Credit cards have become a necessity these days, but we often fail to pay our bills on time. For such users, there is now good news. The Reserve Bank of India (RBI) has made a significant change in the rules and has decided to give users the benefit of extra time and lower charges. This means that if you are unable to pay your credit card bill on time, then there is no need to panic. Under the new rules, you will get three extra days to pay, even after the due date, during which the bill can be paid without penalty.
A grace period of 3 days
According to the new RBI rule, late fees will no longer apply immediately after the due date. Customers will be given three days’ extension. For example, if your due date is the 5th, you can make a payment until the 8th without any penalty.
Limit on late fees
Another major change is that late fees will now be charged only on the outstanding balance, not the entire bill amount. This will reduce the additional financial burden on customers and make payments easier. However, if a payment remains unpaid after the three-day period, it will be considered outstanding. This could negatively impact your credit score, so it’s important to pay on time.
Relief in case of disaster
The RBI has also announced relief for those affected by natural disasters. Banks will now be able to provide relief to customers on their own initiative, rather than waiting for applications. These new credit card rules will take effect on April 1, 2027, while disaster-related relief rules will take effect on July 1, 2026.
Earlier, RBI issued draft directions to revise and consolidate guidelines on the Kisan Credit Card (KCC) scheme, aimed at expanding coverage, streamlining operational aspects and addressing emerging requirements in the agriculture sector.
The central bank has invited comments and feedback on the draft guidelines from regulated entities, members of the public and other stakeholders by March 6, 2026.
