New Policy: IDFC Mayura and Ashva credit cards will be charged participation fee before shipping. Details here

In a bid to deter unserious applicants, IDFC First Bank has started charging the joining fee upfront before sending out Mayura and Ashva credit cards. “For metal credit card submission, participation fee + GST ​​fee must be paid in advance. The fee is non-refundable,” said IDFC First Bank.

Participation fee is ₹2999 plus GST (Goods and Services Tax) for Ashva credit card ₹5999 plus 18% GST for Mayura credit card.

RBI guidelines

While the RBI (Reserve Bank of India) guidelines clearly state that fees can be charged only when the credit card account is activated, IDFC First Bank has ensured that it does not violate these rules by allowing credit cards to be activated online before sending the physical card. to customers.

“The customer can activate his card himself through the bank’s portal. Cards can be activated before the physical card is sent. Only if the card is activated by paying the joining fee feewill be sent to the customer, said people familiar with IDFC’s updated card activation process.

“The bank has an OTP (one-time password) based digital application process. In this way, the applicant’s consent is obtained. The card is issued only when the transaction is completed successfully. “Explicit consent is obtained from the customer to pay the participation fee in advance during the application,” they said.

The conditions for obtaining a card are clearly stated during the application process. The process is fully compliant with the RBI’s guidelines on credit cards as the credit card account is activated after approval, the people said.

“The approval given for cards issued or other products/services offered along with the card shall be express and not implied,” the RBI said in its main circular. credit cards. “So, the applicant’s written approval will be required before the credit card is issued. Alternatively, card issuers can use other digital modes with multi-factor authentication to obtain explicit customer consent, the Apex bank said.

This move by IDFC comes in the wake of recent complaints about credit cards not being activated upon receipt. physical card. Meanwhile, the RBI said that banks cannot charge joining fee without the credit card being activated.

Card issuers often require OTP-based approval if customers have not activated their credit card for more than 30 days from the day it was issued. “If the card is not activated by the cardholder for more than 30 days from the date of issue, card issuers will request One Time Password (OTP) based approval.” RBI in question.

However, as problems have arisen where customers only receive the card and do not activate it, card-issuing banks now ask for permission before issuing the card. “If the cardholder does not give approval, the card issuer has to close the credit card account within seven days of approval,” said the RBI. It was stated that any request to close the credit card should be processed within seven business days if there are no outstanding dues.

Allirajan M is a journalist with over two decades of experience. He has worked with many of the country’s leading media organizations and has been writing about mutual funds for nearly 16 years.