Credit card user alert! Credit card users will not be able to make payments after June 30, know the reason

Credit It's time for card users to be alert. There are only 6 days left for the month of June to end and on 1st July, a rule related to credit cards is going to be implemented which can have a direct impact on you.

This is the order of Reserve Bank of India

In fact, the Reserve Bank of India has already ordered that after June 30, 2024, all credit card payments will be made through Bharat Bill Payment System-BBPS. According to the information, big banks like HDFC Bank, ICICI Bank and Axis Bank have not yet activated BBPS. All these banks together have issued 5 crore credit cards to the customers.

What will change after June 30?

• Banks or lenders who have not yet complied with the instructions will not be able to accept credit card bill payments after June 30.
• Financial technology companies like PhonePe and Credi, which are already members of BBPS, will also have to comply with these RBI instructions by June 30.
• However, Economic Times quoted the payment industry as saying that the last date or deadline has been sought to be extended by 90 days.
• According to a report by Economic Times, so far only 8 banks have activated the bill payment service on BBPS. Although a total of 34 banks have been approved to issue credit cards, but only 8 of these banks have activated BBPS at present.

Which banks have activated BBPS?

Lenders like SBI Cards, BOB (Bank of Baroda) Cards, IndusInd Bank, Federal Bank and Kotak Mahindra Bank have activated BBPS.

Why has RBI issued this order?

The Reserve Bank has ordered centralized payment of credit cards as it will provide better information on payment trends. Also, it will provide a better way to track and resolve fraudulent transactions.