Can the credit card billing cycle be changed? Know the official rule of RBI and the formula to choose the right date as per salary.

The biggest concern when using a credit card is to pay the bill on time and avoid penalties or heavy interest. Many times it happens that the credit card bill comes at that time of the month when the balance in the bank account is low, while the salary is due after a few days. In such a situation, this question definitely comes in the mind of salaried employees whether the billing cycle of credit card can be changed? The direct answer is-yes, absolutely replaceable. The Reserve Bank of India (RBI) has issued clear and mandatory guidelines for this.

RBI has made special provision in its Master Direction on Credit Card and Debit Card Operations for the convenience of credit card holders and to protect them from unwanted default.

• Right to Lump Sum Option: As per RBI regulations, every card issuing bank or non-banking financial company (NBFC) is required to provide to its customers at least Mandatory to give permission to change your billing cycle (bill generation date) once Is.

• Banks cannot refuse: No bank can reject the application saying that the billing date is fixed in the system. Customers can select the new date as per their financial convenience or salary cycle.

• no extra charge: Generally, banks do not charge any fee for changing the billing cycle. However, during the changeover, a pro-rata bill for the first cycle (interval of more or less days) may be generated.

Credit card billing math is very easy to understand. Two dates are most important in the billing cycle:

1. Billing Date: The day on which the bill for the month’s expenses is generated.

2. Payment Due Date: The date by which the bill has to be paid without any interest is usually 15 to 20 days after the bill is generated.

If you want to pay bills immediately after salary without any stress, then you should set your billing date as per the schedule given below:

Golden Rule: Always choose a billing date that fits your Payment due date: 2 to 5 days after salary credit Fell. By doing this, the card will be paid first as soon as the salary comes and the risk of running out of money or EMI bouncing will be zero.

1. 45 to 50 days of complete interest-free credit: By choosing the right billing cycle, large expenses can be planned just 1-2 days after bill generation, thereby availing a maximum free credit period of 50 days.

2. Protection from late fees and heavy interest: When bills are due before the salary comes, minimum dues often have to be paid or there is late payment. One gets complete freedom from 40% to 45% annual interest and late fines.

3. Strength in CIBIL Score: By ensuring 100% on-time payments, the payment history (which has 30% weightage in CIBIL) always remains spotless, making it easy to maintain a credit score of 750+.

There are three main ways to change the billing date:

1. Mobile Banking / Net Banking App: Most of the major banks (HDFC, SBI Card, ICICI, Axis Bank etc.) provide a direct option to ‘Change Billing Cycle’ in the ‘Card Management’ or ‘Service Request’ section of their apps.

2. Customer Care Call: The representative can be requested to update his preferred billing date by calling the bank’s 24×7 helpline number.

3. Email or Chat Support: You can send a request to the credit card division of the bank from your registered email ID by writing the last 4 digits of the card and the new preferred statement date.