FinoGuy
TF Legend
True, I know 2 people who had similar experience. One of them escalated the issue to RBI ombudsman & got reply as 'providing credit card or not is solely at the bank's discretion'. (CC issuer was axis bank)
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RBI guidelines regarding credit card late payment charges
- Thread starter TechnoFino
- Start date
Millenial Engineer
TF Buzz
I spoke to customer care before I had seen your reply. i got the below reply verbally from them. (it didn't really make sense to me).
1. I paid from my end on 24th ( or to say initiated the transaction ---> as said before the due date is the 23rd so the 24th is t+1) Therefore it is within the extra grace period as stipulated by rbi, so no INTEREST is charged.
now comes the funny part.
2. The bank received the amount on 27th which is LATE, so a late payment fee needs to be paid, in my case T+3=27TH but they charged me on the 26th --? why? because according to that cust care person they follow T+2 so after 24,25th they charged me.
but still, i repeat- according to them if you send money withing T+2 (NOT T+3) they dont charge interest.
but if they don't receive the money within T+2 ( not T+3) they charge you a late payment fee.
how can I be making payment on time and be late at the same time and they are wrong, can anyone give me a clear answer as to how to handle this, please read the below info directly from rbi before replying.
for reference. please read this.
section :- 9. Interest rates and other charges---point 'v' OR just search the words ' three days'.
And Please check if you can find info on this:- Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’
i think this link explains that article
You need to push this further up the chain. The payment was made on 24th, but I think it got settled only on the 27th, nonetheless, they should not be charging you. Push to the higher level, else go to RBI Ombudsman.I spoke to customer care before I had seen your reply. i got the below reply verbally from them. (it didn't really make sense to me).
1. I paid from my end on 24th ( or to say initiated the transaction ---> as said before the due date is the 23rd so the 24th is t+1) Therefore it is within the extra grace period as stipulated by rbi, so no INTEREST is charged.
now comes the funny part.
2. The bank received the amount on 27th which is LATE, so a late payment fee needs to be paid, in my case T+3=27TH but they charged me on the 26th --? why? because according to that cust care person they follow T+2 so after 24,25th they charged me.
but still, i repeat- according to them if you send money withing T+2 (NOT T+3) they dont charge interest.
but if they don't receive the money within T+2 ( not T+3) they charge you a late payment fee.
how can I be making payment on time and be late at the same time and they are wrong, can anyone give me a clear answer as to how to handle this, please read the below info directly from rbi before replying.
for reference. please read this.
section :- 9. Interest rates and other charges---point 'v' OR just search the words ' three days'.
And Please check if you can find info on this:- Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’
i think this link explains that article
Millenial Engineer
TF Buzz
Hi,
@TechnoFino . Please read my post starting on Sunday( 06-11-2022).
I'm looking for a guideline explaining the current ambiguity around if the due date is currently included in the 3 days grace period and what is counted - the date of payment or the date of credit to the bank when it comes to charging late payment fees and interest.
can anyone explain this?
@TechnoFino . Please read my post starting on Sunday( 06-11-2022).
I'm looking for a guideline explaining the current ambiguity around if the due date is currently included in the 3 days grace period and what is counted - the date of payment or the date of credit to the bank when it comes to charging late payment fees and interest.
can anyone explain this?
have you complained against this to RBI ombudsman yet? if not, please do this first since they will ask on your behalf to the bank all this and get your doubts clarified in detail straight from the bank.
if anyone posts here some answer according to them, you will still have doubt in your mind whether that person really knows about it or not. you will end up searching again and again for the right answer.
its better to just complaint in rbi ombudsman and let bank submit its reply which will be shared with you if you ask for it.
keep us posted here of the developments on the matter.
Utkarsh
TF Buzz
Your credit card total bill amount - 50,000/- Due date- 27th jan.
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-
Need clarification on this part, so if I pay on 29 and 30th as a part payment then the interest is getting charged on even that payment and bank is not helping with that.
As per RBI notification-
Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.
So interest charges will be on due date outstanding or t+3 days outstanding?
and second thing does this outstanding includes unbilled transactions for next month as well?
Assume, you have paid 20,000/- before 30th jan.
After 30th jan, your card issuer bank can only charge you late payment fees/ interest only on remaining 30,000/-
Need clarification on this part, so if I pay on 29 and 30th as a part payment then the interest is getting charged on even that payment and bank is not helping with that.
As per RBI notification-
Penal interest, late payment charges and other related charges shall be levied only on the outstanding amount after the due date and not on the total amount.
So interest charges will be on due date outstanding or t+3 days outstanding?
and second thing does this outstanding includes unbilled transactions for next month as well?
Strange
TF Prestige
My friend forgot to pay his icici credit card bill on due date. He paid this bill on 3rd day after due date. Is icici going to report 3 days late payment in the credit report and charge late payment fee for the same or ICICI has implemented new RBI guidelines? Can anyone confirm?
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Batmanbaba
TF Legend
Nothing will happen.... Every bank gives 3 days grace period from the last date of payment.... They wont report it to cibil....
Strange
TF Prestige
Thanks for the confirmation.
Should not be reported , as it is under grace period
techsearch
TF Select
did they report it to CIBIL as well just for 1 day delay ?i have recently missed payment by 3 days.
Millenial Engineer
TF Buzz
It was not reported as legally its not possible to report i guess, but the late fee was reversed and GST WAS NOT reversed. I Left the issue at that as the GST amount was minimal and not worth the time and effort as i will need to first get an email trail from icici regarding them denying to reverse GST and then goto RBI
metal_heart
TF Premier
Any update by ppl who missed the payment. How was it dealt by bank by default.
Missed HDFC CC payment by 2 days. Paid after 2 days, via HDFC netbanking itself (should get credit instantly).
Will I be charged Late Payment & Intreset? Will it be reported to CIBIL?
Missed HDFC CC payment by 2 days. Paid after 2 days, via HDFC netbanking itself (should get credit instantly).
Will I be charged Late Payment & Intreset? Will it be reported to CIBIL?
Avishma1
TF Select
Need one clarification on interest charge. If bill is paid after 3 or more days from payment due date then is interest applicable only on the unpaid balance from closed statement or it applies to the total balance on card which includes unbilled charges which are yet to be billed on upcoming statement?
Only unpaid balance, even from the actual statement.
Let's say you had 10k bill, you paid 1k before given time but not rest, then bank can only charge interest on 9k. Nothing else. Failure to pay interest in next cycle will attract interest on everything, including interest on the pending amount from the original statement.
Avishma1
TF Select
Thanks for the reply but my question is little different. My card bill was 11k due to be paid by Jan 25th and I missed the payment and was charged late fee. My total card balance was around 85k as I made new purchases since the last statement closing date which are yet to be billed but I paid the entire balance of 85k (billed plus unbilled) on Jan 30th . When statement generated on Feb 6th, the bank billed me interest charge on entire 85k balance plus late fee. Is that something against RBI guidelines?
Your reply will be appreciated.
Yes, as said in the original post, that is against the norm. Bank is only supposed to charge interest on the original amount, which was 11k in your case.
Need help regarding Finance charge levied by RBL bank
My Sept'24 Statement bill was 2509.49
But i have paid only 2009.43 before bill due date. (I forgot to pay balance 500.00)
But in my next Statement of Oct'24 finance charge of 93.22 including GST is added.
While i have made no new purchase , and paid my Oct24 bill already.
i have asked for calculation of finance crg from RBL and they have replied me this.
So my final concern is not about that 93 rupees , but i want a clarification whether the bank is right or there is a miscalculation.
🙂
My Sept'24 Statement bill was 2509.49
But i have paid only 2009.43 before bill due date. (I forgot to pay balance 500.00)
But in my next Statement of Oct'24 finance charge of 93.22 including GST is added.
While i have made no new purchase , and paid my Oct24 bill already.
i have asked for calculation of finance crg from RBL and they have replied me this.
So my final concern is not about that 93 rupees , but i want a clarification whether the bank is right or there is a miscalculation.
🙂
When you paid the remaining Rs. 500?
They have charged you interest for that remaining 500 rupees from its spend date to actual payment received date.
And yea... it's a valid charge.
But one more thing... why rbl didn't charged you any late payment fees 🤔
They charge 12.5% of due amount as late payment fees (min Rs 5 and max Rs 1300).
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