Aditi Mittal

Kirti Rathod


Pursuing Economics, and deep-diving to bring you A1 writings...


Riya Bhatia


> The RBI has directed banks to grant cardholders the flexibility to alter their billing cycle multiple times. To maximize the interest-free period, it's crucial to be aware of your billing dates and settle all outstanding dues promptly.

In April 2022, the Reserve Bank of India (RBI) implemented regulations granting credit card users greater control over their finances. These regulations, effective from July of the same year, mandated banks to offer cardholders a one-time option to modify their credit card billing cycle. This initiative aimed to enhance flexibility and cater to individual cash flow needs.

#### Recent Amendments by RBI

On 7th March, RBI introduced amendments to these rules, further empowering card users. Now, banks must allow customers the flexibility to change their billing cycle more than once, providing greater customization and adaptability.

Additionally, RBI amended regulations concerning the minimum payment due. Previously, banks were required to disclose the remaining unpaid amount losing the benefit of the interest-free period. However, this clause has been removed in the recent amendment. Instead, banks are now mandated to caution users about the consequences of making only minimum payments, without specifying the exact amount attracting interest.

#### Understanding Credit Billing Cycles

Controlling the billing cycle offers numerous advantages for cardholders. A billing cycle spans the period between two consecutive statement dates, with the due date typically 10-15 days after the statement generation. By strategically setting the billing cycle, users can align the due date with their cash flow, optimizing the interest-free period.

#### Maximizing Benefits

By setting the statement date strategically, users can maximize the interest-free period. For example, aligning the statement date with a period of minimal expenditure can extend the interest-free period up to 45 days. Moreover, adjusting billing cycles becomes crucial for individuals managing multiple credit cards, streamlining due dates for easier management.

#### How to Make Changes

Cardholders can request changes to their billing cycle by contacting the card issuer through customer care channels. However, it's essential to clear outstanding dues and EMIs before making such requests to avoid any complications.

#### Understanding Minimum Payments

While minimum payments offer temporary relief from late payment penalties, they come with long-term consequences. Outstanding amounts attract interest, suspending the interest-free period for subsequent transactions. Experts advise clearing the full outstanding amount each month before the due date to avoid accumulating interest liabilities.

In essence, these regulatory amendments offer card users greater autonomy and control over their credit card management. By understanding and leveraging these changes, individuals can navigate their financial responsibilities more effectively, ensuring sound financial health in the long run.


The RBI has directed banks to grant cardholders the flexibility to alter their billing cycle multiple times. To maximize the interest-free period, it's crucial to be aware of your billing dates and settle all outstanding dues promptly.

Showing posts from credit-card tag

Impact of RBI's credit card billing cycles regulation on you