Tightening norms for credit card issuers, RBI today asked banks to treat outstandings as bad loans in case customers fail to pay the minimum due amount within a stipulated 90 period.

With a view to bringing consistency and inducing transparency, the RBI said, "it is advised that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the next statement date".

In credit card accounts, the amount spent is billed to the card users through a monthly statement with a definite due date for repayment.

Banks give an option to the card users to pay either the full amount or a fraction of it or minimum amount due on the due date and roll-over the balance to the subsequent month's billing cycle.

The Reserve Bank said it has come to its notice that there are divergent practices being followed by banks with regard to asset classification status of credit card accounts if the minimum amount is not paid on the due date.

RBI asked the banks to follow this uniform method of determining over-due status for credit card accounts while reporting to credit information companies and for the purpose of levying of penal charges, like late payment charges, if any.

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