Can customers change billing cycles anytime?

Yes, the rule allows customers to change cycles as per their changing requirements and cash flows.

What is the minimum time given for payments?

Banks need to provide at least 25 days from billing date for customers to make payments without interest charges.

Are there any charges for cycle changes?

No charges are allowed from banks for cycle changes as desired by customers.

How will it impact customers' credit scores?

Aligning bills with paydays can help avoid payment delays which adversely impact credit scores.

How often can the cycle be changed?

While there is no limit specified, frequent changes may attract charges which are not permitted under the rule.

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Credit Card Payment Settlement Process - Flexibility in Your Credit Card Billing Cycle

Diya Vig

Author

Updated: 12-04-2025 at 12:30 PM

The Reserve Bank of India (RBI) has introduced a new rule change to cater to the flexibility and relief of credit card users. The rule was implemented for improved borrowing and punctual credit card bill payments.

Aim Of RBI’s New Rule

The RBI has mandated banks to offer users the option of setting their billing cycles according to their convenience and liberty.
This improves flexibility among credit card users. The user can change the billing cycle according to their cash flow.
This helps them control their finances better by aligning their bill payments.
In doing so, they can avoid lapses in bill payment, which affect their credit score as a consequence.
With the freedom to align their payment cycle with their paydays, the RBI is looking to promote healthy and timely repayment behaviour. This helps both the bank and the customers by decreasing defaults and lapses.
The rule also mandates credit card companies to provide at least 25 days for customers to make payments on outstanding balances.
without incurring any interest charges. The RBI is aiming for transparency and fairness in the credit card billing process with this stretch in the timeline.
It also gives customers time and helps foster a healthy environment about money expenditure and management.

Objectives Of This New Rule

By taking all these measures, the RBI aims to enhance the accessibility of credit cards.
To build an environment where responsible borrowing and expenditure are also valued.
With transparency, flexibility, and fairness in credit card operations, the RBI aims to instil confidence among consumers.
The RBI looks forward to providing credit card services to broaden its reach among citizens.
Ensuring easy accessibility for more people.
It also lays the frameworks to push for safer, transparent, and responsible money management by the said users as well.