Module: | KYC, NPAs, Advances & Investment Valuations
Q236: As per the RBI Directions, 2025, which of the following best defines a "Charge Card"?
✅ Correct Answer: B
The correct answer is B. As per the RBI Master Direction on Credit Card and Debit Card Issuance, a "Charge Card" is explicitly defined as a specific type of credit card with a strict repayment structure.
Unlike a standard revolving credit card where a user can pay a "Minimum Amount Due" and carry forward the balance, a Charge Card user is legally obligated to pay the billed amount in full on the payment due date.
The definition explicitly states that "no rolling over of credit to the next billing cycle is permitted." Option A describes a secured credit card or prepaid card.
Option C is a fictional description of a fee-based low-interest card.
Option D describes an individual-liability corporate credit card, not the structural definition of a Charge Card.
Unlike a standard revolving credit card where a user can pay a "Minimum Amount Due" and carry forward the balance, a Charge Card user is legally obligated to pay the billed amount in full on the payment due date.
The definition explicitly states that "no rolling over of credit to the next billing cycle is permitted." Option A describes a secured credit card or prepaid card.
Option C is a fictional description of a fee-based low-interest card.
Option D describes an individual-liability corporate credit card, not the structural definition of a Charge Card.