The RBI recently issued credit card regulations in which customers be given a one-time opportunity to change the billing cycle to their preference.
According to the apex bank, a billing cycle or billing period is the regular interval between the closing dates of two consecutive bills raised by the card issuer.
The same provision shall be granted with effect from July 1, 2022.
On the credit card, the payment date generally falls 15-25 days after the billing period ends.
For the transactions performed during the billing period, credit card holders enjoy interest free period from the start of the billing cycle to the payment due date. Payments made after the due date are subject to late fee and interest together with an impact on the credit score.
With the new ruling in place, you can change the billing period as a one-time option, allowing you to choose the billing cycle so that the payment due date falls in line with your convenience and cash flow.
Individuals who have multiple credit cards will find this useful. So, once again, you can use the one-time modification option to achieve your goal.