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Our Bureau

Mumbai , June 28

CREDIT card issuers must take into consideration the fact that a customer may hold a number of credit cards while fixing maximum credit limits, according to the draft guidelines on credit cards issued today by the Reserve Bank of India.

The guidelines chiefly emphasise transparency in operations and respect for the privacy of customers on the part of card issuers.

Card issuers must clearly explain the calculation of annualised percentage rates (APR), late payment charges, and annual charges to their customers.

The other distinctive announcement in the guidelines is that issuers must not harass or threaten defaulting customers during the recovery process.

On the matter of considering the total credit available to the customer through several credit cards, the guidelines appear to have left it to the issuer to decide. "As holding several credit cards enhances the total credit available to any consumer, banks/NBFCs may fix maximum credit limit having regard to the means of the customer," RBI has said.

"Card issuers should quote annualised percentage rates (APR) on card products (separately for retail purchase and for cash advance, if different). The method of calculation of APR should be given with a couple of examples for better comprehension.

"The APR charged and the annual fee should be shown with equal prominence. The late payment charges, including the method of calculation of such charges, and the number of days should be prominently indicated."

The bank/NBFC should not levy any charge that was not explicitly indicated to the credit card holder at the time of issue of the card and getting his/her consent. Also, the terms and conditions for payment of credit card dues, including the minimum payment due, should be stipulated so as to ensure that there is no negative amortisation. Changes in charges (other than interest) may be made only with prospective effect giving notice of at least one month.

One of the guidelines says that banks and NBFCs must maintain a Do Not Call Registry (DNCR) containing the phone numbers (both cell phones and land phones) of customers who do not want unsolicited calls.

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