bank of India, but also offer monetary compensation to the customer.
The RBI on Thursday issued a circular, which lists out a series of dos and don’ts about the protocol that will have to be maintained in the case of credit cards.
The circular says that if an unsolicited card is issued , activated and billed for without the consent of the customer, the card issuing bank will not only have to reverse the charges, but also pay a penalty amounting to twice the value of the charges reversed.
Additionally, help is also at hand from the banking ombudsman who will determine the amount of compensation payable for the loss of the complainant’s time, expenses incurred, harassment and the mental anguish suffered by him.
The bank will also be held responsible if a card is misused before it reaches the customer. “It is clarified that any loss arising out of misuse of such unsolicited cards will be the responsibility of the card issuing bank only,” the RBI said.
To prevent misuse, banks have been asked to consider issuing cards with photographs of the cardholder, cards with the PIN and signature laminated cards.
As in the case of loans, banks will also have to prescribe a ceiling rate of interest, processing and other charges in the case of credit card dues.
Banks, which offer accidental death and disability insurance on their cards in tie-up with insurers have been asked to obtain in writing the details of the nominees for these benefits.
Customers will also have to be given the option to decide whether they want the bank to share their personal information with other agencies.
Reserve Bank of India.
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