Mumbai: The Reserve Bank of India (RBI) on Thursday stated that a credit card account will be treated as a non-performing asset (NPA) if the minimum amount due is not repaid fully within 90 days from the due date mentioned in the card statement.
The decision is a shift from the central bank’s earlier policy of classifying a credit card account as NPA only if the minimum amount due is not fully repaid within at least 120 days of classifying it as past due.
In the current notification, the banking regulator also said that any credit card account will be classified under the “past due" status on a bank’s books from the due date mentioned on the credit card statement.
These steps are aimed at improving credit discipline among credit card users and to provide further operational flexibility to the card issuer, RBI said in its notification. According to the central bank’s sectoral credit data, loans to credit cards stood at ₹ 32,400 crore as on 29 May.