Wednesday, September 9, 2015

Prudential Norms on IRAC and Provisioning pertaining to Advances – Credit Card Accounts


‘Past due’ status of a credit card account would be reckoned from the payment due date mentioned in the monthly statement. Consequently,a credit card account will be treated as NPA if the minimum amount due, is not paid within 90 days from the due date mentioned in the statement.
Reporting of the account as ‘past due’ to credit information companies (CICs) or levy penal charges will be done when the account remains ‘past due’ for more than 3 days. The number of ‘days past due’ and late payment charges shall be computed from the due date mentioned in the statement.
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Based on the RBI Circular dt 16/7/15.
Please visit www.rbi.org.in  for any further clarification if required…………….. Poppy