Key takeaways

  • RBI's Integrated Ombudsman Scheme, 2026 took effect on 1 July 2026, with compensation of up to ₹30 lakh plus ₹3 lakh for harassment.
  • From 1 April 2027, late payment charges apply only to the amount still unpaid after the due date.
  • Accounts can be reported "past due" only after more than 3 days of non-payment.
  • Existing rules already give you card closure on request, no unsolicited limit increases, and protection against unauthorised transactions.

The Reserve Bank of India (RBI) sets the rules every credit card issuer in India must follow. Two important updates came in 2026, and many useful protections from earlier years still apply. Here's what they mean for you, based on RBI's own documents.

1. A new Ombudsman scheme (in force from 1 July 2026)

The Reserve Bank – Integrated Ombudsman Scheme, 2026 (RB-IOS 2026) replaced the 2021 scheme from 1 July 2026. According to RBI's official FAQ:

  • It's free. There's no fee to file or resolve a complaint.
  • You must complain to your bank first and wait 30 days, or less if the bank rejects or answers your complaint and you're not satisfied.
  • You then have 90 days to go to the Ombudsman.
  • The Ombudsman can award up to ₹30 lakh for consequential loss, plus up to ₹3 lakh for your time, expenses and harassment.
  • File online at cms.rbi.org.in, by email to crpc@rbi.org.in, or by post. The RBI contact centre is toll-free on 14448.

Step-by-step instructions are in our Ombudsman guide.

2. Fairer late payment charges (from 1 April 2027)

On 27 April 2026, RBI issued the Credit Cards and Debit Cards: Issuance and Conduct – Amendment Directions, 2026 (circular RBI/2026-27/29). It takes effect on 1 April 2027 and says:

  • Card issuers can report an account as "past due" to credit bureaus, or levy late fees, only when it has been past due for more than three days.
  • Late payment and related charges must be levied only on the amount outstanding after the due date, not on the total amount due.

So if you pay ₹48,000 of a ₹50,000 bill on time, from April 2027 the late charge will be based on the ₹2,000 left unpaid, not the full ₹50,000. Some finance sites have reported different issue and effective dates for this change. The dates above are from RBI's own notification.

3. Protections you already have

These come from RBI's existing credit card directions and related circulars, and they still apply:

Closing your card

You can ask to close your card at any time, and the issuer must do it promptly once dues are cleared, without making you jump through hoops. Delays can attract a penalty payable to you.

No unsolicited cards or limit increases

Banks can't issue a card, or increase your credit limit, without your explicit consent. If you don't activate a new card within 30 days, the issuer must seek your consent (via OTP) before activating it, or close it.

Billing cycle and network choice

You can ask your card issuer to change your billing cycle at least once. For new cards, issuers are required to offer a choice of card network where they issue on more than one network.

Unauthorised transactions

Under RBI's customer liability framework, if you report an unauthorised electronic transaction within 3 working days of the bank's alert, your liability is zero. Reporting within 4–7 working days limits your liability (up to ₹25,000 for credit cards with a limit above ₹5 lakh), and after that it depends on the bank's policy. The bank should credit the amount (shadow credit) within 10 working days of your report. See our fraud response guide.

Safer online payments

Merchants can't store your full card number. Saved cards use tokens instead. Tokenisation explained. International and contactless usage can be switched on or off by you, and new cards are enabled for domestic use only by default.

What to do now

  1. Know the escalation path: bank first, then the RBI Ombudsman after 30 days.
  2. Turn on transaction alerts and report anything suspicious within 3 working days.
  3. Review your card controls in your bank app: international, online and contactless limits.
  4. Keep paying in full. The new late-fee rule is fairer, but interest still applies to any unpaid balance.

FAQs

What are the new RBI rules for credit cards in 2026?

The RBI Integrated Ombudsman Scheme, 2026 took effect on 1 July 2026, and amended card directions issued on 27 April 2026 require late charges to apply only to amounts outstanding after the due date from 1 April 2027.

How much compensation can the RBI Ombudsman give?

Up to ₹30 lakh for consequential loss and up to ₹3 lakh for loss of time, expenses and harassment, under RB-IOS 2026.

Can a bank increase my credit limit without asking?

No. RBI rules require your explicit consent for credit limit increases.

Is there a grace period before a late payment is reported?

Yes. Accounts can be reported past due, and late fees charged, only when payment is more than three days late.

Where can I read the official RBI credit card rules?

On RBI's website: the Master Direction on credit and debit cards, the 2026 amendment directions and the RB-IOS 2026 FAQ. We link to each under Sources.

Do the new rules apply to all banks?

The card directions apply to card-issuing banks and certain NBFCs regulated by RBI. RB-IOS 2026 covers banks, many NBFCs, non-bank PPI issuers and credit information companies.

Sources

About the author

Deepak

Founder & Editor, CardPicker

Deepak founded CardPicker and writes and fact-checks its credit card guides, comparisons and news.

✓ Fact-checked 26 September 2026Prices, dates and card terms in this article were checked against issuer websites, official pages and news reports listed under Sources. Card figures come from our database, which is re-verified regularly. Offers change often, so confirm on the issuer's site before you buy or apply. Spotted an error? Tell us.