Urban Co-operative Banks Credit and Debit Cards Issuance and Conduct Directions

RBI/DOR/2025-26/278 DOR.AUT.REC.No.197/24-01-041/2025-26 November 28, 2025

Reserve Bank of India (Urban Co-operative Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025

Table of Contents

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

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 read with Section 56 thereof, 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 (Urban Co-operative Banks - Credit Cards and Debit 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 Urban Co-operative Banks (hereinafter collectively referred to as 'banks' or ‘UCBs’ and individually as a 'bank' or ‘UCB’).

In this context, Urban Co-operative Banks shall mean Primary Co-operative Banks as defined under Section 5(ccv) read with Section 56 of the Banking Regulation Act, 1949.

4. These Directions cover the general and conduct regulations relating to credit, debit and co-branded cards (excluding co-branding credit cards) which shall be read along with prudential, payment and technology & cyber security related Directions applicable to credit, debit and co-branded debit 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 a bank which issues debit or credit cards.

(7) Card Loyalty / Reward Programme/s
are those schemes linked to a credit card or debit 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/debit 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) Debit Card
is a physical or virtual payment instrument containing a means of identification, linked to a Savings Bank / Current Account which can be used to withdraw cash, make online payments, do PoS terminal/Quick Response (QR) code transactions, fund transfer, etc. subject to prescribed terms and conditions.

(15) Form Factor
is the physical or virtual instrument that can be used in place of a card to undertake a payment / banking transaction.

(16) 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.

(17) 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.

(18) 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.

(19) Prepaid Card
is a Prepaid Payment Instrument as defined in the Master Direction on Prepaid Payment Instruments dated August 27, 2021.

(20) 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.

(21) 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.

(22) 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.

(23) 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. Financially sound and well managed Scheduled Urban Cooperative Banks (UCBs) with minimum networth of ₹100 crore which are CBS enabled may issue Credit Cards subject to the conditions listed below in addition to the other general conditions applicable to credit cards: