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New Credit Card Rules in 2023: Explained Briefly

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Created on
January 7, 2023


What’s Inside

The Authorities have implemented fresh credit card regulations in 2022 and 2023. These alterations are set to bring positive changes for the typical Indian credit card user. New credit card rules in 2023 will affect how you use your card, pay your bills, and redeem your rewards.

Let's delve into these new rules and explore their potential effects on you.

What are the New Credit Card Rules in 2023

Below are some of the new credit card rules in 2023:

Card Issuers Need OTP if Card Hasn’t Been Activated

  • Credit card issuers need an OTP if the card hasn't been activated for more than 30 days
  • If the card hasn't been activated, the issuer will ask for an OTP to activate the card
  • If the cardholder declines the request, the issuer must cancel the card without charging interest
  • Consent mitigates instances of unauthorized card activation and interest charges

Credit Limit Approval

  • Credit card companies can't change your credit limit without telling you first.
  • If they want to increase your credit limit, they need your permission.
  • And if they decide to decrease your credit limit, they must let you know about it. It's all about ensuring cardholders stay informed and have a say in their credit limits.

Computing Interest Charge

  • The regulatory authorities have come up with a changed way of interest calculation.
  • According to the regulatory authority, they're saying that any unpaid charges, levies, or taxes won't be added to the interest calculation anymore.
  • So, all those extra fees like late payment fees and finance charges that used to be factored into the carry forward amount won't be compounded under these new regulations.

Debit & Credit Card Tokenization

  • Regulatory authority requires unique tokens for online, point-of-sale, and in-app transactions
  • Shopping sites may notify you that your card details will not be retained in their database
  • Tokenizing replaces your 16-digit card number with a token number shared with the merchant
  • This step increases the safety and security of your credit cards during online transactions


In 2023, Indian credit card regulations will be updated with new rules that require greater security, transparency, and user control. These rules include requiring OTP for card activation after 30 days of inactivity, obtaining cardholders' consent for credit limit adjustments, simplifying interest calculations, excluding unpaid charges and taxes from interest calculations, and enforcing credit card tokenization for secure transactions online and in-store. The new credit card rules in 2023 aim to promote transparency, prevent fraud, and empower cardholders.

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Frequently Asked Questions

1. What are the new credit card rules issued in 2023?

The new credit card rules in India include requiring OTP for card activation after 30 days of inactivity, obtaining cardholders' consent for credit limit changes, changing the computation of interest charges to exclude unpaid charges and taxes, and mandating tokenization of card data for enhanced security during online transactions. These rules aim to prevent fraud, promote transparency, and empower cardholders.

2. Are there any changes in the minimum payment requirements with the new credit card rules?

The new rule will now cover the interest component fully and a portion of the principal amount in the minimum amount due. This will ensure that there is no negative amortisation and will avoid the interest and other charges from capitalising.

3. Do the new credit card rules provide more transparency in credit card terms and conditions?

Yes, the new credit card rules provide more transparency and visibility about one's credit card in 2023.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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