Now you can pay credit card bills 3 days after due date also!

Do you often forget to pay credit card bills on time and later worry about your Cibil score? This directive by RBI is surely going to benefit you.

The Reserve Bank of India (RBI) has directed that banks should not levy a penalty if they fail to receive payment for three days after the due date.

The central bank has said that banks should report delayed payment to credit information companies like Cibil only when a credit card account remains past due for more than three days.

"However, banks shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges only when a credit card account remains 'past due' for more than three days. The number of 'days past due' and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement," RBI said in a circular.

RBI stated that past due status of a credit card account for classifying bad loans would be considered from the payment due date mentioned in the monthly credit card statement.

This will bring in greater credit discipline and provide operational flexibility to credit card issuers.

The RBI stated that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the payment due date mentioned in the statement.

(Image: Reuters)