Non-Banking Financial Companies Credit Cards Issuance and Conduct Directions

RBI/DOR/2025-26/348 DOR.AUT.REC.No.267/24-01-041/2025-26 November 28, 2025

Reserve Bank of India (Non-Banking Financial Companies – Credit Cards: Issuance and Conduct) Directions, 2025

Table of Contents

Chapter I – Preliminary Chapter II – Conduct of Credit Card Business Chapter III – Form Factor Chapter IV – Co-branding Arrangement Chapter V – General Guidelines for Credit Cards Chapter VI – Miscellaneous Chapter VII – Repeal and Other Provisions

In exercise of the powers conferred by Chapter IIIB of the Reserve Bank of India Act, 1934 and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.

Chapter I – Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies - Credit Cards: Issuance and Conduct) Directions, 2025.
2. These Directions shall come into force with immediate effect.

B. Applicability

3. These Directions shall be applicable to following Non-Banking Financial Company (hereinafter collectively referred to as 'NBFCs' and individually as an 'NBFC'), for all layers, unless specified otherwise:

(i) NBFC-Investment and Credit Company (NBFC-ICC) registered with the RBI under the provisions of the RBI Act, 1934; (ii) NBFC-Factor registered with the RBI under the provisions of the Factoring Regulation Act, 2011; (iii) NBFC-Micro Finance Institution (NBFC-MFI) registered with the RBI under the provisions of the RBI Act, 1934; (iv) HFC registered with the RBI under the provisions of the NHB Act, 1987;

Note: The applicability under these Directions is in line with the regulatory structure for NBFCs as set out in Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025.

4. These Directions cover the general and conduct regulations relating to credit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related Directions applicable to credit and co-branded cards, as issued by the Reserve Bank.

C. Definitions

5. In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

(1) Add-on Credit Card means a supplementary credit card to the principal or primary credit card, issued to person/s with predefined relationship with the primary cardholder, within the credit limits and liability of the latter, subject to such terms and conditions as stipulated by the card-issuer. (2) Annual Percentage Rate is the annual cost of credit to the cardholder which includes interest rate and all other charges associated with the credit card under different scenarios based on card features. (3) Billing Cycle / Billing Period is the regular length of time between closing dates of two consecutive bills raised by the card-issuer. (4) Business Credit Cards are issued to business entities / individuals for the purpose of business expenses with specified terms and conditions and not for personal use. (5) Cardholder is a person to whom a card is issued or one who is authorized to use an issued card. (6) Card-issuer is an NBFC which has been permitted by RBI to issue credit cards in India. (7) Card Loyalty / Reward Programme/s are those schemes linked to a credit card whereby the card-issuer or associated merchant establishments, upon use of the card/s, offer digital coupons, points, discounts, cash backs or other benefits having monetary value that can be used/redeemed for the same transactions or other future transactions after accumulation. (8) Charge Card is a type of credit card where the user has to pay the billed amount in full on due date after the billing cycle, and no rolling over of credit to the next billing cycle is permitted. (9) Co-branded Card is a card that is issued jointly by a card-issuer and a co-branding entity bearing the names of both the partnering entities. (10) Convenience Fee is a fixed or pro-rata charge on use of credit cards as one of the alternative forms of payment which is not ordinarily accepted vis-à-vis other forms of payment. (11) Corporate Credit Card is a credit card that is issued to specific employee/s of a corporate employer wherein the liability could rest with the corporate entity or the employee or jointly on both, as per the product design features. (12) Credit Card is a physical or virtual payment instrument containing a means of identification, issued with a pre-approved revolving credit limit, that can be used to purchase goods and services or draw cash advances, subject to prescribed terms and conditions. (13) Credit Limit is the maximum amount of revolving credit determined and notified to the cardholder to transact in the credit card account. (14) Form Factor is the physical or virtual instrument that can be used in place of a card to undertake a payment / banking transaction. (15) Interest-Free Credit Period is the time period from the date of transaction to the due date of payment, wherein interest free payment can be made, subject to the payment of entire outstanding on or before the payment due date by the cardholder. (16) Minimum Amount Due is the minimum amount of money, as a part of the total bill amount, that a cardholder has to pay to not be treated as an overdue bill. (17) Most Important Terms and Conditions (MITC) are the standard set of conditions for the issuance and usage of credit cards, thereby defining the responsibilities and liabilities of the card-issuer and the cardholder. (18) Prepaid Card is a Prepaid Payment Instrument as defined in the Master Direction on Prepaid Payment Instruments dated August 27, 2021. (19) Principal Cardholder means the customer who has been issued credit card by a card-issuer and on whose name the card account has been opened. (20) Total Amount Due is the total amount (net of credit received during the billing cycle, if any) payable by the cardholder as per the credit card statement generated at the end of a billing cycle. (21) Unsolicited Credit Card is a credit card issued without a specific written/digital request or an application therefor.

Provided that the issuance of a credit card for renewal or replacement shall not be treated as an unsolicited card.

Renewal contemplates the issuance of a new card on account of expiry of an existing card and replacement includes issuance of a new card in place of an existing card in lieu of the change in the underlying account relationship, upgradation due to new technology or systems or re-issuance of cards that have been lost, blocked or suspended temporarily, but does not include the opening of a new account after a previous account was closed.

(22) Upgradation of Credit Card means enhancement in the benefits and features of credit cards issued, for example, an increase in the credit or cash limit of the card.

6. All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be.

Chapter II – Conduct of Credit Card Business

A. Eligibility

7. Non-Banking Financial Companies registered with the Reserve Bank shall not undertake credit card business without prior approval of the Reserve Bank. Any company including a non-deposit taking company intending to engage in this activity shall require a Certificate of Registration, apart from specific permission to enter into this business, the pre-requisite for which is a minimum net owned fund of ₹100 crore and subject to such terms and conditions as the Reserve Bank may specify in this regard from time to time. Without obtaining prior approval from the Reserve Bank, NBFCs shall not issue, credit cards, charge cards, or similar products virtually or physically.