Govt to bring bill to regulate credit card payment system

Govt to bring bill to regulate credit card payment system
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First Published: Fri, Aug 24 2007. 06 18 PM IST
Updated: Fri, Aug 24 2007. 06 18 PM IST
PTI
New Delhi: The Government intends to bring a bill to empower RBI to regulate and oversee various payment and settlement systems, including those by card companies and national bodies like Clearing Company of India.
“We intend to bring a bill to regulate payment systems,” Finance Minister P Chidambaram told the Lok Sabha on 24 August while replying to questions over credit card industry.
The Payment and Settlements Bill, cleared by Cabinet on 23 August, provides for setting up a new National Payments Company that would take over the retail payment systems.
The various retail payment systems in operation include card-based paper system, manual paper based cleariing and fund transfer system.
Minister of State for Finance Pawan Kumar Bansal said representations have been received from the public about rejection of their loan or credit card applications without assigning reasons.
The government has advised the RBI and Indian Banks’ Association (IBA) to take corrective measures to ensure that customers of the banks get efficient and hassle-free banking services at affordable charges, he said.
Banking Ombudsmen have been appointed for quick disposal of the complaints of the bank customers, he said, adding banks are also required to set up internal grievance redressal mechanism to redress the grievances of their customers in a time-bound manner.
The IBA has issued a Fair Practices Code which provides for furnishing reasons for rejection of loans including credit card limits to the customers.
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First Published: Fri, Aug 24 2007. 06 18 PM IST