Recent RBI Card Rules (2024–2025): What Changed and What Didn't

The RBI has been reshaping credit-card regulation since 2022.

The 2024 to 2025 changes are less dramatic than the 2021 master directions. But they are still worth tracking.

Late-fee caps

The RBI’s late-fee cap limits the late fee a bank can charge.

₹500 for outstanding balances up to ₹10,000. ₹1,000 for outstanding balances between ₹10,000 and ₹25,000. ₹1,200 for outstanding balances above ₹25,000.

Most banks have already implemented this. Some had been charging higher amounts. The new caps reduce that.

The late-fee cap does not change the finance charge on the carried balance. It only caps the flat fee.

If you miss a payment on an ₹80,000 balance, your late fee is ₹1,200. It is not the finance charge of ₹2,800. The finance charge still applies separately.

Minimum amount due rules

The RBI’s minimum amount due (MAD) guidelines require banks to give cardholders a clear path to avoid compounding finance charges.

MAD cannot exceed 5% of the outstanding balance. Or a flat floor, whichever is higher. The flat floor is typically ₹200 to ₹500.

Banks must display the MAD prominently on every statement.

Banks must send an SMS when the customer pays only the MAD. The SMS states the financial impact.

Paying the MAD does not waive interest. Paying the MAD reduces the immediate late fee. The payment is on time in the bank’s eyes.

But finance charges continue to accrue on the carried balance.

Tokenisation rollout

The 2024 deadline for merchants to stop storing raw card numbers has passed. They now rely entirely on tokens.

Most major merchants comply. Smaller merchants are still catching up.

You will see Save with token prompts at merchants that have not fully migrated. Approve these.

Some merchants may ask you to re-enter your card after their existing token database is purged.

International merchants, especially US-based subscription services, may still ask for raw card numbers. You may need to use tokenised checkout via Apple Pay or Google Pay.

E-mandate framework

The RBI’s e-mandate framework for credit cards covers recurring transactions.

The first transaction on a new merchant requires standard OTP authentication.

Subsequent transactions up to ₹15,000 per transaction can run on e-mandate without OTP.

Transactions above ₹15,000 require fresh OTP per the RBI’s framework.

You can revoke e-mandates from the bank’s app at any time.

This is good for subscription services. But it requires you to monitor the list.

Banks show all active e-mandates in the app’s Standing Instructions section.

What has not changed

Annual fees are still set by individual banks. There are no caps.

Finance charges are still 3.5% to 4.25% per month. That is 42% to 51% APR before GST. The RBI has not capped finance charges despite discussions.

Reward programme terms are still set by banks. There are no universal rules.

Card replacement fees are still ₹100 to ₹500 typically.

Cash advance fees are still 2.5% to 3.5% of the cash amount.

The cardholder playbook

Set auto-pay for the full amount due. This is the single most effective change any cardholder can make.

Enable alerts for every transaction. The RBI requires banks to send alerts. But the threshold is up to the bank. Set your app to alert for every transaction.

Review your e-mandates quarterly. Revoke any that are dormant.

Hotlist immediately on loss or theft. The 3-day zero-liability window is critical.

Read the bank’s SMS when you pay only the MAD. The finance-charge warning is real.

What to watch in 2026

Finance charge caps: the RBI has signalled it may cap finance charges at 2.5% to 3% per month. That would be 30% to 36% APR. This would be a major shift. But it has not been formalised yet.

Reward programme standardisation: the RBI has been reviewing whether reward programmes should publish a standard effective rate disclosure. This is not yet implemented.

Interchange fee review: the RBI has been reviewing interchange fees periodically. A change could affect the rewards economics of all cards.

Lounge access audit: with lounge access becoming a near-universal premium-card perk, the RBI may require banks to disclose usage rates and overcrowding rules.

The bottom line

The 2024 to 2025 rule changes are incremental. Late-fee caps, MAD rules, and e-mandate expansion improve baseline protection. But they do not fundamentally change the economics.

The biggest practical win for any cardholder is still auto-pay plus transaction alerts plus quarterly review.

The regulatory framework gives you the tools. Using them is up to you.

Sources

Reserve Bank of India — Master Direction on Credit Card and Debit Card Issuance (verified 13 October 2026).
FinWiz24 review methodology (verified 13 October 2026).

RBI credit card fraud rules — zero liability and chargebacks — the zero-liability rule and how to file a chargeback when a transaction goes wrong
GST on credit card fees in India — what you actually pay — the 18% GST applied to annual fees, late fees, and finance charges
Credit card fees and charges — MITC explained — every line in your MITC decoded, including GST on fees
Credit card fee reversal — how to ask, what to expect — the goodwill waiver script that often gets the fee reversed